1) Definition

Management Information System or 'MIS' is a planned system of collecting,

storing, and disseminating data in the form of information needed to carry out the
functions of management.

Ans.2)

Information

Information, in MIS, means the processed data that helps the management in planning,
controlling and operations. Data means all the facts arising out of the operations of the concern.
Data is processed i.e. recorded, summarized, compared and finally presented to the management
in the form of MIS report.

Ans.3 )

Management

Management covers the planning, control, and administration of the operations of a concern.
The top management handles planning; the middle management concentrates on controlling;
and the lower management is concerned with actual administration.

Information
Information, in MIS, means the processed data that helps the management in planning,
controlling and operations. Data means all the facts arising out of the operations of the concern.
Data is processed i.e. recorded, summarized, compared and finally presented to the management
in the form of MIS report.

System
Data is processed into information with the help of a system. A system is made up of inputs,
processing, output and feedback or control.
Thus MIS means a system for processing data in order to give proper information to the
management for performing its functions.

Ans.4) SUB SYSTEMS OF MIS A Sub system is simply a system .This means that
a system exist on more than one level and can be composed of sub systems or
element parts . Following are the subsystems of MIS:
1. Transaction processing system
2. Management reporting system
3. Decision support system
4. Office information system
5. Expert information system
EXAMPLE: Let us look at a simple example of a business transaction.
McDonald's, which sells a large number of hamburgers every day, orders raw
materials from its suppliers. Each time the company places an order with a
supplier, a transaction occurs and a transaction system records relevant
information, such as the supplier's name, address, and credit rating, the kind and
quantity of items purchased, TRANSACTION PROCESSING SYSTEM A
Transaction Processing System (TPS) is a type of information system that collects,
stores, modifies and retrieves the data transactions of an organization.

Ans,6) Transaction Processing System are operational-level systems at the

bottom of the pyramid. They are usually operated directly by shop floor
workers or front line staff, which provide the key data required to support
the management of operations. This data is usually obtained through the
automated or semi-automated tracking of low-level activities and basic
transactions

Ans.7) In artificial intelligence, an expert system is a computer system that

emulates the decision-making ability of a human expert. Expert systems
are designed to solve complex problems by reasoning about knowledge,
represented primarily as ifthen rules rather than through
conventional procedural code. The first expert systems were created in the

1970s and then reproduced in the 1980s. Expert systems were among the
first truly successful forms of AI software.

Ans.8) Financial information system is a sub-system of organizational

management information system. This sub-system supports the decisionmaking process of financial functions at the level of an organization

Ans.9) This sub-system of management information system provides

information about various functions of the marketing system of an
organization. Marketing is another functional area of the business
organization, which is engaged in marketing (selling) of its products to its
customers.

PART- B
10.b)

. STRUCTURE OF MIS

Describe the MIS Structure Based on the Physical Components

Structure of MIS may be understood by looking at the physical components of
the information system in an organization. The physical components of an
organizational information system may be hardware, software, database, manual
procedures and operating persons. A brief description of these components has
been outlined in the following paragraphs:

Hardware
Hardware refers to the physical data processing equipment and peripheral devices,
For example,CPU, monitor, keyboard, printer, drives, tapes, communication
devices, etc.
Software
Software is a broad term given to the instructions or programs that direct the
operating of the hardware. Software could be of two types, i.e. system software and
application software.
Database
The database consists of all data utilized by application software.
Procedures
Formal operating procedures, which are required to operate a system, such as
manuals, are also regarded as physical elements.
Operating Personnel
Personnel like Computer Operators, Computer Programmers, System Analysts,
System Managers, etc., are the operating people of the information systems.
Input and Output Various physical inputs and outputs from the information
system, existing in forms like printout, reports etc.

Physical Components
1.Information System Processing Functions
2. Decision Support
3. Levels of Management Activities
4. Organizational Functions
Based on Physical Components
Hardware
Software
Database
Procedures
Operating Personnel
Input & Output
Based on Physical Components
Hardware: E.g. CPU, Monitor, Keyboard, Printer etc.
Software: E.g. System and Application S/W.
Database: E.g. Data stored in files.
Procedures: E.g. Manuals etc.

Operating Personnel: E.g. Computer Operators,

Programmers, System Analysts, System Manager etc.
Input & Output: E.g. Printouts, Reports etc.
Based on Processing Functions
To Process Transactions
To Maintain Master Files
To Produce Reports
To Process Enquiries
To Process interactive Support Applications
Based on Processing Functions
To Process Transactions: E.g. Making a purchase or a sale of a product.
To Maintain Master Files: E.g. For preparing an
employee's salary, required data items are Basic Pay,
Allowances, Deductions etc.
To Produce Reports: For e.g. Specific or Adhoc reports
To Process Enquiries: For e.g. Regular or Adhoc
enquiry.
To Process interactive Support Applications: E.g.
Applications designed for planning, analysis and decision
making.
Based on Output For Users
Transaction Documents or Screens
Preplanned Reports
Preplanned Inquiry Responses
Adhoc Reports & Inquiry Responses
User-machine Dialog Results
MIS Support for Decision Making
Structured / Programmable Decisions
Unstructured / Non-Programmable Decisions
Semi-Structured Decisions
MIS Support for Decision Making
Structured / Programmable Decisions:
Decisions that are repetitive, routine and have a definite
procedure for handling them.
For e.g. Inventory reorder formula, Rules for granting

Credit.
Unstructured / Non-Programmable Decisions:
Non-routine decision in which the decision maker must
provide judgment, evaluation, and insights into the
problem definition.
For e.g.
Semi-Structured Decisions:
Decision where only part of the problem has a clear cut
answer provided by an accepted procedure.