Q1 (A) –

Definition of MIS 2005

Q2 (A) –
Management Information System is a system that aids management in making, 2006
carrying out and controlling decisions. MIS consists of people, equipment and
procedure to gather, sort, analyze, evaluate and distribute timely and accurate
information to the decision maker.

Nature of MIS
• Report orientation: Through MIS, every individual can perform their duty and
the system automatically produces performance reports to send for
evaluation to the next level of hierarchy according to the company and
system specifications and / or requirements.

• Action oriented: MIS performs regulating and scheduled actions on behalf of

the user as the system is customized on the basis of need and requirements
at the user’s end.

• Expectation oriented: The reports and automatic transactions are expected

from a CBS (Computer Based System).

• Database oriented: Almost every MIS software is based on a Database

backbone to support efficient storage and retrieval of data to and from the
system respectively simultaneously and concurrently from more than one
workstation at a time.

• End-user oriented: Main emphasis is given on the end-user, who uses the
system. The system must be understandable and easy to access for the end
user for a seamless operation of the system.

Benefits from MIS

• It provides timely, accurate, scientific reliable and permanent information

• It avoids duplication of efforts

• Coordinates the whole organization

• It provides the information in the form and format as required by the

information seeker

• Helps in making better and scientific decisions by the management

• Processing and retrieval speeds are increased considerably

• The scope for the information technology is expanded

Limitations of MIS
• Quality of operation of MIS depends on quality of input

• MIS is not a perfect substitute for an effective management

• MIS may not have requisite flexibility to quickly update itself with the
changing needs of time, especially in complex environments

• MIS cannot provide tailor made information packages suitable for the purpose
of every kind of decision making scenario

• MIS takes only quantitative factors into account

• It is not very effective in non-programmed decision making cases

Q8 (A) –
Framework of MIS / Needs to have MIS 2005
Q2 (B) –
Input of MIS
• Strategic plan or corporate policies
• Contains major financial objectives and often projects financial needs.
• Transaction processing system (TPS)
• Important financial information collected from almost every TPS -
payroll, inventory control, order processing, accounts payable,
accounts receivable, general ledger.
• External sources
• Annual reports and financial statements of competitors and general
news items.

Output of MIS
• Scheduled reports
• Produced periodically, or on a schedule (daily, weekly, monthly)
• Key-indicator report
• Summarizes the previous day’s critical activities
• Typically available at the beginning of each day
• Demand report
• Gives certain information at a manager’s request
• Exception report
• Automatically produced when a situation is unusual or requires
management action
 Q3 (C) –
Subsystems and Interconnected systems of MIS 2009
• Financial
o Provides financial information to all financial managers within an
organization
o Inputs
 Strategic plan or corporate policies
• Contains major financial objectives and often projects
financial needs.
 Transaction processing system (TPS)
• Important financial information collected from almost
every TPS - payroll, inventory control, order processing,
accounts payable, accounts receivable, general ledger.
• External sources
• Annual reports and financial statements of competitors
and general news items.
o Outputs
 Profit/loss and cost systems
 Auditing
 Internal auditing
 External auditing
 Uses and management of funds
• Manufacturing
o Inputs
 Strategic plan or corporate policies.
 The TPS:
• Order processing
• Inventory data
• Receiving and inspecting data
• Personnel data
• Production process
 External sources
o Outputs
 Design and engineering
 Master production scheduling
 Inventory control
 Manufacturing resource planning
 Just-in-time inventory and manufacturing
 Process control
 Computer-integrated manufacturing (CIM)
 Quality control and testing
• Marketing
o Supports managerial activities in product development, distribution,
pricing decisions, and promotional effectiveness
o Inputs
 Strategic plan and corporate policies
 The TPS
 External sources:
• The competition
• The market
o Outputs
 Marketing research
 Product development
 Promotion and advertising
 Product pricing
• Human Resource
o Concerned with all of the activities related to employees and potential
employees of the organization
o Inputs
 Strategic plan or corporate policies
 The TPS:
• Payroll data
• Order processing data
• Personnel data
 External sources
o Outputs
 Human resource planning
 Personnel selection and recruiting
 Training and skills inventory
 Scheduling and job placement
 Wage and salary administration
• Accounting MISs
o Provides aggregated information on accounts payable, accounts
receivable, payroll, and other applications.
• Geographic information systems (GISs)
o Enables managers to pair pre-drawn maps or map outlines with tabular
data to describe aspects of a particular geographic region.
 Q2 (C) –
Difference between DSS and MIS
2006
The terms MIS and DSS stand for Management Information Systems and Decision Q3 (B) –
Support Systems respectively.

MIS is basically a kind of link to facilitate communication between managers across

different areas in a business organization. MIS plays a pivotal role in enabling
communications across the floor of an organization, between various entities
therein.

DSS, many consider, is advancement from the original MIS. However, this is not the
sole difference between the two. While there may not be too much separating the
two, the difference is still there, as is apparent when we say DSS is an advancement
over MIS.

The essential difference between the two is in focus. DSS, as the term indicates, is
about leadership and senior management in an organization providing good,
reliable judgment as well as vision. MIS, on the other hand, is about focusing on the
actual flow of information itself.

It is often said that MIS and TPS are subsystems of a total CBIS that feeds data in
lateral and integrated manner to the DSS system. Where MIS is more strict and
format oriented in contract with DSS which is more flexible as the ultimate decision
maker after all is a human.

Transaction Processing Systems (TPS)

A Transaction Processing System is a set of information which processes the
data transaction in database system that monitors transaction programs (a special
kind of program). The essence of a transaction program is that it manages data that
must be left in a consistent state. E.g. if an electronic payment is made, the amount
must be either both withdrawn from one account and added to the other, or none at
all. In case of a failure preventing transaction completion, the partially executed
transaction must be 'rolled back' (undo) by the TPS.

Features

• Rapid response

• Reliability

• Inflexibility

• Controlled processing