Management Information System (MIS)

Management Information System (MIS) is one of the five major Computer Based Information Systems (CBIS). Its purpose is to meet the general information needs of the managers in firm or organization. MIS is a computer based system that makes information available to users with similar needs.

Management Information System (MIS) consists of following three pillars: Management, Information, and System. These are explained as following below.

  1. Management: art of getting things done through and with the people of in formally organized groups.
    Managerial functions:

    (i) Panning
    (ii) Organizing
    (iii) Staffing
    (iv) Directing
    (v) Controlling 
  2. Information: data that have a meaning with a context ,where data is raw facts about an entity (entity is the object of interest).
  3. System: set of inter-related components with a clearly defined boundary working together to achieve a common goal.

Why one should study MIS:
It may be a student aspiring to become a manager in some organisation, an entrepreneur or a professional. Information system and information technology is a vital component of any successful business and is regarded as a major functional area like any other functional area of a business organization like marketing, finance, production, human resources (HR) etc.

Information systems play following 3 vital roles for a business organisation:

  1. Supports the business processes and operations of an organisation.
  2. Support of decision making by employees and managers of an organisation.
  3. Support the strategies of an organisation for competitive advantage.

Advantages of MIS:

  • Improves quality of an organization or an information content by providing relevant information for sound decision making.
  • MIS change large amount of data into summarize form and thereby avoid confusion which may an answer when an information officer are flooded with detailed fact.
  • MIS facilitates integration of specialized activities by keeping each department aware of problem and requirements of other departments.
  • MIS serves as a link between managerial planning and control. It improves the ability of management to evaluate and improve performance.

Disadvantages:

  • Too rigid and difficult to adapt.
  • Resistance in sharing internal information between departments can reduce the effectiveness.
  • Hard to quantify benefit to justify implementation of MIS.
  • Quality of output of an MIS is directly proportional to quality of input and processes.

Major System in an Organizational Systems:
Organizational information system are logical rather than physical way of thinking about MIS. The following are the management levels:

1. Strategic Planning Level: Plan
2. Management Control Level: Organize
3. Operational Control Level: Direct 

Operational control level includes:

  1. Marketing:
    It is the area in which considerable effort as spent in describing how the computer could be applied to the entire range of marketing operations.
  2. Finance:
    It does not embrace title of financial information system although computer based information system in that area are common.For ex-payroll,taxation.
  3. Human Resource:
    It represents area where most current attention is being focused. Terms Human Resource Information System (HRIS), and Human Resource Management System (HRMS) are common.

  4. Manufacturing:
    It describes how the computer could be applied to the entire range of information collection.

  5. Information Resource:
    It also embraced computer processing and applied the technology as both conceptual information system and physical manufacturing system. For example: quality control, cost control.







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