Modern Management

Theories
Management Information
system

Presented By Kholoud Albishi

Management Information Systems

• Introduction
• Definition of Management Information Systems Theory
• Structure of Management Information Systems Theory
• Concepts of Management Information Systems Theory
• Requirement of Management Information Systems Theory
• Types of Management Information Systems Theory
• Process of Management Information Systems Theory
• Criteria of Management Information Systems Theory
• Strategies of Management Information Systems Design
• Application of Management Information Systems Theory
• Summary
Introduction

 In today’s Complex modern world, the role of Management Information

Systems and its inevitable impact on society and organizations is known.
 providing timely information, accurate, convenient, brief and communication
at all levels of organizational management requires efficient information
management system to facilitate right decisions and planning and control
administrative duties for management.
 Management information systems (MIS) is the most recent subfield of the
quantitative school.
Definition of Management Information
Systems Theory

 MIS is the field of management that focuses on designing and implementing

computer-based information systems for use by management to support
operations and decision making functions in the organization
 Large amount of information is quickly processed (conversion of raw data into
useful information) to make useful business decisions.
Structure of Management Information
Systems Theory

 MIS is organized system which consists of people, hardware, and

communication networks that collect data and transform that data
into information. It is a tool of communication between top
level management and employees.
 A management information system organizes past, present, and projected data
from both internal and external sources and processes it into usable information
at the proper time then make it available to managers at all organizational
levels.
 As a result, managers can identify alternatives quickly, evaluate alternatives by
using a spreadsheet program, pose a series of “what‐if” questions, and finally,
select the best alternatives based on the answers to these questions.
Concepts of Management Information
Systems Theory

 It serves as the backbone of an organization's operations.

 It gathers data from multiple online systems, analyzes the information, and
reports data to help in management decision-making.
 the idea that raw data (facts) can be used as input into the
hardware/software process producing information as output.
Requirement of Management
Information Systems Theory
 Management Information System (MIS): Top 5 Pre-Requisites
• Pre-Requisite # 1. Qualified systems and management staff
• Pre-Requisite # 2. Control and maintenance of MIS
• Pre-Requisite # 3. Common data base.
• Pre-Requisite # 4. Evolution of MIS
• Pre-Requisite # 5. Support of top management
Principles

 Facilitate decision making by supplying the information needed in an up to date

and accurate form.
• to the people who need it
• on time
• in a usable form
Types of Management Information
Systems Theory

1-cognitive fit theory :

posits that the presentation of information affects task performance.
2- cognitive dissonance theory :
Is concerned with change to eliminate inconsistency between attitudes and behaviours
3- task-technology fit theory:
it holds that information technology capabilities must match user tasks in order for the
technology to have a positive impact.
4- competitive strategy theory:
it draws on economic concepts to determine factors that make a market attractive.
5- socio-technical theory :
emphasizes the need for consistency among independent subsystems for the larger
system to achieve optimal performance.
Types of Management Information
Systems

 Process control systems

 Human resource management systems
 Sales and marketing systems
 Inventory control systems
 Office automation systems
 Enterprise resource planning systems
 Accounting and finance systems
 Management reporting systems
Types of MIS

1. Databank information system:

 Refer to creation of a database by classifying and storing data which might be potentially useful
to the decision-maker. The information provided by the databank is suggestive.
 The decision-maker has to determine contextually the cause and effect relationships.
 MIS designs based on the databank information system are better suited for unstructured
decisions.

2. Predictive information system:

 provide source and data along with predictions and inferences.
 The decision-maker can also enquire as to 'what if a certain action is taken?' and whether the
underlying assumptions are true.
 This type of MIS is useful for semi-structured decisions.
3. Decision making information system:
 provide expert advice to the decision-maker either in the form of a single
recommended course of action or as criteria for choice, given the value system
prevailing in the organization.
 The decision-maker has just to approve, disapprove or modify the
recommendation.
 Decision-making information systems are suitable for structured decisions.
 Operations research and cost-effectiveness studies are examples of decision-
making information systems.

4. Decision taking information system:

integrates predictive information and decision-making systems.
The MIS Process

1- First, establish management information needs and formulate broad systems

objectives so as to delineate important decision areas (e.g., general management,
financial management or human resources management).
 Within these decision areas there will be factors relevant to the management
decision areas, e.g., general management will be concerned about its
relationship with the managing board, institute-client relationships and
information to be provided to the staff.
 This will then lead the design team to ask what information units will be needed
to monitor the identified factors of concern. Positions or managers needing
information for decision making will be identified.
2. Develop a general description of a possible MIS as a coarse design. This design
will have to be further refined by more precise specifications.
For efficient management of information processing, the MIS should be based on a
few databases related to different sub-systems of the organization.
3. Once the information units needed have been determined and a systems design
developed, decide how information will be collected. Positions will be allocated
responsibility for generating and packaging the information.
4. Develop a network showing information flows.
5. Test the system until it meets the operational requirements, considering the
specifications stipulated for performance and the specified organizational
constraints.
6. Re-check that all the critical data pertaining to various sub-systems and for the
organization as a whole are fully captured. Ensure that information is generated in
a timely manner.
7. Monitor actual implementation of the MIS and its functioning from time to time.
 Criteria of Management Information
Systems Theory
• Relevance: Information should be relevant to the individual decision-makers at
their level of management.
• Management by exception: Managers should get precise information pertaining
to factors critical to their decision making.
• Accuracy :The database from which information is extracted should be up-to-
date, contextually relevant and validated.
• Timeliness: The information should be provided at the time required.
• Adaptability :The information system should have an in-built capability for re-
design so that it can suitably adapt to environmental changes and changing
information requirements.
Strategies for determining MIS design

MIS design should be specific to an organization,

respecting its age, structure, and operations.
Six strategies for determining MIS
design
1- Organization-chart approach:
Using this approach, the MIS is designed based on the traditional functional areas, such as finance,
administration and production. These functional areas define current organizational boundaries
and structure.
2-Integrate-later approach:
Largely a laissez faire approach, it does not conform to any specified formats as part of an overall
design. There is no notion of how the MIS will evolve in the organization. Such an MIS becomes
difficult to integrate.
In today's environment - where managers demand quick and repeated access to information from
across sub-systems - the integrate-later approach is becoming less popular.
3-Data-collection approach:
This approach involves collection of all data which might be relevant to MIS design. The collected
data are then classified. This classification influences the way the data can be exploited usefully at
a later stage therefore needs to be done extremely carefully.
4-Database approach :
A large and detailed database is amassed, stored and maintained. The database approach is more
accepted for two main reasons: first, because of data independence it allows for easier system
development, even without attempting a complete MIS; and, second, it provides management with
immediate access to information required.
5-Top-down approach:
involves defining the information needs for successive layers of management. If information
required at the top remains relatively stable in terms of level of detail, content and frequency, the
system could fulfil MIS requirements
The usefulness of this approach depends on the nature of the organization. It can be suitable for
those organizations where there is a difference in the type of information required at the various
levels.
6-Total-system approach:
In this approach the interrelationships of the basic information are defined prior to implementation.
Data collection, storage and processing are designed and done within the framework of the total
system. This approach can be successfully implemented in organizations which are developing.
Application of Management Information
Systems Theory
 A financial MIS provides financial information for managers to make daily
decisions on operations within the organization.
 A marketing MIS supports activities throughout the many activities of
marketing departments. Some of the typical subsystems of a marketing MIS are
marketing research, product development and delivery, promotion and
advertising, product pricing and sales analysis.
 Manufacturing MIS supports manufacturing operations by providing relevant
and timely information for decision making at different levels of the company
hierarchy. It also automates and secures the sequencing of manufacturing and
business processes.
 Human Resources MIS connect human resource processes from hire to retire.
Plan, manage, and optimize global HR processes, Personalize employee
experiences, Focus on Innovation and Supports Remote Workers.
Summary

 MIS plays a very important role in the organization; it creates an impact on the
organization's functions, performance and productivity.
 The impact of MIS on the functions is in its management with a
good MIS supports the management of marketing, finance, production and
personnel becomes more efficient
References

 V.N. Asopa, G. Beye (1997) Management of agricultural research: A training manual. Module 6:
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 Encyclopedia of Management , Management thoughts
 https://www.referenceforbusiness.com/
 Pugh (2006)Management and Decision-Making in Organizations
 https://www.corwin.com/sites/default/files/upm-binaries/15500_Chapter_3.pdf
 Edwin A(1980) THE IDEAS OF FREDERICK W. TAYLOR: AN EVALUATION
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