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Business Reports, Inter and Intra- departmental Communication Notes-CSEET

Business Reports, Inter and Intra- departmental Communication Notes-CSEET

Business Reports

The word ‘Report’ is derived from the Latin “reportare” which means to carry back (re=back+ portare = to carry). A report, therefore, is a description of an event carried back to some who was not present on the scene.

The report is a message to management. It travels from an employee to a supervisor, from a supervisor to an executive, or from the executive to the management. Simply stated, a business report conveys information to assist in decision-making. A report is the means to present this information. Some reports might present the actual solution to solve a business problem; other reports might record historical information that will be useful to assist in future decision-making. Either way, information is being “reported” that will be useful in making decision.

Thus the term report can be defined as an orderly and objective presentation of information that helps in decision-making and problem solving. Note the different parts of this definition:

  1. The report must be well-ordered so the reader can easily find information.
  2. It must be objective because the reader will use the report to make decision that affect the organization.
  3. It must present information-facts and data. Where subjective information are required, as in drawing conclusions and making recommendations they must be presented ethically and be based on the information contained in the report.
  4. It must aid in decision making and problem solving. There is a practical, “need-to-know” dimension about business reports that differentiates them from academic or scientific reports.

A business report can be defined as an evaluation or assessment or review of a particular event, issue, period or set of circumstances which is related to a business. The business report can be on compliance status, financial position, report of the Board of Directors of the company, Sales or on any other matters for which the report is required by an expert or authority. .

The business report is usually written in response to a request by an authority of the company, Business reports are one of the most effective ways to communicate. Although the scope of the business reports’ are broad, however broadly, we can categorise the same in to the following:

Business Report Categories
Compliance Report
Corporate Governance Report
Sustainability Report
Recommendation Report
Investigation Report
Feasibility Report
Research Report
Periodic Report
Situational Report

 

Writing Effective Business Report

A business report should not be written in essay format and it should be in an abridged style that allows the reader to navigate the report quickly and to identify key elements. It uses appropriate headings and subheadings and, if necessary, bullet points, diagrams and tables. The main function of a business report is to communicate relevant information quickly, clearly, and efficiently. Business reports can range from brief one-or-two-page reports, to reports of a hundred pages or more with several chapters and, quite possibly, a number of appendices. A lengthy report would include a table of contents and possibly an index. However, usually include the following four elements:

 

To write an effective business report, it is necessary to understand and identify the following:

 

 

 

•      Objective of the Report

•      Format of the report

•      User of the Report

•      Requisite Information or Inputs data

•      Collection of the data and facts

•      Analysis and fact finding procedures

•      Executive Summary

EFFECTIVE BUSINESS REPORT

The Executive Summary acts like the Abstract of a regular essay. It will briefly state the purpose of the report, it will briefly describe the methodology used to investigate the issue and it will list the key points and findings that are found in the report.

The Body gives details of the evaluation process. It will describe your methodology and identify particular issues that impacted on your evaluation. It might also allude to, or give a brief preview of your findings. Relevant tables and/or diagrams will appear in the Body.

In the Key Findings/Recommendations section you will identify and discuss/describe your key findings and make your recommendations. Your Conclusion will neatly sum up your findings, and in doing so will ensure that these relate back to the original question or issue that has given rise to the report.

Inter and Intra-Departmental Communication

Inter and intra-departmental communication has largely been a formal affair. The chief executives assumed that they were expected to be direct, brief and functional, wasting little time on niceties. Employees were usually taken for granted – bound by archaic service rules to listen and to comply unquestioningly. No wonder the documents produced were staid and standardised.

Over the years, there has been greater appreciation of the important role the staff play is an organisation. Their stake in the organisation has also gone up with schemes like Employee Stock Option Plans becoming popular as one of the means of compensation. They now take a greater interest in framing of policies, get more respect and enjoy confidence.

Inter departmental communication is largely a formal affair. Inter departmental communication will be effective when it is supported by good infrastructural facilities. There are various documents used in inter departmental communication, they are:

  1. Memorandum

The term Memorandum (Memos) has often been misunderstood as a part of disciplinary proceedings. Far from it, the word at best means a note or record for future use. It is a useful mode of internal communication. A memorandum (memorandums or memoranda in plural) plays a convenient and flexible role. While much of inter and infra-office communication is being done over the phone, memorandums are preferred when one needs to convey information in writing.

There are minor variations in format but most memos have the same headings. The difference with the letter format is obvious. Inside name and address are done away with. Nor are salutation and complimentary close used. Informal tone and use of personal pronouns is allowed. Numbering is optional. Titles such as Interoffice Communication, Office Memorandum or Interoffice Correspondence may be used in place of more commonly used Memorandum. When addressed to all employees, a memorandum is as good as an Office Circular:

A few specimens of Memos are given below:

Specimen 1

BEEM ELECTRONICS LIMITED

BANGALORE

Ref : 81/C/201911th April 2019
Office Memorandum
With reference to his request for grant of Special Casual Leave, Shri P. Sachdeva is informed that Special Casual Leave has been granted to him for four days from 23rd April to 26 th April 2019 for enabling him to participate in the District Level AthleticMeet.
Sd/-
Ramesh Kumar
Administration Manager
To
Shri P. Sachdeva
Secretarial Department
Through: Company Secretary

 

Specimen 2
SUMAN ENGINEERING LIMITED
PUNE
Ref:81/1/201913 th May2019
Memorandum
Shri Mukesh is hereby informed that the office has no objection to his pursuing part time M.A. Degree Course in the evenings after office hours. However, grant of leave for study/examination is subject to exigencies of office work.
Sd/-
Surendar GhoshManager
(Personnel)
To
Shri Mukesh
Assistant, Sales Department
Through: Manager – Sales
Specimen 3
SEETHA ELECTRICALS LIMITED
KANPUR
MEMO/1721st March, 2019
With reference to his letter dated 4th March, 2009 requesting for change of seat on health grounds, Shri Badal Singh is informed that the matter is under consideration and the decision would be communicated to him soon.
Sd/-
Bipin Kumar
Manager (Administration)
To
Shri Badal Singh
Stores Department
Through: Stores Manager
Memos are also issued in the cases of disciplinary actions to be taken against employees and replies thereto. These include memos relating to show-cause notice, charge sheet etc.,
  1. Office Circulars

Office circulars are for disseminating information to a large number of employees within the organisation. Since it is an internal communication, therefore it has traditionally been brief and business-like formal and devoid of salutation.

A few specimens of office circulars are given below:

Specimen 1
Inviting Suggestions
SUMAN ELECTRICALS LIMITED
PUNE – 411 004
Circular No. 345/2019
3rd April, 2019
The manual of instruction which was last revised in June 2017 is proposed to be updated. Constructive suggestions are welcome from employees. Suggestions are to be sent to the undersigned latest by 30th April, 2019.
Sd/-
Manager O&M Cell
Specimen 2
Insisting Punctuality
MINI CONDUCTORS LIMITED
PATNA – 800 003
Circular No. 12/2019
25 th May, 2019
Employees are requested to strictly adhere to the office timings. Tendencies to move around unnecessarily in corridors and canteens would be viewed seriously.
Co-operation of all the employees is solicited in maintaining decorum and discipline in the office premises.
Sd/-
Bhagat Singh
Manager, Personnel

 

Specimen 3
Information regarding annual day celebrations
SEEMA ELECTRICALS LIMITED
PUNE – 411 004
Circular No. 23/2019
3rd April, 2019
The Annual Day Function of the company is to be celebrated on the 30th May, 2019 with usual gaiety and fervour. There will be special meeting at 9.00 a.m. Shri NanalalBhat, Managing Director would address all the employees. It is proposed to honour employees who have put in more than 15 years of service in the Company.
At 3 p.m. there would be sports events for men and women. Tea, lunch and light refreshments will be served in the course of the day’s celebrations. At 6.30 p.m. there would be a prize distribution function. From 7 p.m. to 9 p.m. there would be a light music programme by the famous Europhia and a dance party followed by dinner.
All employees are requested to attend the celebrations with their family members and make it a great success. Suggestions are welcome.
Sd/-
Suresh Kumar
Assistant Manager, Personnel
Specimen 4
Announcing a new bonus scheme for employees
XCE LTD.
HYDERABAD – 500 012
Circular No. 2/2019/HRD
1st January, 2019
The undersigned is pleased to inform you that Board of Directors of the Company has decided to introduce a Productivity Linked Bonus Scheme for Employees of the Company with effect from 1st April, 2019. The much awaited scheme is really intended to give more financial benefits to the employees as well as to increase the output. Further details of the scheme will be announced soon.
Sd/-
Personnel Manager
To : All Employees

 

3. Office Orders
Office Orders have a format similar to that of memorandums. What makes them different is the purpose and tone employed. They generally deal with matters affecting rights and privileges of employees. The language used is formal and legally common. Passive verbs are preferred. They carry a number since they remain in force till revoked and are filed for future reference. In addition, they carry a bold, underlined heading to help us identify them. Copies are sent to concerned people:
A specimen office order is given below:
Specimen 1
Order No. 34/47 th March, 2019
OFFICE ORDER
Mr. J.K. Saxena, Manager (Credits), Friends Colony branch is transferred to the Regional Office on the same rank and pay. He shall hand over charge to the Chief Manager and report at the Regional Office by 10th March, 2019.
Sd/-
Personnel Officer
cc:
Chief Manager,
Friends Colony branch,
Mr. J.K. Saxena, Manager (Credits)
Specimen 2
Order posting a new recruit to a department
AMERICAN STEEL COMPANY LTD.
CHENNAI – 600 012
Ref.: 23/Per/201925th July, 2019
Office Order
Shri Rajan Pillai has been posted to the Accounts Department as ‘Assistant Accountant’ w.e.f. today.
Sd/-
Mukesh Jain
cc: Accounts Officer

 

Specimen 3
Transfer order
BRITISH INDIA COMPANY LTD.
KANPUR – 208 002
Ref.: 23/2009/Per12th January, 2009
Office Order
Shri Kushal Jain is transferred to the Stores Department. He shall report to the Stores Officer latest by 14th January, 2009 after handing over charge of his duties to the Accounts Officer.
Sd/-
Mangal Singh
(Senior Admn. Officer)
To : Accounts Officer cc: Stores Officer
Specimen 4
Promotion order
MANGALAM PAINTS & CHEMICALS LTD.
COIMBATORE – 641 018
Ref.: Per/45/201931st March, 2019
Office Order
Shri Ashok Shinde, Senior Accountant is promoted with immediate effect as Assistant Accounts Officer’. He will draw a basic pay of Rs. 5,500 in the scale 5500- 40-5700-50-6000.
He will be on probation for a period of one year.
Sd/-
Mangal Dass
Manager, Personnel
To : Shri Ashok Shinde, Accounts Department.
4. Office Notes
Office Notes are exchange between two different departments. Companies follow a particular format for ‘notes’ of this type. The actual layout of the ‘Note’ may differ from company to company.

 

It is a matter of style and individual preference. A few formats are given below :

Specimen 1

LATEX BALLS LTD.

T.T. PURAM – 695 001

Ref.: LD/ST/3Date: 18th June, 2019
From : Legal Deptt.To: Admn. Deptt.
Subject : Additional Stenographer
The Extraordinary General Meeting of the company is to be held on the 18 th July, 2019 to transact some urgent business. Therefore two very urgent Board meetings are to be held in quick succession for discussing a detailed agenda.
The preparation of the relevant papers and other documents in connection with the above is to be given top priority. Considering the workload likely to arise on account of this, an additional stenographer may please be posted to this department for a period of one month.
Sd/-
T. Viswanath
Manager (Law)
Specimen 2
CLIMAX INSTRUMENTS LIMITED
Ref: ST/1/92Date: 24.3.2019
From: Stores Deptt.To: Admn. Deptt.
Subject: Stock taking for the year ending 31.3.2019
The stock taking for the purpose of closing the accounts for the year ending 31.3.2019 would commence on 30.3.2019. All the Departments may be advised to draw their requirements latest by 29.3.2019. Also, there would be no supplies to customers from the stores on 30 th and 31st March, 2019.
Sd/-
Ashok Lalla
Stores Suptd.

Points to Remember

—    A memo is different from a letter, both in format and in its effect on the addressee. It is important to note that a memo does not have a salutation and complimentary close. But the subject is clearly written and underlined.

—    Memos are used commonly for issuing instructions to the staff, change in the policy inviting suggestion, giving information, making requests etc.

—    Whatever be the subject matter, the language of the memo should be polite and courteous.

Management Information Systems (MIS)

The MIS Concepts

Executives in an organization provide leadership and direction for planning, organizing, staffing, supervising, and controlling business activities. Each of these business activities involves decision making process. For making decisions, executives need the information. The required information is to be provided by information specialist or by data processing department. With the increasing competition in the era of information economy, the demands for organized, need base information is increasing day by day. Depending on the hierarchy the information need differs, accordingly different types of information systems are required. To achieve this goal, different types of information systems are devised by the organizations. The MIS is derived from these information systems used in the organizations.

Major postulates of Management Information Systems are:

  1. Information form of a MIS is periodic, exception and based on demands.
  2. Information formats are pre-specified and fixed.
  3. Information is provided by extraction and manipulation of operational data.

4 It provides information about the performance of the organization.

  1. It supports the intelligence and implementation stages of decision making.
  2. It supports structured decisions for operational and tactical planning and control.

Purpose of MIS

A well-defined MIS provides information to all levels of management for the following purpose:

–      To report the organization performance to tax authorities, shareholders, regulatory authorities and other stakeholders such as suppliers and customers etc.

–      To prepare future plans for short and long term basis.

–      To exercise day-to-day control on various operations in the different functional areas in the organization.

–      To allocate different type of resources to different functional areas.

–      To allow management by exception.

–      To develop database of business partners and to devise procedures to deal with them.

–      To develop the training tools for the new recruits in the organization at all levels.

Elements of MIS

MIS is a system that helps management in the process of decision making. The three elements of MIS are Management, Information and System. It is necessary to understand these three components:

Management

The term “Management” as defined by Marry Follett is “The art of getting things done through people” It also refers to a set of functions and processes designed to initiate and coordinate group efforts in an organized setting, directed towards promoting certain interests, preserving certain values and pursuing certain goals. It involves mobilization, combination, allocation and utilization of physical, human and other needed resources in a judicious manner by employing appropriate skills, approaches and techniques. It is a process of conceiving and converting certain worthwhile ideas into results by getting things done through people by offering them monetary and other inducement in return for their contributions.

In short “Management” may be thought of as the sum total of these activities which relate to the laying down of certain plans, policies and purposes, securing men, money, materials and machinery needed for their goal achievements; putting all of them into operation, checking their performance and providing material rewards and mental satisfaction to the men engaged in the operation.

Information

It is a source for increment in knowledge. In MIS, it is obtained by processing data in to a form meaningful to the users. To illustrate, the concept, let us discuss the following situations; if somebody throws the word eleven during discussion, it means nothing to the participant. It is a data item, but it is placed within a context familiar to the intended recipient. Let us analyze another situation, if a manager is asking a question, “What are the sales of the packaged goods by marketing department and projection for the next quarter?” The answer would be 11 only. Here, it is information not the data item since the number 11 is being used in a context.

System

A physical system is a set of components that operate together to achieve a common objective or multiple objectives. These objectives are realized in the outputs of the system. An efficient system uses its inputs economically in producing its outputs. An effective system produces the outputs that best meet the objectives of the system. MIS can be thought of as a system (set of hardware, software, manpower, procedures, etc) to provide timely and accurate information to the management users in an organisation. The objective of the management information system is to provide formal informational support to the members of the organization.

Structure of Management Information System

Management Levels and their information needs

The levels of management consist of top, middle, and first line management (supervisory). The activities in the organizations are of three types:

–      Strategic planning,

–      Tactical and

–      Operational

Each of these levels to perform – strategic planning, tactical, and operational activities and requires different set of information. The activities and information needs of three levels of management are illustrated in the following.

  1. Top level (Strategic level) Management and their information requirements

Top management is defined as a set of management positions, which are concerned with the overall tasks of designing directing and managing the organization in an integrated manner. They are responsible for interacting with representatives of the external environment, such as financial institutions, political figures, and important clients of the organization.

The structure of top level normally consists of Chairman and members of the Board of Directors, Chief Executive Officer and the heads of the major departments of the company. In fact, this level consists of those executives, whose responsibilities relate to the whole organization or in other words, they are accountable for effectiveness and efficiency of the operations of the organization as a whole.

Top management’s main responsibility is in the direction of determining the overall goals and objectives of the business. It deals mainly with long-term strategic plans, policy matters and broad objectives of the company. Also, it establishes a budget framework under which the various departments will operate.

Top management needs the information on the trends in the external environment (economic, technological, political and social) and on the functioning of the internal organizational sub­system. Apart from historical information, top management requires on-going or current information also which is generated through forecasts of the future. Thus, mostly the information utilized by top management is futuristic and external in nature. Much of the information so generated for strategic planning purpose tends to be incomplete and not fully reliable. It may not be available on time. For control purposes, top management receives summary and “exception reports”

(For example on production, sales, cash, profits, and so on) from the middle management. The distinction between strategic planning information requirement and tactical information requirement is not always clear because both systems use some of the common information.

  1. Middle level (Tactical level) Management and their Information Needs

Middle level management is defined as a group of management positions, which tend to overlap the top and supervisory management levels in the hierarchy. Middle management positions consist of heads of functional departments and chiefs of technical staff and service units. Middle management, therefore, includes such people as the Manager of Sales, the Manager of Purchasing, Finance Manager, and the Manager of Personnel etc. Middle management may be viewed as “administrative” management in the sense that it is responsible for the elaboration, classification and operationalization of organization goals, strategies and policies in terms of action programmes and norms of performance. Middle management is concerned with the task of formulating pragmatic operating policies and procedures for the guidance of supervisory management.

The nature of information required at the middle management level is less diverse and complex. Middle management is fed with information both from top management and supervisory management. Much of the information used by the middle management is internal in nature. Middle management does not require much “futuristic” information since its decisions are not strategic and long range in nature. For example, the information needs of a sales manager are: corporate sales goals and targets, strategies and policies for operationalizing them, he also needs information on sales potential and trends in different market segments, geographical territories, competitive conditions and so on. Further, he needs information on weekly sales turnover from different zones and for different products, customer complaints, delay in dispatches, finished goods inventory position and the like for the purposes of control. Tactical Information Systems are designed to generate a variety of reports, including summary reports, exceptional reports, and ad hoc reports.

  1. Supervisory level (Operational level) Management and their Information Needs

Supervisory management is defined as a team of management positions at the base of the hierarchy. It consists of section officers, office managers and superintendents, foreman and supervisors who are directly responsible for instructing and supervising the efforts of rank and file, clerical and “blue-collar” employees and workers. Supervisory management is also called “operation management” in the sense that it is concerned with implementing operational plans, policies and procedures for purposes of conversion of inputs into outputs. At the supervisory level, managers are responsible for routine, day-to-day decision and activities of the organization, which do not require much judgement and discretion. The function and process of the supervisory management are standardized as far as possible. The perspective of supervisory management is generally short-range and insular. It functions in a relatively closed environment.

Supervisory management mostly needs internal information on operational aspects of the functioning of activity units. It in fact, generates internal information for example, on purchase and sales, production, use of inputs etc. at the operating level. It also receives information from the middle management levels on operational plans and programmes. The nature of information is routine and structured. It tends to be reliable and relatively complete.

There is little element of complexity of uncertainty involved in the information.

Characteristics of MIS

Some of the main characteristics of MIS are listed as under.

  1. Comprehensiveness : Management Information System is comprehensive in nature. It takes inputs from transactions processing systems and process information primarily for managers at all levels. It caters to theneed of large variety of people in different hierarchy as routine information requirement exist practically at alllevels. Therefore reporting system in the form of MIS is most sought after information system in any organization.
  2. Co-ordinated : Management information system is centrally co-ordinated to ensure that information is passed back and forth among the sub-systems as needed and to ensure that information system operates efficiently.
  3. Sub-systems : A MIS is composed of sub-systems or quasi separate component system that is the part of the overall – unified system. Each of these systems shares the goals of the management information system and of the organization. Some of the systems serve just one activity or level in the organization, while others serve multi-levels or multiple activities. The overall structure of the multiple systems should be carefully established as a part of long range system planning.
  4. Integration : A MIS is rationally integrated, so as to become more meaningful. Sub-systems are integrated so that the activities of each are inter-related with those of the others. This integration is accomplished primarily by passing data between these systems. Computer programmes and files can be designed to facilitate data flows among the systems, and manual procedures are also used to accomplish this integration. While integration makes information processing more efficient by reducing both intermediate processing and the incidence of independent generation of the same data by multiple departments, an even more important benefit is that it provides more timely, complete and relevant information. Senior managers particularly, benefit from integrated systems because they need cross functional information. Although total information of sub-systems is neither achievable nor desirable, a substantial degree of integration is required for an effective management information system.
  5. Transformation of Data into Information : A MIS transforms data into information in variety of ways. When data is processed and is useful to a particular manager for a particular purpose, it becomes information. There are many different ways in which data must be transformed within an information system. For example, cost data for a particular organization may be summarized on a full-cost, variable-cost, and standard-cost basis for each organization unit, as well as by each cost type, customer type, and product, line. The numerous ways in which MIS should transform data into information are determined by the characteristics of the organizational personnel, the characteristics of the task for which information is needed.
  6. Enhance Productivity : A MIS enhances productivity in several ways. It enables routine tasks such as document preparation to be carried out more efficiently, it provides higher levels of service to external organizations and individuals, it supplies the organization with early warnings about internal problems and external threats, it gives early notice of opportunities, it facilitates the organization’s normal management processes and it enhances managers’ ability to deal with unanticipated problems.
  7. Conforms to Managers’ Styles and Characteristics : A management information system is developed in recognition of the unique managerial styles and behavioural patterns of the personnel who will use it, as well as the contributions made by managers. At the organization’s more senior levels, the management information system is likely to be carefully tailored to each individual manager’s personal tastes. At the organization’s lowest levels, the management information system is more likely to be tailored to the unusual way in which clerical and operations personnel use information and interact with the information system. For middle managers, the information system is tailored to the general characteristics of managers. For professional and technical personnel, the information system is tailored to the nature of the specialized task, but with attention also given to the way the minds of these specialists process information.
  8. Relevant Information : A MIS should provide only relevant information. Determining what information is relevant may be difficult in situations in which analyses vary for different managers or according to particular circumstances, such as in the case of special problems. Systems designers must carefully consider the human factor when developing a management information system. Otherwise, the resulting system will be ineffective and probably will be discarded by its users.
  9. Uses Established Quality Criteria : A management information system must be designed to the required tolerance for timeliness, relevance, and accuracy of information. These tolerances vary from task to task and from level to level within an organization.
  10. Feedback : A management information system should provide feedback about its own efficiency and effectiveness. The reporting of computer malfunctions and transactions processing error rates is a simple example of this feedback. Statistics prepared by the system about who uses each system facility and how much they use each one are more sophisticated forms of feedback. Computer programs can record and report how much computer time is used by each user, how many pages are printed for each user, and how much internal data file space is utilized by each user’s data, as examples; these and other usage statistics can be used for managerial analysis or as basis for charging each user for computer usage if desired.
  11. Flexibility : It must be designed to be easily modified if, for example, different information is needed because the environment changes or if the organization undertakes new activities (such as introducing new products) which require new modes of processing. The information system should be capable of being easily expanded the accommodate growth or new types of processing activities and also easily contracted.
  12. Modularity : The MIS should be composed of many modules or sub-systems rather than be designed as one and only one for a few large systems.
  13. Selective Sharing of Data : Another desirable quality of an MIS is selective sharing of data. Two or more managers often need to utilize the same information; the system should have features, which allow ready access to information by multiple managers. An advanced feature that promotes this sharing is data bases. On the other hand, it is often important to reserve certain information for the exclusive use of only selected managers. Sometimes, this need extends down to the record or field level, in which case some parts of a record are available to all managers, but only certain managers permitted to examine other parts. For example, an employee’s current address or marital status may be needed by employee or other personnel, but access to information about pay rate, hours worked, gross pay, and other details of payments may be restricted to certain payroll managers. This selective sharing quality can be established by controls that are part of the computer programs.
  14. Computerized : It is possible to have a MIS without using a computer. But its use increases the effectiveness of the System. In fact, its use equips the system to handle necessary attributes of the computer to MIS, for example accuracy and consistency in processing data and reduction in staff. These needs in management information system make the computer a prime requirement.

To sum up, business correspondence is the backbone of a good organisation or company.

Basic Requirement of MIS

In the present context, most of the organizations are using computer-based management information system in the era of information economy. The basic requirements of a computer based MIS are listed as below :

  1. Hardware : It refers to the physical computer equipment and associated devices. The hardware must provide five basic functions, i.e., input of data entry, output, secondary storage for data and programmes, central processor (Computation, Control, and primary storage) and communication.
  2. Software : It is a broad term; it means the instructions or programs that direct the operation of the hardware. The software requirement if of book types: System Software and Application Software.
  3. Database : The database contains all data utilized by the application software. An included set of stored data which is often referred to as file. The physical existence of the stored data is known as database.
  4. Procedures : Formal operating procedures are physical components because they exist in a physical from such as a manual or instruction booklet. Basically, three major types of procedure are required: – User Instructions (for users of the application to record data, employ a terminal to enter or retrieve data, or use the result) – Instructions for preparation of input by data preparation personnel – Operating instructions for computer operations personnel.
  5. Operations Personnel : It includes personnel such as Computer operators, system analysts, programmers, data preparation personnel.

Limitations of MIS

The main limitations of MIS are as follows:

  1. The quality of the outputs of MIS is basically governed by the quality of inputs and processes.
  2. MIS is not a substitute for effective management .It means that it cannot replace managerial judgement in making decisions in different functional areas. It is merely an important tool in the hands of executives for decision-making and problem solving.
  3. MIS may not have requisite flexibility to quickly update itself with the changing needs of time, especially in the fast changing and complex environment.
  4. MIS cannot provide tailor made information packages suitable for the purpose of every type of decisions made by executives.
  5. MIS takes into account mainly quantitative factors; thus it ignores non-quantitative factors like morale, attitudes of members of the organization, which have an important bearing on decision­-making process of executives.
  6. MIS is less useful for making non-programmed decision-making. Such type of decisions is not of routine type and thus they require information, which may not be available from existing MIS to executives.
  7. The effectiveness of MIS is reduced in the organization, where the culture is to hold information and not share with others.
  8. MIS effectiveness decreases due to frequent changes in top management organizational structure and operational team.

Sample Questions

  1. A Letterhead contains the following:

(a)   Company logo

(b)   Name and address of Registered Office, Corporate Office

(c)   Contact numbers

(d)   All of the above

  1. The word “Confidential” super scribed on the envelope is a __________.

(a)   Salutation

(b)   Special marking

(c)   Attention line

(d)   Subject heading

  1. The word ‘Report’ is derived from the Latin word:

(a)   Reportare

(b)   Reporte

(c)   Rapport

(d)   Repo

  1. A/An __________ is used for disseminating information to a large number of employees within the organisation.

(a)   Office circular

(b)   Memorandum

(c)   Office order

(d)   None of the above

  1. MIS stands for:

(a)   Management Infotainment System

(b)   Management Information System

(c)   My Information System

(d)   Management Intellectual System

 

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