Information Technology and Management - Research Paper Example

Management Information System 30 November 2009 Management Information Systems The present age is age of information technology and IT is playing a major role in every walk of life. The area of business is also extremely influenced by the information technology. At the present organizations have more enhanced ways of the business management and handling through effective information technology implementation. The implementation of information systems has become essential for every organization that handles overall organizational business information and management process. This research will assess the implementation of management information systems regarding the effective business resources and corporate management. The main aim of this research is to spotlight the new emerging trends of the business and corporate management. This research will assess the facilities, tools, advantages, and enhancements that can be brought into a business through this system (MIS) implementation. The main focus of this research will be on the detailed analysis of the strategy support brought by the implementation of the MISs in the businesses and organizational structures. Management Information System Management information systems have turned out to be major part of every business that facilitates extensive management of the organizational data and information processing, storage, handling and management. It is really difficult to handle the organizational management tasks without management information systems facility. The introduction of basic terms is necessary before defining management information system. Data are combination of unrefined facts representing events taking place in organizations or the physical environment prior to they have been structured and managed into a structure that people can recognize and utilize. Data can include text, numbers, images and videos. On the other hand, information refers to data that have been transformed into a structure that is important and functional to human beings (Shelly, Cashman and Vermaat 6), (Norton 4) and (Laudon and Laudon 7). According to (Turban, Rainer and Potter 18), an information system gathers, operates, stores, evaluates, and distributes information for a particular function. Similar to any other system, an information system consists of inputs (such as instructions and data) and outputs (reports, calculations). It performs operations on the inputs by using technology like PCs and develops outputs that are delivered to users or to other systems by means of electronic networks (Turban, Rainer and Potter 18). “The term information system can be described technically as a collection of interrelated components that bring together, process, store, and distribute information to carry decision making and control in an organization” Information systems keep and maintain information about important people, places, and things inside the corporation or in the set up surrounding it (Laudon and Laudon 7) and (Hoffer, Prescott and McFadden 429). According to (Shelly, Cashman and Vermaat 620), “an information system consists of hardware, software, data, workers, and methods that work in collaboration to turn out functional and valuable information”. An information system helps out in every day, short-range, temporary, and long range activities of users. Various examples of users consist of store clerks, sales representatives, accountants, and supervisors, managers of construction projects, executives, and customers (Shelly, Cashman and Vermaat 620). However, management information system (MIS) is an information system that produces correct, on time, and structured information, so managers (construction managers) and other users can make decisions, supervise activities, solve problems, and follow development (development of projects) (Shelly, Cashman and Vermaat 727). Also according to (Whitten, Bentley and Dittman 47), a management information system is a function or use of information system that offers for management oriented reporting. These reports are typically developed or produced on a predetermined schedule and come out in a prearranged structure (Whitten, Bentley and Dittman 47). A management information system is a collection of software applications that helps managers to collect, systematize, and evaluate information concerning a workgroup, department, or a whole organization. These systems are designed and developed to meet the requirements of three diverse classes of managers, executives, middle managers, and front line managers by creating an assortment of scandalized reports drawn from the organization’s database. A well-organized management information system summarizes huge amount of organization’s data into information that is functional to each type of managers (Norton 460). According to (Worthington 22), a management information system is an structured group of people (staff, users, customers), actions, software, databases, and devices utilized to present customary information to managers and decision makers. Therefore, the concentration of a management information system is mainly on working effectiveness. Moreover, production, marketing, finance, and additional useful areas are maintained by management information systems and connected through a central database (Worthington 22), (Stair and Reynolds 23) and (Hutchinson and Sawyer). Schauland (2009) defines MIS or management information system as a subset or division of the entire internal controls of a business comprising the application of documents, people, procedures and technologies by management accountants to resolve business difficulties like that costing service, a product or a business-wide policy (Schauland). MIS systems are different as compared to customary/regular information systems. These regular information systems are utilized to examine other business information while the management information systems are applied in analysis of the information systems to the operational activities in the business. According to Schauland (2009), management information system refers to the set of data and information management techniques combined to the carry or automation of human decision making (Schauland). Brien (1999) has defined management information system as a planned structure of the processing, gathering, distributing and storing data in the outline of information required to carry out the functions and main activities of business and organizational management. Brien (1999) has presented that MIS is a documented report of the business and corporate activities those were executed and planned (O’Brien). As quoting an example Kotler & Keller (2006) describe management information system in the form of marketing information system group of equipment, users and procedures to collect, evaluate, sort, distribute and evaluate the required, accurate and timely business information to and higher business management and marketing decision makers for taking effective business decision (Kotler and Keller). MIS Technology overview Udick (2009) has outlined that the emergence of the management information systems technology started in the 1960s when the computer usage became more widespread and business managers recognized the capability to automate the business records as well as augment the efficiency of business procedures (Udick). Udick (2009) has outlined that main function of the management information systems is to carry out the process of business decision-making by offering management of critical data. They provide the capability to advance the business/organizations communication, support short- as well as long-term business objectives, diminish human labor as well as deal out complicated information (Udick). About the main features of the management information systems it is stated that main critical components of a MISs are computer hardware that are used to gather and track the business and corporate information and use the manual data processes for manipulating or entering the data. Udick (2009) has stated about the main type of management information systems and outlined that MISs are able to support a lot of aspects of a business comprising financial, human resources, technology resources, accounting functions and general data storage (Udick). The management information systems are extensively utilized to support business management by means of making decisions that influence the entire features of business operations. MIS Structure The structure of the management information systems is based on very easy and simple infrastructure. Management information system can be viewed as a way of changing or transforming business and corporate data, that are utilized in decision-making procedures (Harizanova). We can have any kind of transaction controls system on the front end or on the initial level of management information system. At here we gather basic business data and information. This data is transformed, altered and processed according to business needs at the second level of business system. Then at the last level we have the phase of the business decision making. Here business executives and higher management utilize the facility of management information system to take wise, on time, correct and effective business decision (Stair and Reynolds). Applications of MIS The main need and application of the management information systems is to improve the business performance through the implementation of the one time and effective business decisions. The technology of the management information system is a decision support system that offers the enhanced facility to the business decision maker to take wise and effective business decisions (BestPriceComputers). There are two basic areas or applications of the management information systems: Strategy Support As computers are not proficient to generate business strategies themselves they would be able to facilitate management in understanding the outcomes of their policies as well as support them in effective decision-making. Management information systems can be utilized to convert data into information that is really helpful and functional for business decision making (BestPriceComputers). In addition, management information systems offer a helpful job in that they can gather into consistent business reports from the huge and uncontrollable capacity of data that would otherwise be insignificant to business or organizational decision makers. Management information systems can as well utilize these raw business data to run simulations or other theoretical situations that answer a variety of ‘what if’ questions concerning modifications in business or organizational strategy. For example management information systems can offer predictions regarding the outcomes on sales that a change in products price. These DSS or decision support systems present additional knowledgeable business decision making inside an enterprise than would be probable without management information systems (BestPriceComputers). Data Processing Management information systems not only facilitate for the collation of huge amounts of organizational/business data, however they as well offer an important time saving that is the main advantage to the business personnel. Where in the past few years before the implementation of the management information systems technology business information had to be manually processed intended for analysis and filing it can currently be entered rapidly as well as easily onto a computer through a data processor, permitting for quicker decision making as well as faster reflexes for the business as a whole (BestPriceComputers). MIS advantages This section will outline some main advantages of the management information systems: from (Management-Hub), (Laudon and Laudon), (Worthington), (Turban, Rainer and Potter), (BestPriceComputers), and (Antonine-Education): It helps in planning: Management information system develops and enhances the quality of business through offering applicable information for effective business decisions making. Because of enhancement in the volume and complexity of business, the organizational managers have lost personal contact by the scene of business operations. Management information system facilitates in reducing business information overload. Management information system transforms the huge amount of data into small and more precise shape as well as this also minimizes the confusion that can take place when managers are flooded through exhaustive business facts. Management information system supports decentralization: the decentralization of authority is probably when there is a system for observing business operations at smaller levels. Management information system is effectively utilized for determining business performance as well as making essential transformation in the organizational strategies and procedures. Management information system brings co-ordination: The technology of the MIS offers advantages regarding the incorporation of focused activities by keeping every department responsive to the difficulty as well as requirements of other organizational departments. It joins the entire decision centers in the business. Management information system makes control easier: the technology of the management information system serves like a link among administrative control and planning. It develops the capability of management to appraise and enhance business performance. Management information system facilitates in business data and information process, assembles, retrieves, stores, evaluates and disseminates the information for business decisions. MIS significance to HR There are five classical functions of a business manager and administration those are effectively handled and managed through the new technology of the MIS. In below given table I have outlined the impacts of the MIS technology on these areas and potential influences on workforce/HR/Management/Administration: (Antonine-Education) No. Main areas of Business Influence through MIS 1 Planning Easier and less complex planning as compared to the old business data and information. 2 Organization Effectively business resources organization like that space, people, equipment and services. 3 Coordination Offers the coordination among all the activities of various departments. 4 Decision-making Facilitates in effective and on-time business decision making those decision can be related to the organisation, services made or products or sold by the employees and offering them the use of I.T. 5 Controlling Offers the management regarding the supervising and monitoring the activities of others. The function of a management information system is to offer a corporate managers the plenty of information to formulate informed decisions as well as facilitate them to perform the above mentioned functions (Antonine-Education).  Conclusion Management information systems have become the important component of almost every organization (small, medium, and large). This paper has presented detailed analysis of the management information system technology and its detailed overview. This research has outlined a comprehensive overview of the business and organisational processes effective management through the management information system technology. The main focus in this technology has given to the enhanced strategic support and enhanced facilities offered to the business personnel. I hope this research will offer a deep insight into the overall analysis of the management information system technology. 10- Bibliography 1. Antonine-Education. "Topic 2 Management Information Systems." 2009. 26 November 2009 . 2. BestPriceComputers. "What are Management Information Systems?" 2009. 30 November 2009 . 3. Businessdictionary. "management information system (MIS)." 2009. 30 November 2009 . 4. Harizanova, Adriana. "Management Information System in tailoring industry." 2003. Academic Open Internet Journal www.acadjournal.com Volume 9. 30 November 2009 . 5. Hutchinson, Sarah E. and Stacey C. Sawyer. Computers, Communications, Information A users introduction, 7th Edition. New York: Irwin/McGraw-Hill, 2000. 6. Kotler, Philip and Kevin Lane Keller. Marketing Management -12th Edition. Pearson Education, 2006. 7. Laudon, Kenneth. C. and Jane. P. Laudon. Management Information Systems, Sixth Edition. New Jersey: Prentice Hall , 1999. 8. Management-Hub. "Various Advantages of Information Management Systems." 2009. 30 November 2009 . 9. Norton, Peter. Introduction to Computers, Fourth Edition. Singapore: McGraw-Hill, 2001. 10. O’Brien, J. Management Information Systems – Managing Information Technology in the Internetworked Enterprise. Boston: Irwin McGraw-Hill., 1999. 11. Schauland, Derek. "What are Management Information Systems?" 2009. 30 November 2009 . 12. Shelly, Cashman and Vermaat. Discovering Computers 2005. Boston: Thomson Course Technology, 2005. 13. Stair, Ralph M. and George W. Reynolds. Principles of Information Systems, Sixth Edition. Toronto : Thomson Learning, Inc., 2003. 14. Turban, Efraim, R. Kelly Rainer and Richard E. Potter. Introduction to Information Technology, 3rd Edition. New York: Wiley, 2004. 15. Udick, Sarah. "What is the Advantage of a Management Information System?" 2009. 30 November 2009 . 16. Whitten, Jeffrey L., Lonnie D. Bentley and Kevin C. Dittman. Systems Analysis and Design Methods, 5th Edition. New York: Irwin/McGraw-Hill, 2000. 17. Worthington, Paul. Introduction to Information Systems. Singapore: Thomson, 2003. Read More