JAIIB | Paper 4 | RBWM | Module B | Unit 11 | Management Information Systems | New Syllabus | BBC

Unit 11: Management Information Systems

Management Information System is an integrated man machine system that provides information to support the planning and control functions of managers in an organisation.
Management Information System is a set of combined procedures that gathers and produces reliable, relevant, and properly organized data that supports the decision making process of an organization.

Management Information System (MIS) consists of three words,
• Management
• Information
• System

Management is viewed as a function, a process, a profession and a class of people.
It refers to the kind of task and activities that are performed by managers.
The specific nature of the activities is determined by such managerial functions as planning, organising, directing, leadership and controlling.
Information is the result or product of processing data. Information can be defined as the data which is organised and presented at a time and place so that the decision-maker may take necessary act.
System is a group of elements or components joined together to fulfil certain functions. It is made up of sub-system.
The systems are either natural or man- made.

The Main Elements Of MIS
An integrated system to give service to many users.
The computer system linking some of information software via a database
User-machine interface responding to the temporary and immediate searches.
Presenting the information to all management level.
Supporting the operation and decision making.
Role Of Management Information Systems
Two main roles are played by MIS in decision making by the managers.
First it helps the managers to take decision based on the information being prepared.
Second when the decision making and decisions are fixed and only the input data change, it acts as a suitable repeat to support different types of managerial decisions.
It means that MIS is the tool that as the organizational information source provides the required information of the managers and makes them prepared for their decision making.
The managers use MIS as a tool to define the problems being faced.

Role Of MIS In Banking Industry

A bank is understood as a place where the financial services such as mainly deposit/ savings and providing credit to the customers are offered.
The scope of this service in today’s world is expanded to a “Financial Services Super Shoppe” where the banks have become an instrument in providing financial assistance to some activities as a policy or by regulation or for meeting sociology-economic obligations.
In banking also, the concept of the financial product has come in.

The customers choose a bank mainly on the following three factors:
The ease of doing business.
The quality of personnel and service.
The range of the financial services.

Designing MIS For A Bank
Customer database: The service expectations and perceptions revolve around the following factors:
• Customer — Individuals, Company, Institutions, etc.
• Operator — Housewife, Employee, The officer of the organization.
• The Range of Service — Savings, Credit checking/ credit history and payment, other financial services.
• Class of Customers —Income group, Corporate Bodies, etc.
• Working hours —Morning, Afternoon, Evening, etc.

Service to the account holders: The customers (account holders) need constant advice on the status and its operations. Most of the customers use their account for routine payments affecting the balance. Many times the account holds a large amount and it is not transacted for any purpose.

The MIS should give following reports to the management:
• The non-moving account.
• The account was having the balance of more than, say ₹50, 000.
• The account was going down below minimum balance.
• The regular payments not made.
• The routine credits not arrived.
• The defaults on loan repayment.
• The delays on crediting cheque amounts.
• A sudden rise and fall in the account movement.

Service for business promotions: The bank finances can be utilized in some ways to increase the banking operations by offering credit to the right kind of customers.

The index monitoring system: One more feature of the MIS is to monitor the variety of indices and ratios related to banking operations, which are internal to the banking business.

Human resource upgrade: There is a lot of human aspect in the banking operations. With computerization, the service may become faster or quicker, but still, it requires a human touch and skill.

Issues Related To Management Information System (MIS)

Humanistic factors
The lack of understanding of the needs of the users by designers (the lack of correct definition of the needs and their analysis).
The lack of information of the managers and users as they don’t know exactly what they want and what their information needs are.
The lack of participation of the managers and users in system design.
The lack of understanding of the managers of software and information systems.