Q1: What are the limitations of MIS?

What are the factors which lead to success and failures of MIS in an organisation? Ans: A Management Information System (MIS) is a valuable tool company management uses to gauge the effectiveness of their business operations. The MIS can provide detailed insight to certain portions of a company and also assist management with making critical business decisions. An MIS is one method a company uses to obtain reliable information regarding its business operations. Once information is provided through the MIS, decisions can be made regarding the effectiveness of business operations. Limitations do exist with an MIS, such as the expense to create and implement an MIS, training time for employees, lack of flexibility and capturing wrong or incomplete information. Limitations on Management Information Systems Cost of Technology Upgrades Implementing a new MIS or new MIS procedures can prove to be a difficult process for older computer mainframe systems or business software applications. Because modern technology can change rapidly in a short amount of time, companies must maintain current hardware and software systems in their company. Business hardware is an additional overhead expense companies usually pass on to consumers. Failing to recoup these infrastructure costs can leave companies with a large capital expense on their financial statements. MIS Expense MIS implementation can be very expensive for companies looking to manage their operations more effectively. The cost of the review of divisions and processes followed by the installation costs can be extremely expensive for large companies. Additionally, new employee hiring or employee training related to the MIS can also add to the implementation costs. Employee Training Properly trained employees are a critical part of an MIS. The length and depth of the training may vary, making it difficult to estimate the cost of this training. Management will also have to account for the lost productivity during this training period. MIS Flexibility Once an MIS is created and installed in a company, it may prove to be an inflexible system. Making changes quickly to reflect fluctuating business operations may not be possible depending on the MIS style and functionality. While correcting policies operating procedures may be easy, company-wide changes may not be simple. Information Flaws The biggest flaw an MIS can have is pulling incorrect or inadequate information for management. This problem results in wasted time and money for the company, leading to another review of the MIS to correct the information flaws. MIS as Distraction MIS processes may provide little benefit as a management tool if they are allowed to get out of hand. This may happen if companies spend more time designing, implementing, reviewing and controlling the MIS. Companies should view the MIS as a behind-the-scenes operation;

allowing it to become a major distraction in the decision-making process cheapens the value of the MIS. It may also be a distraction when companies attempt to expand their current operations. Factors Contributing to Success of MIS: If a Management Information Systems (MIS) is to be success then it should have all the features listed as follows: The MIS is integrated into the managerial functions. It sets clear objectives to ensure that the MIS focuses on the major issues of the business. An appropriate information processing technology required to meet the data processing and analysis needs of the users of the MIS is selected. The MIS is oriented, defined and designed in terms of the users requirement and its operational vialibity is ensured. The MIS is kept under continuous surveillance, so that its openn system design is modified according to the changing information needs. MIS focuses on the results and goals, and highlights the factors and reasons for non achievement. MIS is not allowed to end up into an information generationn mill avoiding the noise in the information and the communication system. The MIS recognizes that a manager is a human being and therefore, the systems must consider all the human behavioral factors in the process of the management. The MIS recognizes that the different information needs for different objectives must be met with. The globalization of information in isolation from the different objectives leads to too much information and information and its non-use. The MIS is easy to operate and, therefore, the design of the MIS has such features which make up a user-friendly design. MIS recognizes that the information needs become obsolete and newn needs emerge. The MIS design, therefore, has a basic potential capability to quickly meet new needs of information. The MIS concentrates on developing the information support ton manager critical success factors. It concentrates on the mission critical applications serving the needs of the top management

Factors Contributing to Failures of MIS: Many a times Management Information Systems (MIS) is a failure. The common factors which are responsible for this are listed as follows: The MIS is conceived as a data processing and not as an information processing system. The MIS does not provide that information which is needed by then managers but it tends to provide the information generally the function calls for. The MIS then becomes an impersonal system. Under estimating the complexity in the business systems andn not recognizing it in the MIS design leads to problems in the successful implementation. Adequate attention is not given to the quality control aspectsn of the inputs, the process and the outputs leading to insufficient checks and controls in the MIS.

The MIS is developed without streamlining the transaction processing systems in the organization. Lack of training and appreciation that the users of then information and the generators of the data are different, and they have to play an important responsible role in the MIS. The MIS does not meet certain critical and key factors ofn its users such as a response to the query on the database, an inability to get the processing done in a particular manner, lack of user-friendly system and the dependence on the system personnel. A belief that the computerized MIS can solve all the management problems of planning and control of the business. Lack of administrative discipline in following then standardized systems and procedures, wrong coding and deviating from the system specifications result in incomplete and incorrect information. The MIS does not give perfect information to all the users in the organization.

Failure of management information systems can attributed to a number of reasons such as: Inadequate analysis. The potential problems, exact needs and constraints are not fully understood before the design or selection of a new system; Lack of management involvement in design. It is essential that all those expecting and needing to benefit from a new system are involved in its design. Without this involvement, any system is doomed to failure either by providing information which nobody needs (or, worse still, nobody understands) or management having expectations from a new system which cannot be delivered. Emphasis on the computer system. Selecting the right hardware and software is clearly essential as the basis for a modern computer system but appropriate procedures for handling both data input and output must be established before a system is implemented. The objectives of the new system need to be clearly thought out. Users often request the population of fields on a database for no explained reason and often request management reports which are neither useful nor read! Concentration on low-level data processing. One of the fundamental functions of a system within a company is the day-to-day processing of transactions, including sales and purchase orders, invoices, goods receipts and credit notes. When designing a basic system, the management information available from the system must be both easily accessible and easily understandable by users who may be neither computer literate nor managers. Lack of management knowledge of ICT systems and their capabilities. Managers require information for running companies or departments, and among other things, for producing budgets and forecasts. Managers must know what they want from a system but it cannot be assumed that these same managers have a full (or even a slight) grasp of the technology which will provide the information they need. Lack of teamwork. The needs of the accounts department, the marketing department, the sales department (home and export), and the storage and despatch departments are all likely to differ and an ICT manager needs not only to lead his team but also to be able to take on board the whole companys requirements. Teamwork needs leadership and a good leader is one who can convince all the members of a company team that the ICT system being designed is going to meet everybodys needs but not necessarily in quite the way that the different players may have pictured. Lack of professional standards. Clear documentation written in a language that not only the ICT manager can understand is essential for training, implementation and daily use of a new system. Operators need to know exactly what to do in their work (including what to do if they need to undo

some action); managers need to feel reassured that, if necessary, explanations are available to help them to interrogate the system for the information they require, and all people using the system must feel confident enough to be able to help others.

What Is Structured And Unstructured Decision?

Decision making ranges from simple to very complex decisions that fall along a continuum that ranges from structured to unstructured. Structured processes refer to routine & repetitive problems with standard solutions. While Unstructured are "fuzzy," complex problems with no clear-cut solutions. Structured decisions are the decisions which are made under the established situations while unstructured decisions are made under the emergent situation. Structured decisions are the programmable decisions and they are preplanned while unstructured decisions are creative and they are not preplanned. Structured decisions are made in the situations which are fully understood while in unstructured decisions the situations are uncertain and unclear. Structured decisions are generally made for routine tasks while unstructured decisions are made for a sudden one-shot kind of situations. Moreover, structured decisions are made for specified processes like specialized manufacturing processes while unstructured decisions are made for general processes. Structured decisions are those types of decision which are taken following a pre-established model (abstract representation of reality). No brain storming is required in taking decision rather establishing the model. Generally, line managers take these types of decisions according the models prepared by the top level managers to perform there job. Structured decision are decision made for programmed and preplanned situation yet unstructured are decision made for emergent they are not preplanned.for example if fire break there and then manager can make decision unplanned. Structured information is information ordered in a particular title and maybe a picture or graph. Unstructured is just a of information Formal Information System: A formal information system is based on the organisation represented by the organization chart. The chart is a map of position and their authority relationship,indicated by boxes and connected by straight lines. it is concerned with the pattern of authority, communication and work flow. This system defines very clearly the work-flow system, communication flow-down and the authority. The information flows in terms of policies, goals, strategies, rules and regulations from the top level management to the bottom level of management.. The information also flows from the bottom level management to the top level in terms of feedback, results of work done etc. way with a random piece

There are three categories of information related to the Formal Information Systems:

1. Strategic Information - relates to long-range planning policies. This information is achieved using the Decision Support System 2. Managerial Information - helps the middle level management in policy implementation and control. This information is achieved using the Management Information System 3. Operational Information -is the daily information needed to operate the business. This information is achieved using the Data Processing System

Informal Information System: The informal information system is employee based system design to meet personnel and vocational needs and to help in the solution of work-related problems. it also funnels information upward through indirect channels. In this way, it is considered to be a useful system because it works within the framework of the business and its stated policies. The informal information system should be employee based and cater to their development and solve their work related problem. Employee co-operation and the knowledge of the informal communication should help one to get a good Informal Information Systems in place.

SIMON MODEL OF DECISION MAKING Decision Making The word decision is derived from the Latin root decido, meaning to cut off. The concept of decision, therefore, is settlement, a fixed intention bringing to conclusive result, a judgment, and a resolution. A decision is the choice out of several options made by the decision maker to achieve some objective in a given situation. Herbert Alexander Simon (June 15, 1916 February 9, 2001) was an American political scientist, economist, sociologist, and psychologist, and professor Simon (1977) describes the process of decision making as comprising four steps: 1. Intelligence 2. Design 3. Choice 4.Later stage has been added with a view of improving the decision i.e. Review.

The intelligence stage encompasses collection, classification, processing, and presentation of data relating to the organization and its environment. This is necessary to identify situations calling for decision. The intelligence stage may involve, for example, comparing the current status of a project or process with its plan. The end result of the intelligence phase is a decision statement. The name of this phase, intelligence, can be confusing. Intelligence as we usually use the term informally, is talking about decision making, it is what we use after we know a decision must be made. Simon borrowed the term from its military meaning, which involves the gathering of information without necessarily knowing what it will lead to in terms of decisions to be made. In business decision making, we must often collect a great deal of information before we realize that a decision is called for. During the design stage, the decision maker outlines alternative solutions, each of which involves a set of actions to be taken. The data gathered during the intelligence stage are now used by statistical and other models to forecast possible outcomes for each alternative. Each alternative can also be examined for technological, behavioral, and economic feasibility. The design phase is where we develop alternatives. This phase may involve a great deal of research into the available options. During the design phase we should also state our objectives for the decision we are to make. In the choice stage, the decision maker must select one of the alternatives that will best contribute to the goals of the organization. The end product of this phase is a decision that we can carry out. In the review stage, past choices can be subjected to review during implementation and monitoring to enable the manager to learn from mistakes. Information plays an important role in all four stages of the decision process. Figure 1 indicates the information requirement at each stage, along with the functions performed at each stage and the feedback loops between stages.

Decision making in Simon's Model is characterized by limited information processing and use of rules. Simmons decision-making model there are four phases 1) Intelligence phase 2) Design phase 3) Choice phase 4) Implementation phase Initially the problem comes and we are in the intelligence phase thinking of the problem as it comes and then we try to find out what the solution to the given problem and then we move to design phase. In the design phase the way and method to solve the problem is thought and we actually try analyze the problem, we try to find the algorithms and the way that can actually solve the problem and hence we use the genetic algorithm to find the solution to the given problem .After finding the method which is to be applied to the given problem we move to choice phase and here the actual work of finding the best algorithm come .Here we try to find the best algorithm from the given set of algorithm we have the option of choosing the algorithms such as "ACO" algorithm which is called the ant colony optimization algorithm After deciding that genetic algorithm is the most suitable algorithm for the programming we move to the next step which is the implementation phase here the real implementation of the solution is done we implement the solution to the given problem by using the genetic algorithm according to the given problem.

For example, a manager finds on collection and through the analysis of the data that the manufacturing plant is under-utilized and the products which are being sold are not contributing to the profits as desired. The problem identified, therefore, is to find a product mix for the plant, whereby the plant is fully utilized within the raw material and the market constraints, and the profit is maximized. The manager having identified this as the problem of optimization, now examines the use of Linear Programming (LP) Model. The model used to evolve various decision alternatives. However, selection is made first on the basis of feasibility, and then on the basis of maximum profit. The product mix so given is examined

by the management committee. It is observed that the market constraints were not realistic in some cases, and the present plant capacity can be enhanced to improve the profit.

Characteristics of Information
The characteristics of good information are relevance, timeliness, accuracy, costeffectiveness, reliability, usability, exhaustiveness, and aggregation level. Information is relevant if it leads to improved decision making. It might also be relevant if it reaffirms a previous decision. If it does not have anything to do with your problem, it is irrelevant. For example, information about the weather conditions in Paris in January is relevant if you are considering a visit to Paris in January. Otherwise, the information is not relevant. Timeliness refers to the currency of the information presented to the users. Currency of data or information is the time gap between the occurrences of an event in the field until its presentation to the user (decision maker). When this amount of time is very short, we describe the information system as areal- time system. Accuracy is measured by comparing the data to actual events. The importance of accurate data varies with the type of decisions that need to be made. Payroll information must be exact. Approximations simply will not suffice. However, a general estimate of how much staff time was devoted to a particular activity may be all that is needed. Value of Information Information has a great impact on decision making, and hence its value is closely tied to the decisions that result from its use. Information does not have an absolute universal value. Its value is related to those who use it, when it is used, and in what situation it is used. In this sense, information is similar to other commodities. For example, the value of a glass of water is different for someone who has lost his way in Arctic glaciers than it is to a wanderer in the Sahara Desert The concept of normative value of information has been developed by economists and statisticians and is derived from decision theory. The basic premise of the theory is that we always have some preliminary knowledge about the occurrence of events that are relevant to our decisions. Additional information might modify our view of the occurrence probabilities and consequently change our decision and the expected payoff from the decision. The value of additional information is, hence, the difference in expected payoff obtained by reduced uncertainty about the future event. Information supports decisions, decisions trigger actions, and actions affect the achievements or performance of the organization. If we can measure the differences in performance, we can trace the impact of information, provided that the measurements are carefully performed, the relationships among variables are well defined, and possible effects of irrelevant factors are isolated. The measured difference in performance due to informational factors is called the realistic value or revealed value of information.