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13 role of the managent information syst

By Troy Allen,2014-08-01 05:55
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PROFESSOR: STUDENTS:

Prof. Gr. Chondrocoukis Nicoara Maria-Vasilica

Manoiu-Olaru Sorin

Contents

    Introduction ............................................................................................................................................ 3

    1.1 MANAGEMENT INFORMATION SYSTEM (MIS) CONCEPT ................................................................ 3 1.2 MIS DEFINITION ............................................................................................................................. 4

    1.3 ROLE OF THE MANAGEMENT INFORMATION SYSTEM .................................................................... 5 1.4 IMPACT OF THE MANAGEMENT INFORMATION SYSTEM ................................................................ 6 1.5 FUNCTIONS OF THE MANAGER ...................................................................................................... 7

    Study Case ............................................................................................................................................... 9

    2.1 Premises ............................................................................................................................................ 9

    2.2 Project Steps.................................................................................................................................... 10

    2.2.1 The users of the product ....................................................................................................... 10

    2.2.2 System functionalities ........................................................................................................... 11

    2.3 Describing the solution ................................................................................................................ 11

    2.3.1 Covering area ........................................................................................................................ 12

    2.4 The advantages of using SIVECO Business Analyzer solution......................................................... 13 Bibliography .......................................................................................................................................... 14

Introduction

1.1 MANAGEMENT INFORMATION SYSTEM (MIS) CONCEPT

    The concept of the MIS has evolved over a period of time comprising many different facets of the organizational function. MIS is a necessity of all the organizations. The initial concepts of MIS were to process data from the organization and present it in the form of reports at regular intervals. The system was largely capable of handling the data from collection to processing. It was more impersonal, requiring each individual to pick and choose the processed data and use it for his requirements. This concept was further modified when a distinction was made between data and information. The information is a product of an analysis of data. This concept is similar to a raw material and the finished product. What are needed are information and not a mass of data.

    The timing and accuracy of the action information is usually important. The mix of the internal and the external information changes, depending on the level of the management decision. At the top management level, the stress is more on the external information and at the operational and the middle management level; the stress is more on the information. The next figure shows the source and kind of information required vis-à-vis of management in the organization.

     Organization and Information

    The concept of MIS in today’s world is a system which handles the databases, provides computing facilities to the end user and gives a variety of decision making tools to the user of the system. The MIS is a product of a multi-disciplinary approach to the business management. It is a product which needs to be kept under a constant review and modification to meet the corporate needs of the information. It is prescribed product design for the organization. The MIS differs since the people in two organizations involved in the same business. The MIS is for the people in the organization. The MIS model may be the same but it differs greatly in the contents. The MIS, therefore, is a dynamic concept subject to change, time and again, with a change in the business management process. It continuously interacts with the internal and the external environment of the business and provides a corrective mechanism in the system so that the change needs of information are with effectively. The MIS, therefore, is a dynamic design the primary objective of which is to the information for decision making and it is developed considering the

    organizational fabric, giving due regard to the people in the organizational the management functions and the managerial and the managerial control.

1.2 MIS DEFINITION

     The Management Information System (MIS) is a concept of the last decade or two. It has been understood and described in a number ways. It is also known as the Information System, the Information and Decision System, the Computer- based information System. The MIS has more than one definition, some of which are give below.

     The MIS is defined as a system which provides information support for decision

    making in the organization.

     The MIS is defined as an integrated system of man and machine for providing the

    information to support the operations, the management and the decision making

    function in the organization.

     The MIS is defined as a system based on the database of the organization evolved

    for the purpose of providing information to the people in the organization.

     The MIS is defined as a Computer based Information System.

    Thought there are a number of definitions, all of them converge on one single point, i.e., the MIS is a system to support the decision making function in the organization. The difference lies in defining the elements of the MIS. However, in todays world MIS is a computerized

    business processing system generating information for the people in the organization to meet the information needs decision making to achieve the corporate objective of the organization. In any organization, small or big, a major portion of the time goes in data collection, processing, documenting it to the people. Hence, a major portion of the overheads goes into this kind of unproductive work in the organization. Every individual in an organization is continuously looking for some information which is needed to perform his/her task. Hence, the information is people-oriented and it varies with the nature of the people in the organization.

    The difficulty in handling this multiple requirement of the people is due to a couple of reasons. The information is a processed product to fulfill an imprecise need of the people. It takes time to search the data and may require a difficult processing path. It has a time value and unless processed on time and communicated, it has no value. The scope and the quantum of information is individual-dependent and it is difficult to conceive the information as a well-defined product for the entire organization. Since the people are instrumental in any business transaction, a human error is possible in conducting the same. Since a human error is difficult to control, the difficulty arises in ensuring a hundred per cent quality assurance of information in terms of completeness, accuracy, validity, timeliness and meeting the decision making needs.

    In order to get a better grip on the activity of information processing, it is necessary to have a formal system which should take care of the following points:

    ; Handling of a voluminous data.

    ; Confirmation of the validity of data and transaction.

    ; Complex processing of data and multidimensional analysis.

    ; Quick search and retrieval.

    ; Mass storage.

    ; Communication of the information system to the user on time.

    ; Fulfilling the changing needs of the information.

    The management information system uses computers and communication technology to deal with these points of supreme importance.

1.3 ROLE OF THE MANAGEMENT INFORMATION SYSTEM

    The role of the MIS in an organization can be compared to the role of heart in the body. The information is the blood and MIS is the heart. In the body the heart plays the role of supplying pure blood to all the elements of the body including the brain. The heart works faster and supplies more blood when needed. It regulates and controls the incoming impure blood, processes it and sends it to the destination in the quantity needed. It fulfills the needs of blood supply to human body in normal course and also in crisis.

    The MIS plays exactly the same role in the organization. The system ensures that an appropriate data is collected from the various sources, processed, and sent further to all the needy destinations. The system is expected to fulfill the information needs of an individual, a group of individuals, the management functionaries: the managers and the top management. The MIS satisfies the diverse needs through a variety of systems such as Query Systems, Analysis Systems, Modeling Systems and Decision Support Systems the MIS helps in Strategic Planning, Management Control, Operational Control and Transaction Processing.

    In the process of management, a manager uses human skills, material resources and scientific methods to perform all the activities leading to the achievement of goals. The management process involves a continuous resolution of conflicts of one kind or the other which affects the achievement of goals. In the management of any activity, a manager comes across human conflict, conflict of goals, between alternative resources, conflict of time, conflict of approach or method and the conflict of choice. An effective way of handling this process is to treat the organization as a system.

    The key concepts of the system theory used in the management are as follows:

     A system is a comprehensive assembly of parts becoming an organization to

    achieve the stated goals.

     A system is called OPEN if it has interaction with the environment and

    CLOSED if it not have an interaction with the environment.

     A system is defined, described and understood by the boundaries within

    which it performs.

     The system are subject to entropy, i.e., the tendency to run down. CLOSE

    systems suffer from entropy as they are cut off from the environment, while

    OPEN systems interact with the environment and draw upon the support of

    resources to maintain a given condition.

     Systems try to remain in an equilibrium or a steady state by taking recourse to

    corrective action. This is possible when the system has its own feedback, i.e.,

    an informational input about the state of the system.

    The advantage of viewing the management as a system is that it enables us to see the critical variables, constraints and their interaction with one another.

    MIS has certain other characteristics for the top management. It contains forecasting models to probe into the future-the business model for evaluation of the strategy performance by simulation business conditions. It contains functional models such as the model for a new product launching, budgeting, scheduling and the models using PERT/CPM technique for planning.

    MIS for the top management relies heavily on databases which are external to the organization. The management also relies heavily on the internal data which is evolved out of transaction processing. Management uses the standards, the norms, the rations and the yardsticks while planning and controlling the business activities. They are also used for designing strategies and their mix. The MIS is supposed to provide correct, precise and unbiased standards to the top management for planning.

    We can summaries the role of the MIS in the top management function as follows.MIS supports by way of information, to:

     decide the goals and objectives,

     determine the correct status of the future business and projects,

     provide the correct focus for the attention and action of the management,

     evolve, decide and determine the mix of the strategies,

     evaluate the performance and give a critical feedback on the strategic failures,

     provide cost-benefit evaluation to decide on the choice of resources, the mobilization of

    resources, and the mix of resources,

     generate the standards, the norms, the ratios and the yardsticks for measurement and

    control.

    Success of a business depends on the quality of support the MIS gives to the management. The quality is assured only through an appropriate design of the MIS integrating the business plan with the MIS plan.

1.4 IMPACT OF THE MANAGEMENT INFORMATION SYSTEM

    Since the 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 support, the management of marking, finance, production and personnel become more efficient. The tracking and monitoring of the functional targets becomes easy. The functional, managers are informed about the progress, achievements and shortfalls in the probable trends in the various aspects of business. This helps in forecasting and long-term perspective planning. The managers attention is brought to a situation which is exceptional in

    nature, inducing him to take an action or a decision in the matter. A disciplined information reporting system creates a structured data and a knowledge base for all the people in the organization. The information is available in such a form that it can be used straight away or by blending analysis, saving the managers valuable time.

    Every person in the organization is a user of the MIS. The people in the organization operate at all levels in the hierarchy. A typical user is a clerk, an assistant, an officer, an executive or a manager. Each of them has a specific task and a role to play in the management of business. The MIS caters to the needs of all persons.

     The recent major technological advances in communication such as Multimedia, Imaging, Graphical User Interfaces (GUI), Internet, Web etc. and the ability to access the data stored at different locations on the variety hardware of platforms would make MIS more attractive and efficient proposition. An intelligent user of information can demonstrate the ability of decision making, since his manipulative capability is considerably increased, with the information now being available on his desktop.

    Through the MIS, the information can be used as a strategic weapon to counter the threats to business, make business more competitive, and bring about the organizational transformation

    through integration. A good MIS also makes an organization seamless by removing all the communication barriers.

1.5 FUNCTIONS OF THE MANAGER

    An individual who gets the thing done is a Manager. It is necessary to distinguish between the task and the functions. While manager may perform the task such as accounting, selling, manufacturing, purchasing, etc. These activities are called as tasks and not as functions. The activities that are performed through the managerial functions are planning, organization, staffing, directing coordinating and controlling.

     Planning is a process of determining the goals and objectives and evolving strategies

    policies, programmers and procedures for the achievement of these goals. The essence of

    the process is decision making as there are a number of alternatives in each of these

    factors.

     Organization involves evolving the structure of the people working in the organization

    and their roles. It specifies an authority structure and assigns activities to the people

    backed by the delegation of authority. Building a meaningful effective structure of

    authority and the relationship is known as organizing.

     Staffing involves manning the positions in the organization structure. It requires defining

    the manpower needs per position or centre of activity. It requires appropriate selection of

    the person or persons ensuring that they together will achieve the goals and objectives of

    the organization.

     Directing is a complex task of implementing the process of management. In the process,

    the manger is required to guide, clarify and solve the problems of the people and their

    activities. It is necessary to motivate the people to work for the goal with an interest and a

    confidence.

     Coordinating is the function which brings a harmony and smoothness in the various

    group activities and individual efforts directed towards the accomplishment of goals.

    It is a process of synchronizing individual actions and the efforts which may differ

    because of the differences in the personal goals and the common goals, the differences in

    the interpretation of methods and directions. It is, therefore, necessary to undertake

    centrally a process of coordinating and reconciling the differences in the approach, timing,

    efforts and interests towards a common goal. This task is to be carried out by the

    authority placed at a higher level in the organization structure.

     Controlling is a process of measurement of an output, comparing it with the goals, the

    objectives and the target, and taking corrective actions, if the output is falling short of the

    stated norms. Controlling ensures an achievement of the plan. The essence of the control

    lies in good planning. It helps to evaluate the performance, highlights abnormal

    deviations, and guides a manager to take specific corrective actions. This may call for a

    change of plan, a reallocation of resources, a modification of methods, procedures and

    even the organization structure. The control is central to the managerial function. The managers main function, therefore, is planning and control of the business functions and operations. While performing these functions, he resorts to the scientific approach to the management. All managers, whether they are managing a business, a school, a hospital, Government Department, or any enterprise, work in an environment in which the organization operates. There are a number of forces which are generated in the environment, which have an

    impact on the managerial performance. These forces may be from within or from outside the organization. They affect, directly or indirectly, the process of the management and a manager is required to meet these forces effectively. While to some extent the internal environment is controllable, the external environment is beyond his control. Since it is proven that the external environment also has an impact on the business managers performance, it is necessary to know

    and understand the environment. An experienced manager is a skillful information processor where he is able to change the frame of reference or select the decision making tool for the available information. He is also in a position to add more knowledge base information to the current information to increase the value of the information. A generalized model of information processor is shown in the next figure:

    Generalized Model of Information Processor

Study Case

    The implementation of the management information system- SIVECO Business Analyzer at Arpechim Pitesti (improving the information process and taking decisions)

2.1 Premises

    Arpechim Pitesti, a branch of National Company of Petrol “PETROM S.A.”, is one of the

    well known companies for processing oil (crude oil) and petro-chemistry from Romania and other countries, being the principal supplier of petrochemical products on internal market and with many business links from external market. Arpechim Pitesti proposes itself to become the most profitable and the most performing petrochemical company from Romania and to be within the first from East and Central Europe. Lead by these objectives starting from 1993 in the company was elaborated plans for upgrading, protecting the environment and development of information technology (IT).

    The first aspect took in consideration in the strategy of development of IT at Arpechim consist in achievement the informational network. The general conception which stood at base was regarding the technology Client/Server. After developing the informational network the first step towards an integrated, efficient and modern informational system was choosing SAP R/3 as this kind of system.

    In this way Arpechim become to detain application in many systems of databases managing:

     SAR R/3 system with Oracle databases for: financial-accountancy activities, materials

    administration, unpacking administration, immobile resource administration, cost control,

    clients administration, suppliers administration, cashing and payment administration,

    maintenance of the equipments.

     SGBD PARADOX- for human resources and wage system administration, production

    surveying, board tables, etc.

     SGBD Visual Fox- for lab activities, transport activities, metal manufacturing activities,

    etc.

     PARADOX- for surveying production and report at board table level

     FOX for personal and financial-accountancy activities

     EXCEL- for other reports.

    With SIVECO Romania collaboration has been expected a powerful instrument for monitoring and managerial decision that would provide integrated, coherent and homogeny information about operational date came from the main business activities of the company.

    The chosen solution for homogeneousness of the integrated informational system was the creation of an Oracle Data Warehouse for storing and integrating data with the help of SIVECO Business Analyzer product as analysis support for these data on different level of aggregation and detail.

    2.2 Project Steps

    The implementation of the project started in September 2002 and it was finished in April 2003.

    The main objectives of the project were improving the informational and decisional process with the help of a set of indicators implemented and with the construction of an efficient team for development and support the decisional applications.

    The secondary objectives of the project were replacing the old system of reporting and expanding him according to the needs of the owner, obtaining of graphic reports and efficient tabling as analysis support and decision that would allow multi-criteria data selection, flexibility and quick answers to user query, log analysis, what-if and forecasts.

2.2.1 The users of the product

     Usual users without special training in computers;

     Department users has access to certain data from a specific department;

     Experience users develop analysis application, usually without programming.

    During the implementation of the project were schooled about 30 users. The implementation steps were based on SIVECO CIDS methodology. SIVECO CIDS methodology (Controlled Implementation of Decision Support systems) it’s a verified approach for implementation MIS

    based on SIVECO Business Analyzer system. It’s composed from phases and processes well defined that can be conduct in many ways in a project that implements a SIVECO Business Analyzer application and ensure all the necessary instruments for planning, leading and controlling efficient the steps of the project with the aim of finalizing the implementation with success.

    CIDS define the business needs at the beginning of the project and survey them along the whole period of implementation. Using this method the team had a clear imagine of the needs that have to be satisfied by the productive system.

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