2. A management information system is essentially an
integration of information systems that are designed to
support the functional systems of the business.
Information systems which developed around the functional
areas of a business organisation are popularly known as
Functional Information System.
Each of these functional areas requires unique information.
Thus it requires a support of information system framed
specifically for it.
MIS ( an integration of information system ) is designed to
support the fuctional subsystems of the business
3. Subsystems of an MIS
Two approaches :
Organizational Function Subsystems
Activities Subsystems
4. Organizational Function
Subsystems
There may be common support system used by more than
one subsystem, but each functional system is unique in its
procedures,programs,models,etc.
Production/Manufacturing
Marketing
Personnel
Logistics
Finance & Accounting
Information Processing
Top Management
5. Activities Subsystems
Transaction Processing – Processing of orders,
shipment and receipts.
Operational Control – Scheduling of activities and
performance reports.
Management Control – Formulation of budgets and
resource allocation.
Strategic Planning – Formulation of objectives and
strategic plans.
6. System is the 3rd element of MIS.It is an inter related set
of elements that functions as a whole.
A system may be defined as a set of elements which are
joined together to achieve a common objective. The
elements are inter related and inter dependent.
In an information system, data are input which is
processed to convert it into information. When feedback
and control elements are attatched to any system ( to
make it self – regulatory and self monitoring ), it is
known as Cybernetic System.
8. Open & Closed system
Super system & Sub system
Deterministic & Probabilistic System
9. Open & Closed System
A system which does not interact or exchange any
of its inputs or outputs with its environment.
Eg: A chemical reaction in a sealed , insulated
container.
A system which interacts with its environment and
exchanges inputs is called Open system.
Eg: Biological system (such as humans ) and
organizational systems.
10. Super system & Sub system
Some systems are part of a large system and they are
known as sub system. They are interactive and dependent
to each other. They work together to achieve a common
goal.
Eg: Human body – respiratory system, nervous system
Super system is a large and complex system. it may or
may not have a number of parts known as its subsystem.
Super system is always complex and difficult to
understand.
Eg: Education System
12. Deterministic & Probabilistic System
A deterministic system is one in which the occurrence of all
the event is certain or it is a system which operates in
accordance with predefined set of rules. Every step and order
of their performance is known.
Eg: Billing System of a departmental store
A probabilistic system is one in which the occurrence of the
event cannot be perfectly predicted. The results of such system
cannot be pre-determined.
Eg: Examination system, Sales forecasting, Weather
forecasting.