Page 219 - DMGT505_MANAGEMENT_INFORMATION_SYSTEM

Management Information Systems

Notes
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Case Study Decision Making in Financial Institution

BC Credit Corporation is a financial institution fully owned by the State Govt.
and under the portfolio of State Ministry of Finance. Its mission is to encourage
Aeconomic development through strategic disbursement of various kinds of loans.
ABC Corporation is divided in to two main divisions-operational & administration. The
operational division manages the process for loan arrangements in various situations like
agriculture, housing, hire purchase, etc.

Corporation has a good support of an MIS for various decision-making activities at strategic,
tactic and operational levels:
 Strategic Level: For introduction of new services to be offered by the corporation,
shift MIS can be useful e.g., introduction of new schemes at lower interest rates can
be offered for small business groups.

 Management Level: Evaluation of performance of various types of loan’s schemes
can be done on the basis of some indicators and this indicator’s information can be
vital tool for future budget allocation on various future activities.
 Operational Level: All the transactions related to repayments of loans, interests, etc.
are managed by MIS and used for customer’s enquiries related to current schemes/
offers, interest rates, or outstanding balances, etc.
MIS can be used to support structured, unstructured and semi-structured decisions e.g.,
providing complete application, meeting all the requirements for mortgage purpose, and
the application where some criteria are met can be referred to the manager to make an
informed decision.
MIS is supported by various sub-systems for different functional areas such as: personnel,
training & legal issues, asset management, fund management etc., to assist the mainstream
activity of recording customers details and repayments of loans and is continuously added
and upgraded by MIS.
Questions:

1. Outline the different kinds of decisions taken by ABC corporation under the
structured, semi-structured and unstructured categories.
2. For the decisions outlined in the previous question, identify the level of management
associated with these decisions.
3. Consider a very small Co., where only a few people are decision makers. Explain
how different levels of decision-making might be allocated.
Source: Management Information System by Dharmenda and Sangeeta Gupta

10.6 Summary

 Decision is a course of action consciously selected from available alternatives to achieve a
desired goal.
 All decisions follow the same pattern although some may be more complex and require
several iterations of the decision-making stages.

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