An important element of MIS is database.Ī database is a non-redundant collection of interrelated data items that can be processed through application programs and available to many users. It should handle queries as quickly as they arrive. It is a set of information processing functions. They use the results of transaction processing and some other information also. These systems assist lower management in problem solving and making decisions. Transaction processing systems provide speed and accuracy, and can be programmed to follow routines functions of the organization. These include calculation, storage and retrieval. This provides high speed and accurate processing of record keeping of basic operational processes. Like employee new employee, maintaining their leave status, maintaining employees accounts, etc. However, there are some transactions, which are common to almost all organizations. Booking, canceling, etc are all transactions. For example, take a railway reservation system. Transactions differ from organization to organization. Transaction can be any activity of the organization. TPS processes business transaction of the organization. Some examples of information provided by such systems areprocessing of orders, posting of entries in bank, evaluating overdue purchaser orders etc. Due to its capabilities to provide information for processing transaction of the organization, the information system is known as Transaction Processing System or Data Processing System. This kind of information is required at the operational level for carrying out the day-to-day operational activities. The third category of information is relating to the daily or short term information needs of the organization such as attendance records of the employees. And due to its vastness, most of the big organizations have separate MIS departments to look into the related issues and proper functioning of the system. Due to its capabilities to fulfill the managerial information needs of the organization, Management Information Systems have become a necessity for all big organizations. Management information system (MIS) caters to such information needs of the organization. Information like sales analysis for the past quarter or yearly production details etc. The information required at this level is used for making short term decisions and plans for the organization. The second category of information required by the middle management is known as managerial information. The information systems that provide these kinds of information are known as Decision Support Systems.įigure 1.2 - Relation of information systems to levels of organization This information is not required by the lower levels in the organization. For example the trends in revenues earned by the organization are required by the top management for setting the policies of the organization. Strategic information is the information needed by top most management for decision making. Accordingly the information can be categorized as: strategic information, managerial information and operational information. The information needs are different at different organizational levels. Three major information systems areįigure 1.2 shows relation of information system to the levels of organization. Also depending upon different levels in organization information systems differ. Information systems differ in their business needs.
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