Management Information System (MIS) is a System or Process That

8/14/2019 Management Information System (MIS) is a System or Process That

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A management information system (MIS) isa system or process that provides theinformation necessary to manage an

organization effectively.The MIS is defined as an integrated system

of Man and Machine for providing theinformation to support the operations, the

management and the decision makingfunction in the organisation


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Enhance communication amongemployees.

Deliver complex material throughoutthe institution.

Provide an objective system forrecording and aggregating information

Reduce expenses related to labor-intensive manual activities.

Support the organization's strategicgoals and direction.


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Just like a heart to abody is MIS to anyorganization

MIS is expected to fulfill the

information needs of:

an individual,

a group of individuals and

management functionaries:

the managers and

the top management

Source 2

Source 1

Source 4Source 3

Destination 1

Destination 2

Destination 3

M.I.S.

MIS

collects information fromvarious sources, Processes & Sends it to the needy

destinations


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Top Manager

Middle Manager

Junior ManagerAn Officer

An Executive Officer

Clerical Personnel

An Assistant

Clerk

Structured

Decisions

Top Level

Bottom Level

Unstructured

decisions

Strategic

Planning

Short Term

Planning

More

responsibility &

Accountability

Less

Responsibility& accountability

Long TermPlanning

No Planning


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Top

Management

Goal setting, strategic planning, evolving the

business plans and their implementation

Type of

people

MiddleManagement

Short term planning, Target setting,

controlling the business functions. Use ofmanagement tools of planning and control.

Junior

ManagementProviding operation data for planning,scheduling & control, Decision making at

operational level

Clerical

PersonnelTransaction processing, answers to queries,

status of records and various references

Role of MISMIS helps in:


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SYSTEM DESCRIPTION ORGANIZATIONAL LEVEL

ACCOUNTS RECEIVABLE TRACK MONEY OWED TO FIRM OPERATIONAL

PORTFOLIO ANALYSIS DESIGN FIRM'S INVESTMENTS KNOWLEDGE

BUDGETING PREPARE SHORT TERM BUDGETS MANAGEMENT

PROFIT PLANNING PLAN LONG-TERM PROFITS STRATEGIC


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Strategic planning Management control Operation Control & Transaction Processing


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MIS & Support to Business

Business System MIS System

ComponentsRaw materials, plant &machinery, manufacturing,selling, accounting

Transactions of purchase,production & sales, receipts& payments

Input

Purchasing, manufacturing,

selling, accounting

Transaction processing &

data processing

Process

Quantity of production,sales, stock, income &profit

Computation of productionin numbers, sales in value,stocks in weight, income &

profit in rupees

Outputs

Profit Income less assigned costSensor

Expectation of profitversus actual profit

Algebraic comparisonmodule to compare incomevs. budgeted income; profit

vs. budgeted profit

Comparison unit


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Profit Budgeted profits of variousproductsStandard

Balance sheet Exception reports afteranalysis showing productsearning low profits

Feedback

Managing Director Marketing ManagerCorrective unitBusiness decisions Pricing, advertising,

promoting decisionsDecision to correctthe situation

Business goals & objectives Provide that informationwhich supports in achieving

the MIS goals & objectives

Goals & objectives


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Creates a structural database Knowledge base Information Bank

Better Understanding of

business:

Common terminology

Common terms Wider view, perspective Understanding how ones work

affect the entire organisation

Better sense of responsibility

All this information is made easily

available:

Saves Time & Money

MIS calls for:

Systemisation of

Business Operations: Streamlines the

operations Every body to follow

system and procedure

Thus Better discipline

MIS brings:

High degree of

professionalism


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Definition Financial Management is

management of finances of anorganisation in order to achieveits objectives.


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DefinitionA financial management informationsystem, or integratedfinancial

management information system(IFMIS), is an information system thattracks financial events andsummarizes financial information.


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Slow processing of payments

Slow processing of transactionInaccurate & untimely financialinformation and reports i.e.information is not recorded on

real time


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Inputs Strategic plan or corporate policies Contains major financial objectives and often

projects financial needs. Transaction processing system (TPS) Important financial information collected from

almost every TPS - payroll, inventory control,order processing, accounts payable, accountsreceivable, general ledger.

External sources Annual reports and financial statements of

competitors and general news items.


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OutputsFinancial subsystems

Profit/loss and cost systems Auditing

Internal auditing

External auditing

Uses and management of funds


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Regulatory Requirements

Written Policies & Procedures Documentation of Expenses

Provide a complete audit trail to facilitate

audits. Facilitate financial statement preparation.


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Provide information for budget planning,analysis and government-wide reporting.

Timely, accurate, and consistent data for

management and budget decision-making . Matching Requirements and In-kind

Contribution.

Reporting. Internal Controls


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CORE

NON-CORE IFMIS


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Processes large number of transactions inlimited periods of time across a countrywide network of offices.

Easy retrieval of financial information fordecision making e.g. financial informationcan be viewed where transactions aregenerated .

Availability of basic data required foreconomic management in a timely manner.


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Credit managers oversee the firms issuance ofcredit, establishing credit-rating criteria,determining credit ceilings, and monitoring thecollections of past-due accounts.

As a Corporate Inventory Manager (internallyknows as an Inventory Manager) you will beresponsible for maintaining optimum inventorylevels of assigned products as well as providing

information and support regarding inventory to allareas of the company.

Capital budgeting Director deals with net presentvalue as the rule for budgeting decisions


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Cost Accounting Manager function is to work closely withfunctional teams and provide support with relevant CostMIS, cost analysis and cost projections.

Financial Accounting Managers responsibilities include to

support the financial accounting manager in ensuring toeffectively manage payroll, accounts payable, accountsreceivable, treasury and reconciliation. You will alsosupport the development and implementation of financialsystems

Taxation Accounting Managers are responsible foroperations & management audits & Indirect Taxes. Thecore competencies lie in the area of reviews, operationalrestructuring, due diligence audits, accountings & IndirectTax compliances, planning & representation beforeauthorities.


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The VP of Finance is responsible for allbudgeting, forecasting and financial reporting aswell as the development of financial processes

and systems for Finance Departments futurebusiness needs. This position is also responsiblefor the management of professional relationshipswith our Insurance, Banking, Investments,Auditors and Tax Planning partners.


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The board of directors is the highest governingauthority within the management structure atany publicly traded company. It is the board's job

to select, evaluate, and approve appropriatecompensation for the company's chief executiveofficer (CEO), evaluate the attractiveness of andpay dividends, recommend stock splits, overseeshare repurchase programs, approve the

company's financial statements and recommendor strongly discourage acquisitions and mergers


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Business Plan MIS Plan

Business goals & objectives Management information system, objectives,consistent to the business goals & objectives

Business plan & strategy Information strategy for the business planimplementation playing a supportive role

Strategy planning & decisions Architecture of the Management Informationsystem to support decisions

Management plan for

execution & control

System development schedule, matching the

plan executionOperation plan for theexecution

Hardware & Software plan for theprocurement & implementation


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ROLES OF MANAGERS IN FMISROLES OF MANAGERS IN FMIS

DATA WORKERSDATA WORKERS

KIND OF SYSTEM GROUPS SERVEDKIND OF SYSTEM GROUPS SERVED

STRATEGIC LEVEL SENIORSTRATEGIC LEVEL SENIOR

MANAGERSMANAGERS

MANAGEMENT LEVEL MIDDLEMANAGEMENT LEVEL MIDDLE

MANAGERSMANAGERS

OPERATIONALOPERATIONAL

OPERATIONAL LEVELOPERATIONAL LEVEL

MANAGERSMANAGERS

KNOWLEDGE LEVEL KNOWLEDGE &KNOWLEDGE LEVEL KNOWLEDGE &

SALES & MANUFACTURING FINANCE ACCOUNTING HUMANSALES & MANUFACTURING FINANCE ACCOUNTING HUMAN

RESOURCESRESOURCESMARKETINGMARKETING


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OracleSAP

PeoplesoftMicrosoft SQLTallyMS Excel

Swanp


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STEP 1 THE NEEDSASSESSMENT

STEP 2 CREATE A ROADMAPSTEP 3 THE MODIFIED TENDERAPPROACH

STEP 4 IMPLEMENTATION


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Documents

Management Information System (MIS) is a System or Process That