gh raisoni mba 1st year class3

Unit 3: Introduction to Information Systems and MIS

Revision :

• What is ISs?• What is TPS?• What is OAS?• What is DSS?• What is ESS/EIS?• Difference between MIS,DSS&ESS?

Agenda• MIS in functional areas like : Production, HR, Finance and

Marketing.

MIS in functional areas like :• Production• HR• Finance • Marketing.

Overview

Report Generator

Finance Department

HR Department

Marketing Department

Production Department

Before moving further

Lets understand it by practically

Practiced in class

MIS in Production• Production means transformation of Raw

materials into finished products for sale.

• According to E. L. Brech “Production Management is the process of

effective planning and regulating the operations of that section of an enterprise which is responsible for the actual transformation of materials into finished products”.

ROLE OF MIS IN PRODUCTION

OPERATIONAL

TACTICAL

STRATEGIC

Strategic Information This type of information is required at the top or senior manager level.

A strategic decision by the production function of the management is a New Plant Location.

A strategic decision for the marketing function is a survey of competition and the resulting strategy of gaining market share.

Tactical information: This type of information is required at the middle level or the

managerial level. this level is responsible for taking certain management related decisions.

At the tactical one could visualize a production bottleneck analysis in a manufacturing environment. such analysis would call for senior management involvement by people with years of experience.

Operational or Lower Level Information

This information is required at the lower level of an organization.

Lower level means the clerical staff of the organization.

Daily scheduling refers to assignment of jobs.

Production Control It has to be ensured that plant , machines and equipment

that have high investment are fully utilized.

There are always some jobs which have to be pushed through the production programmed by way of scheduling and loading the job on machines.

What is Finance• Art and Science of managing money• Finance is concerned with the process, institutions,

markets and instruments involved in the transfer of money among and between individuals, business and governments

• It can be subcategorized into 3 types:– Personal Finance– Corporate Finance– Public Finance

Uses of MIS in Finance• General Ledger• Cash Management• Budget Planning• Financial Reporting

General Ledger• Automatically updates all the transactions in the

General Ledger• Simultaneous updating of accounts such as sales,

inventory and accounts receivable, reduces errors

• Also provides an accurate and permanent record of all historical transactions

Cash Management• Cash Management refers to the control, monitoring and

forecasting of cash for financing needs• Accurate records also help in monitoring cost of goods sold• Can help pin point areas that eat up cash flow such as

inventory costs, high raw material costs or unreliable sales

Budget Planning• Financial budget planning uses proforma or projected

financial statements that serve as formal documents of management's expectations regarding sales, expenses and other financial transactions.

• MIS in finance helps organizations evaluate "what if" scenarios.

• It is helping in choosing appropriate financial goals

Financial Reporting• Enables companies to generate multiple financial reports

accurately and consistently

• Compliance with Government regulations as well as auditing requirements is also easier.

Source of Financial Data in MIS• Transactional Data

– (This data is captured through TPS.)• Forecasting Data

– (which can be used to compare the actual transaction with the anticipated as per the forecast)

• Strategic Plans– (measurement scale for any kind of financial

transactions)• Financial Intelligence Data

– (to gather data from the financial community, like banks, Government, stock market, etc. )

Human Resource Management• Human resource management has become more

complex due to the fast growth in specialized occupations

• The need to train and promote highly skilled employee and the growing variety of benefit program

• HRIS aids in integrating the information generated by various departments of the organizations.

HRMIS Classifications• Employee Record Management• Promotion and Recruitment• Training• Evaluation• Compensation and benefit management

Employee Record management• ISs facilitate employee record management.

• HRD must keep employee personal record to satisfy both external and internal regulation

Promotion and Recruitment• To select the best qualified person for the

position, (among applicants and existing employee)

• The company uses software that searches the web for resume and then matches qualified candidate with job opening.

Training• Improving Employee skills

• Training at each stage of development

Evaluation• Supervisor must periodically evaluate the

following– Technical ability– Communication skill– Professional conduct– General behavior of employee

Compensation and benefit management

• Program can easily calculate weekly ,monthly and hourly pay (salary)

• Special software help HR department manage benefits such as – Health insurance– Life insurance– Retirements plan– Sick and leave days

MIS in Marketing

• Designed specifically for managing the marketing aspects business

• Intended to bring together disparate items of data into a coherent body of information

Feature of MIS in Mktg• Continuous System

• Permanent and continuous system of collecting information

• Basic Objective• To provide the right information at

the right time to the right people to help them take right decisions

Feature of MIS in Mktg• Used by all levels

• Used by all three levels of management

• Sources• Collects information from both

internal and external sources

Feature of MIS in Mktg• Collects Marketing Information

• Information about consumer competition, marketing environment, etc.

• Helps in Decision-Making• Supplies up-to-date and accurate

information that helps take quick and right decisions

Q & A

Now you can answer• Describe MIS in HR ?• Describe MIS in Marketing?• Describe MIS in Finance?• Describe MIS in Production?