Management Information System(Unit 2).pptx

BCA

1. Management Information System(Unit 2) BY:SURBHI SAROHA

2. SYLLABUS Concept of organizational planning The Planning Process Computational support for planning MIS planning Characteristics of control process The nature of control in an organization

3. Concept of organizational planning Organizational planning is the process of defining a company’s reason for existing, setting goals aimed at realizing full potential, and creating increasingly discrete tasks to meet those goals. Each phase of planning is a subset of the prior, with strategic planning being the foremost There are four phases of a proper organizational plan: strategic, tactical, operational, and contingency. Each phase of planning is a subset of the prior, with strategic planning being the foremost.

4. Four types of organization planning Strategic Planning Strategic planning covers long-term goals with all the necessary resources to achieve these goals. It typically includes a timeframe from 1 to 5 years.  Also, a well thought out strategic plan considers controllable and non-controllable variables, and how to adjust to them . Tactical Planning Tactical planning includes activity and implementation details on how your organization will reach strategic goals (a separate document). Also , tactical planning timeframes are typically short (less than one year). 

5. Cont …. Operational Planning Operational planning entails specific methods, procedures, and standards for different areas of an organization . For example, you would typically have an operational plan for the Marketing department, HR department, IT department, and so on. An operational plan also includes specific objectives and targets, which are then assigned to employees to carry out.  Contingency Planning Contingency planning covers alternative courses of action – typically outlining unusual and crisis situations. Rightly so, contingency planning is often associated with risk management, because a good contingency plan will address known and unknown risks.

6. The Planning Process Planning is ascertaining prior to what to do and how to do . It is one of the primary managerial duties. Before doing something, the manager must form an opinion on how to work on a specific job. Hence , planning is firmly correlated with discovery and creativity . But the manager would first have to set goals. Planning is an essential step what managers at all levels take. It requires making decisions since it includes selecting a choice from alternative ways of performance.

7. Planning Process ( 1) Setting Objectives This is the primary step in the process of planning which specifies the objective of an organisation , i.e. what an organisation wants to achieve. The planning process begins with the setting of objectives. Objectives are end results which the management wants to achieve by its operations. Objectives are specific and are measurable in terms of units. Objectives are set for the organisation as a whole for all departments, and then departments set their own objectives within the framework of organisational objectives. Example: A mobile phone company sets the objective to sell 2,00,000 units next year, which is double the current sales.

8. Cont …. (2) Developing Planning Premises Planning is essentially focused on the future, and there are certain events which are expected to affect the policy formation. Such events are external in nature and affect the planning adversely if ignored. Their understanding and fair assessment are necessary for effective planning. Such events are the assumptions on the basis of which plans are drawn and are known as planning premises. Example: The mobile phone company has set the objective of 2,00,000 units sale on the basis of forecast done on the premises of favourable Government policies towards digitisation of transactions.

9. Cont …. (3) Identifying Alternative Courses of Action Once objectives are set, assumptions are made. Then the next step is to act upon them. There may be many ways to act and achieve objectives. All the alternative courses of action should be identified. Example: The mobile company has many alternatives like reducing price, increasing advertising and promotion, after sale service etc.

10. Cont …. (4) Evaluating Alternative Course of Action In this step, the positive and negative aspects of each alternative need to be evaluated in the light of objectives to be achieved. Every alternative is evaluated in terms of lower cost, lower risks, and higher returns, within the planning premises and within the availability of capital. Example: The mobile phone company will evaluate all the alternatives and check its pros and cons.

11. Cont ….. (5) Selecting One Best Alternative The best plan, which is the most profitable plan and with minimum negative effects, is adopted and implemented. In such cases, the manager’s experience and judgement play an important role in selecting the best alternative. Example: Mobile phone company selects more T.V advertisements and online marketing with great after sales service.

12. Cont …. (6) Implementing the Plan This is the step where other managerial functions come into the picture. This step is concerned with “DOING WHAT IS REQUIRED”. In this step, managers communicate the plan to the employees clearly to help convert the plans into action. This step involves allocating the resources, organising for labour and purchase of machinery. Example: Mobile phone company hires salesmen on a large scale, creates T.V advertisement, starts online marketing activities and sets up service workshops.

13. Cont ….. 7) Follow Up Action Monitoring the plan constantly and taking feedback at regular intervals is called follow-up. Monitoring of plans is very important to ensure that the plans are being implemented according to the schedule. Regular checks and comparisons of the results with set standards are done to ensure that objectives are achieved. Example: A proper feedback mechanism was developed by the mobile phone company throughout its branches so that the actual customer response, revenue collection, employee response, etc. could be known.

14. Computational support for planning There are four types of computational methods for analysis and preparation of plans these are: Historical Data Analysis Forecasting Data Analysis Internal Data Analysis Output of result

15. Historical Data Analysis Historical data, in a broad context, is  data  collected about past events and circumstances pertaining to a particular subject. By definition, historical data includes most data generated either manually or automatically within an enterprise. Sources , among a great number of possibilities, include press releases,  log files , financial reports, project and product documentation and email and other communications.

16. Forecasting Data Analysis Forecasting is a technique that uses historical data as inputs to make informed estimates that are predictive in determining the direction of future trends. Businesses utilize forecasting to determine how to allocate their budgets or plan for anticipated expenses for an upcoming period of time . Forecasting is a method of making informed predictions by using historical data as the main input for determining the course of future trends. Companies use forecasting for many different purposes, such as anticipating future expenses and determining how to allocate their budget .

17. Internal Data Analysis Internal data is data retrieved from inside the company to make decisions for successful operations. There are four different areas a company can gather internal data from: sales, finance, marketing, and human resources . Internal sales data is collected to determine revenue and profit .

18. Output of result The input information for the MIS essentially comes from the processing of data on corporate transactions. The output information comprises different types of reports: periodic and scheduled reports, reports on specific requests, key business indicators, reports on exceptions and anomalies . 1. Scheduled reports:  produced on a regular basis (daily, weekly, or monthly) 2. Key Indicator Report:  Lists the important events from the previous day in brief 3. Demand Report:  Provides a specific report upon manager's request 4. Exception Report:  automatically generated when a scenario calls for management intervention or is exceptional

19. MIS planning An MIS is a computerized database of financial, administrative and programmatic information organized and programmed in such a way that it produces regular reports on operations for every level of management in an organization. The main purpose of the MIS is to give managers feedback about their own performance; top management can monitor the organization as a whole . Information displayed by the MIS typically shows "actual" data over against "planned" results and results from a year before; thus it measures progress against goals.

20. Below is a list of steps to follow when planning to adopt an MIS 1.Define Outcomes Investments in management information systems can help strengthen your project/organization, but there are limited resources. Make a clear articulated case to secure funding and prioritize the effort. • Identify tangible benefits that an MIS will bring to your organization • Define the scope of the MIS (organizational level, regional level, country level ) • Develop measurements to assess whether MIS is successful

21. Cont …. 2.Form your team The successful implementation of an MIS requires a combination of people and technology. • Determine resources and skills needed for each of the three phases of an MIS (develop, scale, and sustain ) 3. Define what your system needs to do Documenting system requirements and communicating them well is a crucial . Lack of understanding between the future users of a system and the people who design it is one of the main causes of frustration, delays and cost overruns in IT projects.

22. Cont … Conduct a self-inventory to map out what information systems and reporting relationships already exist • Develop shared measures and outcomes (if they don’t exist already) • Establish common benchmarks, and harmonize reporting requirements • Describe high-level business requirements and how key types of individuals (e.g. managers, directors, auditors, donors) will use the MIS data. • Determine technical requirements for your specific context. E.g., if electricity and/or Internet connectivity is a problem in your context, plan for: o Offline data entry o Automatic transmission of data to a central database when communication networks are available • Identify how newly computerized processes link to retained manual and paper-based processes

23. Cont … 4. Find the right solution :There is a range of potential solutions depending on your resources and needs. This includes buying or building your system, selecting open-source or proprietary systems. • Identify the best system for your organization depending on your resources and expected use. Software models can range from custom-developed software (i.e. build a software system from scratch) to Software as a service (SaaS) (i.e. a database and application hosted on remote servers, and software is sold (or offered freely) as a service that can be contracted per user and per month or year).

24. Cont …. 5. Select the right vendors Asking the right questions when selecting a vendor will help you select the best vendor for your needs. • Evaluate the merit of each proposal • Evaluate the cost of each proposal and select a vendor • Make a contract or memorandum of understanding

25. Cont …. 6..Estimate implementation and operating costs Estimate project cost for pilot, scale up, and maintenance • Pilot: the functional, technical, and organizational complexity of the project drives costs. Costs do not vary significantly for a large or a small country . • Scale: the number of future users and the cost per user to deploy it are the most important variables. The cost per user depends on the way in which users will access the system (for example, desktop computer, mobile phone, paper) and their training needs. • Sustain: Apart from the number of users, the selected technology is critical here. For example, any solution that requires local software installation and maintenance will be more expensive than a centralized system, such as a web-based or cloud system.

26. Cont …. 7. Create an implementation plan Develop an implementation plan for the MIS development, pilot, and scale up. • Define work plan for development, pilot. and scale up. Don’t forget to include training of MIS users. • Track milestones

27. Cont …. 8.Understand and manage project risks The seven steps above should lower project risk by aligning requirements to organizational objectives, understanding costs, planning appropriately, and choosing the right vendors. In addition, consider the following type of risks below. • Lack of governance: Many cite lack of leadership buy-in as the most important factor for project failure.

28. Cont ….. • Poor management: The management team lacks the technical capacity or the organizational authority to provide the project the stability it needs. • Development risk: Relates to changing user requirements and a misunderstanding of the technology that is being used. • Deployment risk: Stems from a failure to manage the changes that will affect the organization because of the new information system. • Operational risk: Arises when the organization is not ready to support newly introduced technologies over the longer term.

29. Characteristics of control process The Controlling process assures the management that the performance rate does not deviate from its standards.  The controlling Process consists of five steps:  Setting the standards. Measuring the performance. Comparing the performance to the set standards  Determining the reasons for any such deviations which is required to be paid heed to.  Take corrective action as required. Correction can be made in regards to changing the standards by setting them higher or lower or identifying new or additional standards in the department. 

30. The basic control process includes the following steps: Setting performance standards:  Managers must translate plans into performance standards. These performance standards can be in the form of goals, such as revenue from sales over a period of time. The standards should be attainable, measurable, and clear. Measuring actual performance:  If performance is not measured, it cannot be ascertained whether standards have been met. Comparing actual performance with standards or goals:  Accept or reject the product or outcome. Analyzing deviations:  Managers must determine why standards were not met. This step also involves determining whether more control is necessary or if the standard should be changed. Taking corrective action:  After the reasons for deviations have been determined, managers can then develop solutions for issues with meeting the standards and make changes to processes or behaviors.

31. The nature of control in an organization 1. Controlling is a  goal-oriented  function of management. It aims at ensuring that the resources of the organisation are used effectively and efficiently for the achievement of pre-determined organisational goals.  2. Controlling is a  continuous  process. It means that once the actual performance and standard performance of a business are compared and corrective actions are taken, the controlling process does not end. Instead, the firms have to continuously review the performance and revise the standards. 

32. Cont …. 3. Controlling is  all-pervasive.  It means that the controlling function is exercised by the firms at all levels of management. The extent of control and nature of the function may vary at every level. Also, a controlling process is required in both non-business and business organisations .  4. Controlling process is both a  forward-looking  and  backward-looking  function. As a forward-looking function, it aims at improving the future performance of an organisation on the basis of its past experiences. However, as a backward-looking function, it measures and compares the actual performance and planned performance (fixed in past) of the organisation . 

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