Management Information Systems

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Concept Note on Management Information System /

INFORMATION SHARING SYSTEM

I. Background

Information systems are both technical and social in nature. Managers must understand the relationship between the technical components of an information system and the structure, functions and work culture of. Builders of information systems should consider management objectives and decision-making as well as the impact these systems will have on the well being of the people and society. In this chapter places information systems have to be placed in the context of organizational needs at various levels of management.

II. Information System

An information system can be defined technically as a set of interrelated component that collect (or retrieve), process, store, and distribute information to support decision making and control in an organization. In addition to supporting decision making, coordination, and control, information system may also help managers and workers analyze problems, visualize complex subjects, and create new product.

Information systems contain information about significant people, places and things within the organization or the environment surrounding it. By information we mean data that have been shaped into a form that is meaningful and useful to human beings.

Data, in contrast, are streams or raw facts representing events occurring in organizations or the physical environment before they have been organized and arranged into a form that people can understand and use.

Three activities constitute an information system to meet organizational needs for making decisions, controlling operations, analyzing problems, and creating new product and services. These activities are input, processing and output. - Input captures or collects raw data from within the organization or from its external environment. - Processing converts this raw input into a more meaningful form. - Output transfers the processed information to the people or activities where it will be used.

Information also requires feedback, which is output that is returned to appropriate members of the organization to help them evaluate effects and impact or track flow of inputs and their transformation into outputs.

III. Technology

Information systems technology is one of many tools available for organizations, for coping with change. Information technology is the glue that holds the organization together. It is the instrument through which management controls and creates, and it is an arrow in the manager’s quiver.

Computer hardware is the physical equipment used for input, processing and output activities in an information system. It consists of the following: the computer processing unit; various input, output and storage devices; and physical media to link these devices together.

Computer software consists of the detailed programmed instruction that control and coordinate work of the computer hardware component in an information system.

Storage technology include both the physical media and storing data, such as magnetic or optical disk or tape, and the software governing the organization of data on these physical media, telecommunication technology, consisting of both physical device and software, links the various pieces of hardware and transfer data from one physical location to another.

IV. The Organization & Information System

Information systems are a part of organizations. The key elements of an organization are its people, structure and operating procedures, politics and culture. An organization coordinates work through a structured hierarchy and formal, standard operating procedure. The hierarchy arrange people in a pyramidal structure of rising authority and responsibility. The upper levels of the hierarchy consist of managerial, professional, and technical employees, while the lower levels consist of operational personnel.

Standard Operating Procedures (SOPs) are formal rules for...
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