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MANAGEMENT INFORMATION SYSTEMS: DEFINITION AND ATTRIBUTION

Amarin Tawata Faculty of Management Science Silpakorn University, Petchburi IT Campus 1 Moo 3 Tambon Sampraya Ampur Cha-Am Petchburi 76120, Thailand Tel: 66-3259-4043-50 Ext. 1130 Fax: 66-3259-4027 E-mail: amarin@su.ac.th

ABSTRACT This paper describes definition and attribution of management information system. It clarifies points like data, information, process, information systems, management information systems, relationship MIS and computer systems and types of MIS. Management information systems (MIS) are applying computer-base for managing information in organizations for management roles such as interpersonal roles, informational roles and decisional roles. MIS compound of theories of computer science and management science. These theories build systems and program utilization. Normally, MIS are integrated systems of users and machines (computers) with aiming to provide organizations information for operation, management and decision-making. The 5Cs are process to change data into information. They consist of capturing information, conveying, creating, cradling and communicating. The information must be accuracy and verification, completeness, timeliness and relevance. MIS can be divided by using of each organization level like operational level systems, knowledge level systems, management level systems and strategic level systems. Keywords: Management Information Systems, MIS Data and Information Data mean any facts of persons, objects and places that are collected from observations, questionnaires, and measurements. Data can be context and figures which are true. False context and figures are useless like trash that nobody needs it. If an organization applies false data, it may get a wrong way or it can not solve a problem. Sometimes, we call data as raw data because theyre unused or inappropriate for users. When data have been recorded, classified, and organized, related or interpreted within a framework so that meaning emerges, they become information. There are activities

2 involved in turning data into information, and these activities are known as process. In briefly, information means outputs of processed data. Therefore, users can apply it. For example, an executive require total sales of each product in the last year as a chart. Because he need summarized data for planning sales (Its easier and quicker to understand the chart information than raw data of each product). In another example, teachers are grading each student by using total scores. The figure 1 illustrates the data and information. Figure 1 Data and Information ( Laudon and Laudon, 2004: 99) Process Data

Information

Input

Processing, Classify, Arrange And Calculate

Feedback

Output

Process is procedures that convert data into required information. In technical, these procedures are fast done by a computer (both hardware and software). We can select a appropriated computer program for process. There are many computer programs to process like word processing, spreadsheet and database management system. They organize and manipulate data and information. The process tasks are 5 activities called 5Cs. 1. Capturing. This processing is originally obtaining information by using IT tools like a mouse, keyboard and bar code reader. Simplify, its inputting data at the original point. Selecting IT tools for inputting depends on capturing information and/or commands and its form. 2. Conveying. This processing is showing the most useful information by using IT tools like a screen, printer, speaker and monitor. Simplify, its outputting data. Selecting IT tools for outputting depends on forms of users needs. 3. Creating. This processing is creating new information by using IT tools like CPU and RAM. This is the most important process in 5Cs. Its done by the central processing unit (CPU) executing software instruction and interact all the other hardware devices. The random-access memory (RAM) or an internal memory is temporary storage of on-working information, on-working application software and operating system. 4. Cradling. This processing is storing information for a later time by using IT tools like a hard disk, CD-ROM and DVD. Its permanently storing information which users can change or erase. Selecting IT tools for storage depends on users need for updating and information size. 5. Communicating. This processing is distributing information to other people or other location by using IT tools like a modem, a satellite and a digital pager. When we say communicating, it concerns telecommunications technologies.

3 One of them is a computer network. Its connecting at least two computers to communicate like sharing information, software, peripheral devices and/or processing power. The informations attributes comprise of accuracy and verification, completeness, timeliness and relevance. 1. Accuracy and Verification. The obtained information must come from facts by using procedures like observations, questionnaires and measurements. The expectation may give false data. When you get facts, its processed to be appropriating for implementation or users needs. For example, an executive requires information for making decision. If information is wrong, an organization will get damage. Information has to have references, so they let users tracing. Actually, users will get confident to use information, if they know the sources of information. 2. Completeness. Users have to receive completed information. Especially, executives need completed information for making decision. 3. Timeliness. The best information has to be always updated, not outdated. Therefore, users can apply it for present situation. Particularly, business organizations need updated data for competition. The outdated data can take disadvantages of any business organizations. 4. Relevance. The obtained information has to be related to users activities. Users have not to get overloaded information. In the past, business competitions are not intensive. An executive could wait for getting enough information, then, he made decision. Nowadays, information is considered as valued property of an organization. It can maintain organization competitiveness. If an organization quickly and precisely gets information, the executive can quickly and precisely make decision or solve a problem. As a result, the organization can stand in intensive competition. Information systems A system means a set of elements which are interactive by operating as a group to meet a purpose. A system may consist of people, tools, equipments, supplies and methodologies for finishing the same purpose. For example, a supply chain system has a purpose for delivering products to end customers. Figure 2 A supply chain system (Schroeder, 2000:181)

SuppliersSuppliers Factories arehouseRetailers W Customers s

Components of a system comprise of tangible things, intangible things and people. In a supply chain system may comprise of materials, trucks, machines, warehouses, inventory, retailers, computer software, management, method, workers, opinions, partnership and customers. All of these are working together to meet the same purpose. Now, we can conclude that an information system means all components involving with getting information which is started from finding data, inserting data, storing date, processing data, storing information, distributing and showing information following users requirements. Nowadays, information systems are computer-based. So, they involve computer hardware and software technology. As a result, computers are tools for information systems. They can effectively store, process and distribute data and information. Therefore, an information system has 6 components. There are hardware, software, telecommunications, people, process and data or information. As you see figure 1, information is output of information systems. Its used for 3 management roles like interpersonal roles, informational roles and decisional roles. Management In 1916, Henri Fayol presented the classical model of management. There are 5 management functions such as planning, organizing, commanding, coordinating and controlling. However, this model is unsatisfactory for indicating all management tasks. Therefore, Henry Mintzberg proposed 3 categories of management roles called the behavioral model. From analyzing managers day-to-day behavior, Henry Mintzberg concluded management roles to 3 categories consisting of interpersonal roles, informational roles and decisional roles. Interpersonal Roles. Management tasks involve interaction with people to lead, motivate, counsel and support. It can be supported by information systems like electronic mail, presentation graphics, video teleconferencing and voice mail. Informational Roles. Management tasks involve receiving and sending information to communicate to other people in an organization. This communication can make an organization meeting its goals and objectives. It can be supported by information systems like decision support systems and executive information system. Decisional Roles. Management tasks involve initiating planning, controlling, allocation and negotiating to solve problems and adjust an organization following

5 fluctuated environment. It can be supported by information systems like decision support systems and executive information system. Information systems are created for 3 categories of management roles called management information systems (MIS). MIS support many tasks in organizations. As a result, those tasks get more effective and efficiency.

Management Information Systems (MIS) At the present, organizations realize that information is important as a property. It can add value to organizations. As well as, it helps organizations to survive among intensive competition. Therefore, organizations need information for management. Particularly, information must be a system to implementation for adding value of organizations. Each organization must manage information by systematically collecting. Then, there will be sending, receiving and analyzing information. Due to a lot of information in organizations, organizations use information technologies (IT) to manage information. Information technologies are applying science that is used for managing information. They are both hardware and software such as computers, cables, magnetic taps, CDs, monitors, operating systems, application software, signal and so on. Information technologies, particularly computer-base, systemize information in organizations. Therefore, users can quickly and easily adopt information. Information technologies can process data to be required information and sending/receiving information. Management information systems (MIS) are applying computer-base for managing information in an organization for management roles such as interpersonal roles, informational roles and decisional roles. MIS compound of theories of computer science and management science. These theories build system and program utilization. Normally, MIS are integrated systems of users and machines (computers) with aiming to provide organizations information for operation, management and decision-making. These systems use computer hardware and software. Furthermore, MIS are used to collect and cumulate data from several sources both internal and external organization for processing and arranging information. Therefore, executives or users can apply it for making decision and other management. Relationship of computer systems and MIS Computer systems are components of MIS. They involve the whole information systems of organizations. They facilitate organizations divisions with collecting, processing, showing, and sending/receiving information. These functions are used from an executive to an operational worker. As results, an organization sizes down, operates flexible, accuracy and fast. We can say an organization gets efficiency and effective. Nowadays, computer systems are main systems of MIS.

Sub systems of MIS MIS are integrated systems, so theyre large and complicated. To understand, there are divided MIS into 4 sub systems by purpose of use in each organization level. The organization levels comprises of operation, knowledge, management and strategy. Particularly, there are MIS support each level. 1. Operational Level Systems. In this level, there is transaction processing systems (TPS). They involve processing routine operation in organizations for decision support systems, management support system, knowledge work systems and office system. TPS are computerized systems that make performing tasks easier. 2. Knowledge Level Systems. These systems are used by knowledge workers such as scientists, engineers and clerks (they hold university degree.). Following these samples knowledge work systems (KWS) and office systems. KWS tasks are creating properly new information and knowledge by process. Then, knowledge worker can use it. Office systems perform document and communication. KWS and office systems process data from TPS. 3. Management Level Systems. This level consists of management support systems (MSS) (many text book use MIS meaning MSS.) and decision support systems (DSS). These systems provide information for management functions like planning, controlling and decision making. MSS process data from TPS, then managers can use it. DSS help managers for making decision. They include models to evaluate situation and give possible choices. They process data from TPS and MSS. 4. Strategic Level Systems. Executives need internal and external data for planning strategy. So, executive information systems are created for them. ESS response executives queries. They process data from MSS and DSS.

MIS advantages to an organization We can summarize MIS advantages of an organization following these. 1. Users can quickly and timely access information since information is systematically stored by using computer systems and computer networks. 2. MIS support executives making decision, setting and adjusting strategies and operational plans. They summarize and analyze information. So, executives can easily apply it. 3. Good MIS will show how an operation accords to an organization goal. Its adopted to monitor an operation. 4. MIS reduce organizations cost because of time, labor and expenses reducing in long run.

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