MIS Subsystems and its types

MIS Subsystems
Hierarchical Relations of Subsystems
Types of Subsystems
Organisational Function Subsystem
Activity Subsystem
Organisational Function Subsystems
Organisational Function
Production Subsystem
Marketing Subsystem
Personnel Subsystem
Finance Subsystem

1. Management Information Systems MIS SUBSYSTEMS AND ITS TYPES Prepared By: Mohammed Jasir PV Asst. Professor NBS, Koratty Contact: 9605 69 32 66

2. ‘MIS is a system that aids management in making, carrying out and controlling decisions’. - Jerome Kanter 2

3. Sub Systems It is difficult to comprehend a complex system as a whole So we need sub systems of manageable size Sub systems form a hierarchical structure

4. Sub- System System Sub – Sub- System

5. Hierarchical Relations of Subsystems

6. Types of Subsystems Two approaches to define subsystem Organisational Function Subsystem : Supports the various functions of an Organisation. Eg. Marketing, Production, Personnel etc. Activity Subsystem : Supports the activity for which they are used. Eg. Transactions, Operations etc.

7. MIS Subsystems

8. Organisational Function Subsystems Major Functional Subsystems Some Uses Marketing IS Sales forecasting, Sales planning, Sales analysis Manufacturing IS Production planning & scheduling, cost control analysis Personnel IS Salary Admn ., Planning HR requirement, performance analysis Accounting IS Financial Analysis, cost analysis, Capital planning, etc. Logistics IS Planning & control of Purchasing, inventories, distribution. Information Processing System Planning of Information System, cost – effectiveness analysis Top Management System Strategic Planning, resource allocation

9. Activity Subsystems Activity Subsystems Some Uses Transaction Processing System Processing of orders, shipments, & receipts Operational Control System Scheduling of activities and performance reports Management Control System Formulation of Budgets & resource allocation Strategic Planning System Formulation of Objectives & strategic plan

10. Organisational Function Each function has four activity subsystem such as Transaction Processing Operational Control Managerial Control Strategic Planning

11. Production Subsystem Transaction Processing Production orders Finished part tickets Time keeping tickets Operational Control Requires detailed reports comparing actual performance with schedule and control Managerial Control Summary reports which compare overall planned performance with actual performance Strategic Planning Requires Information regarding M&A, alternative Manufacturing approaches, automation alternatives etc..

12. Marketing Subsystem Transaction Processing Sales orders Promotion Orders Operational Control Sales force Day to day scheduling of sales Periodical analysis of sales volume byb region, product, customer etc.. Managerial Control Compare overall performance against marketing plan Strategic Planning New market and marketing strategies, competitors, income projections, demographic, projections, technological developments

13. Personnel Subsystem Transaction Processing Employment requisitions, job descriptions, training specifications, personnel data, pay rate changes, pay cheques, termination process Operational Control — Hiring, training, terminations, issuing benefits Management control — Cost of recruitment, cost of training, salary paid etc. Strategic planning — For evaluating alternative strategies for recruiting, salary, training, benefits and retaining employees

14. Personnel Subsystem Transaction Processing Employment requisitions, job descriptions, training specifications, personnel data, pay rate changes, pay cheques, termination process Operational Control — Hiring, training, terminations, issuing benefits Management control — Cost of recruitment, cost of training, salary paid etc. Strategic planning — For evaluating alternative strategies for recruiting, salary, training, benefits and retaining employees

15. Finance Subsystem Transaction Processing — Processing credit applications, sales billing, collection, payment of vouchers, cheque etc. Operational Control — Daily collection reports, error reports, record of processing delay, financing day to day affairs. Management control — Budgeted and actual financial resources, cost of processing account data Strategic Planning — Evolve alternative strategy to finance the firm, long range tax planning, cost accounting and budgeting

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