Management Information System

Introduction to MIS

Management Information Systems (MIS), referred to as Information Management and Systems, is the discipline covering the application of people, technologies, and procedures collectively called information systems, to solving business problems.

“'MIS' is a planned system of collecting, storing and disseminating data in the form of  information needed to carry out the functions of management.”

Academically, the term is commonly used to refer to the group of information management methods tied to the automation or support of human decision making, e.g. Decision Support Systems, Expert Systems, and Executive Information Systems.

Management: Management is art of getting things done through and with the people in formally organized groups. The basic functions performed by a manager in an organization are: Planning, controlling, staffing, organizing, and directing.

Information: Information is considered as valuable component of an organization. Information is data that is processed and is presented in a form which assists decision maker.

System: A system is defined as a set of elements which are joined together to achieve a common objective. The elements are interrelated and interdependent. Thus every system is said to be composed of subsystems. A system has one or multiple inputs, these inputs are processed through a transformation process to convert these input( s) to output.

MIS DEFINITION:

The Management Information System (MIS) is a concept of the last decade or two. It has been understood and described in a number ways. It is also known as the Information System, the Information and Decision System, the Computer-based information System.

The MIS has more than one definition, some of which are give below.

1. The MIS is defined as a system which provides information support for decision making in the Organization.

2. The MIS is defined as an integrated system of man and machine for providing the information to

Support the operations, the management and the decision making function in the organization.

3. The MIS is defined as a system based on the database of the organization evolved for the purpose of providing information to the people in the organization.

4. The MIS is defined as a Computer based Information System.

Thought there are a number of definitions, all of them converge on one single point, i.e., the MIS is a system to support the decision making function in the organization. The difference lies in defining the elements of the MIS. However, in today’s world MIS a computerized .business processing system generating information for the people in the organization to meet the information needs decision making to achieve the corporate objective of the organization. In any organization, small or big, a major portion of the time goes in data collection, processing, documenting it to the people.

Hence, a major portion of the overheads goes into this kind of unproductive work in the organization. Every individual in an organization is continuously looking for some information which is needed to perform his/her task. Hence, the information is people-oriented and it varies with the nature of the people in the organization.

The difficulty in handling this multiple requirement of the people is due to a couple of reasons. The information is a processed product to fulfill an imprecise need of the people. It takes time to search

the data and may require a difficult processing path. It has a time value and unless processed on time and communicated, it has no value. The scope and the quantum of information is individual dependent and it is difficult to conceive the information as a well-defined product for the entire organization. Since the people are instrumental in any business transaction, a human error is possible in conducting the same. Since a human error is difficult to control, the difficulty arises in ensuring a hundred per cent quality assurance of information in terms of completeness, accuracy, validity, timeliness and meeting the decision making needs.

In order to get a better grip on the activity of information processing, it is necessary to have a formal system which should take care of the following points:

·         Handling of a voluminous data.

·         Confirmation of the validity of data and transaction.

·         Complex processing of data and multidimensional analysis.

·         Quick search and retrieval.

·         Mass storage.

·         Communication of the information system to the user on time

·         Fulfilling the changing needs of the information.

·         The management information system uses computers and communication technology to deal with

·         these points of supreme importance.

Objectives of MIS :

1. Data Capturing : MIS capture data from various internal and external sources of organization. Data capturing may be manual or through computer terminals.

2. Processing of Data :The captured data is processed to convert into required information. Processing of data is done by such activities as calculating, sorting, classifying, and summarizing.

3. Storage of Information : MIS stores the processed or unprocessed data for future use. If any information is not immediately required, it is saved as an organization record, for later use.

4. Retrieval of Information :MIS retrieves information from its stores as and when required by various users.

5. Dissemination of Information : Information, which is a finished product of MIS, is disseminated to the users in the organization. It is periodicor online through computer terminal.

1.    Characteristics of MIS :

1.      Systems Approach : The information system follows a systems approach. Systems approach means taking a comprehensive view or a complete look at the interlocking sub-systems that operate within an organization.

2.      Management Oriented : Management oriented characteristic of MIS implies that the management actively directs the system development efforts. For planning of MIS, top-down approach should be followed. Top down approach suggests that the system development starts from the determination of management’s needs and overall business objective. To ensure that the implementation of system’s polices meet the specification of the system, continued review and participation of the manager is necessary.

3.      Need Based : MIS design should be as per the information needs of managers at different levels.

4.      Exception Based : MIS should be developed on the exception based also, which means that in an abnormal situation, there should be immediate reporting about the exceptional situation to the decision –makers at the required level.

5.      Future Oriented :MIS should not merely provide past of historical information; rather it should provide information, on the basis of future projections on the actions to be initiated.

6.      Integrated : Integration is significant because of its ability to produce more meaningful information. Integration means taking a comprehensive view or looking at the complete picture of the interlocking subsystems that operate within the company.

7.      Common Data Flow : Common data flow includes avoiding duplication, combining similar functions and simplifying operations wherever possible. The development of common data flow is an economically sound and logical concept, but it must be viewed from a practical angle.

8.      Long Term Planning :MIS is developed over relatively long periods. A heavy element of planning should be involved.

9.      Sub System Concept :The MIS should be viewed as a single entity, but it must be broken down into digestible sub-systems which are more meaningful.

10.  Central database : In the MIS there should be common data base for whole system

Role of  MANAGEMENT INFORMATION SYSTEM

Simply MIS stand For Management Information System. For Simply Understanding Management Information System (MIS) we can divide in to three Word and Understand Part by part

1.       Management: - “Management is function to do the work at the Right time, by the right Person, For the Right Job.”

2.       Information: - “Information is the Collection of Organized data which plays a Vital Role for decision making.”

3.       System:-“System Consist for a set of elements which Provides a Framework to convert Unorganized (Data) into Organized Information.”

Meaning of Management Information System

Management information system refers to such system which provides accurate information to the entire level of management for decision making process. For right job at the right time, by the right person.

Management information System

Role of Management Information System

Management information system (MIS) has become Very Necessary due to Emergence of high complexity in Business Organization. It is all to know that without information no Organization can take even one step properly regarding the decision making process. Because it is matter of fact that in an organization decision plays an essential role for the achievement of its objectives and we know that every decision is based upon information. If gathered information are irrelevant than decision will also incorrect and Organization may face big loss & lots of Difficulties in Surviving as well.

·         Helps in Decision making: - Management Information System (MIS) plays a significant Role in Decision making Process of any Organization. Because in Any organization decision is made on the basis of relevant Information and relevant information can only be Retrieving from the MSI.

·         Helps in Coordination among the Department: - Management information System is also help in establishing a sound Relationship among the every persons of department to department through proper exchanging of Information’s.

·         Helps in Finding out Problems: - As we know that MIS provides relevant information about the every aspect of activities. Hence, If any mistake is made by the management then Management Information Systems (MIS) Information helps in Finding out the Solution of that Problem.

·         Helps in Comparison of Business Performance: - MIS store all Past Data and information in its Database. That why management information system is very useful to compare Business organization Performance. With the help of Management information system (MIS) Organization can analyze his Performance means whatever they do last year or Previous Years and whatever business performance in this year and also measures organization Development and Growth