What is MIS?

Characteristics,
Objectives, Role, Component

What is MIS?
MIS is an organized integration of hardware and software technologies, data,
processes, and human elements. It is a software system that focuses on the
management of information technology to provide efficient and effective strategic
decision making.

What is MIS? MIS is the acronym for Management Information Systems. MIS is

a set of procedures which, when executed, provides information to support
decision making.

Management Information System

A Management Information System is

 An integrated user-machine system
 For providing information
 To support the operations, management, analysis, and decision-making
functions
 In an organization
The system utilizes
  Computer hardware & software
 Manual procedures
 Models for analysis, planning, control, and decision making, and
 A database

Table of Contents [Hide]
 1 What is MIS?
 2 MIS Definition
 3 MIS Meaning
 4 Components of MIS
 5 Objectives of MIS
o 5.1 Data Capturing
o 5.2 Processing of Data
o 5.3 Storage of Information
o 5.4 Retrieval of Information
o 5.5 Dissemination of Information
 6 Characteristics of MIS
o 6.1 System Approach
o 6.2 Management Oriented
o 6.3 Need-Based
o 6.4 Exception Based
o 6.5 Future Oriented
o 6.6 Integrated
o 6.7 Long Term Planning
o 6.8 Sub-System Concept
o 6.9 Central Database
 7 Advantage of MIS
 8 Role of MIS
o 8.1 Decision making
o 8.2 Coordination among the department
o 8.3 Finding out Problems
o 8.4 Comparison of Business Performance
o 8.5 Strategies for an Organization
 9 Challenges of MIS
o 9.1 High Cost
o 9.2 Training of Employee
o 9.3 Maintenance Cost
 10 Limitations of MIS
 11 Requirements of Management Information System
 12 Summary
 13 FAQ
MIS Definition
Management Information System (MIS) is an integrated man/machine system for
providing information to hold up the operations, management and decision making
functions in an organization.G.B. Davis
A formal method of collecting timely information in a presentable form in order to
facilitate effective decision making and implementation, in order to carry out
organisational operations for the purpose of achieving the organisational
goals.Walter I. Kennevan
A Management Information System is an organized portfolio of formal systems for
obtaining, processing, and delivering information in support of the business
operations and management of an organization.Zwass (1992)

MIS Meaning
MIS Meaning: A management information system is an acronym of three words,
viz., Management, information, system. In order to fully understand the term MIS,
let us try to understand these three words.
1. Management: Management is the art of getting things done through and
with the people in formally organised groups.

2. Information: Information is data that is processed and is presented in a

form which assists decision-making. It may contain an element of
surprise, reduce uncertainty or provoke a manager to initiate an action.

3. System: A system is an orderly grouping of interdependent components

linked together according to a plan to achieve a specific goal. The term
system is the most loosely held term in management literature because of
its use in different contexts.
Components of MIS
The major components of MIS are:

Components of MIS
 People Resources: People are required for the operation of all
information system.
 Data Resources: Database holds processed and organized data.
 Software Resources: It includes all sets of information processing
instruction.
 Hardware Resources: Include all physical devices and materials used in
information processing.
 Process: is a step undertaken to achieve a goal.

As, We have covered the basic concept of management information system which
includes what is MIS, MIS definition, MIS meaning, MIS components.

Now, let us move further and try to understand MIS objectives, MIS

characteristics, MIS advantages, MIS role, MIS challenges, MIS limitations etc

Objectives of MIS
What is MIS objective: MIS has five major objectives which include:
1. Data Capturing
2. Processing of Data
3. Storage
4. Retrieval
5. Dissemination
Objectives of MIS
These MIS objective are discussed below in detail.

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

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

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.

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

Dissemination of Information
Information, which is a finished product of MIS, is disseminated to the users in the
organization. It is periodic or online through a computer terminal.
Characteristics of MIS
What is MIS Characteristic? MIS plays a very important role in every aspect of an
organization. These characteristics are generic in nature. 
Following are the characteristics of MIS:
1. System Approach
2. Management Oriented
3. Need-Based
4. Exception Based
5. Future Oriented
6. Integrated
7. Long Term Planning
8. Sub-System Concept
9. Central Database

Characteristics of MIS

System Approach
The information system follows a System’s approach. The system’s approach
implies a holistic approach to the study of system and its performance in the light
for the objective for which it has been constituted.

Management Oriented
The top-down approach must be followed while designing the MIS. The top-down
approach suggests that the system development starts from the determination of
management needs and overall business objectives.

The MIS development plan should be derived from the overall business plan.
Management oriented characteristic of MIS also implies that the management
actively directs the system development efforts.
Need-Based
MIS design and development should be as per the information needs of managers
at different levels, strategic planning level, management control level and
operational control level. In other words, MIS should cater to the specific needs of
managers in an organization’s hierarchy.

Exception Based
MIS should be developed on the exception-based reporting principle, which means
an abnormal situation, i.e. the maximum; minimum or expected values vary
beyond tolerance limits. In such situations, there should BE exception reporting to
the decision-maker at the required level.

Future Oriented
Besides exception-based reporting, MIS should also look at the future. In other
words, MIS should not merely provide past or historical information; rather it
should provide information, on the basis of projections based on which actions
may be initiated.

Integrated
Integration is a necessary characteristic of a management information system.
Integration is significant because of its ability to produce more meaningful
information.

For example, in order to develop an effective production scheduling system, it is

necessary to balance such factors as setup costs, Workforce, Overtime rates,
Production capacity, Inventory level, Capital requirements and Customer services.

Long Term Planning

MIS is developed over relatively long periods. Such a system does not develop
overnight. A heavy element of planning is involved. The MIS designer must have
the future objectives and needs of the company in mind.

Sub-System Concept
The process of MIS development is quite complex and one is likely to lose insight
frequently. Thus, the system, though viewed as a single entity, must be broken
down into digestible sub-systems which are more meaningful at the planning stage.

Central Database
A central database is a mortar that holds the functional systems together. Each
system requires access to the master file of data covering inventory, personnel,
vendors, customers, etc. It seems logical to gather data once, validate it properly
and place it on a central storage medium, which can be accessed by any other
subsystem.

Advantage of MIS
A good management information system can be used not only for the storage of
electronic data alone but must be able to support the analysis required by
management. There are many advantages of MIS which are utilised by manager
to achieve organization goal.
The following are some of the benefits of a good MIS.
 Increased customer satisfaction
 Improved quantity and quality of information
 Improved quality and quantity management decisions
 Improved responsiveness number of the competitor’s condition
 Improved operational efficiency and flexibility
 Improved quality of internal and external communications
 Improved quality of planning
 Improved quality control and supervision

Role of MIS
A management information system (MIS) plays an important role in business
organizations.
What is MIS role: There are many roles of MIS and some of the important MIS
role are discussed below:
1. Decision making
2. Coordination among the department
3. Finding out Problems
4. Comparison of Business Performance
5. Strategies for an Organization
Role of MIS

Decision making
Management Information System (MIS) plays a significant role in the decision-
making process of any organization. In any organization, a decision is made on the
basis of relevant information which can be retrieved from the MIS.

Coordination among the department

Management Information System satisfy multiple need of an organization across
the different functional department.

Finding out Problems

As we know that MIS provides relevant information about every aspect of
activities. Hence, if any mistake is made by the management then MIS,
information will help in finding out the solution to that problem.

Comparison of Business Performance

MIS store all past data and information in its Database. That why the management
information system is very useful to compare business organization performance.

Strategies for an Organization

Today each business is running in a competitive market. An MIS supports the
organization to evolve appropriate strategies for the business to assent in a
competitive environment.
Challenges of MIS
What is MIS Challenges: There are three major challenges of MIS: high cost,
training of employees and maintenance cost. These are briefly discussed below:
1. High Cost
2. Training of Employee
3. Maintenance Cost
High Cost
Development of new computerized based information system is a problem for the
organization due to the cost factor and it creates problems because with the change
of time there is need of up-to-date of the information system.

Training of Employee
Employees should have the capacity of learning of the information system with the
changing competitive and business environment; otherwise it will be difficult for
the organization to stay in the market.

Maintenance Cost
Sometimes a problem arises due to server crash and website crash. Sometimes it
leads to the loss of information. So, maintenance cost is needed to tackle the above
problem.

Limitations of MIS
Even though MIS has many benefits but it also has its limitations. Limitations of
MIS are discussed below:
 While MIS may solve some critical problems but it is not a solution to
all problems of an organization.

 It cannot meet the special demands of each person.

 MIS if designed in an improper manner does not serve the

management and hence is of little relevance.

 The MIS is not good if the basic data is obsolete and outdated.

 Mostly information provided by the MIS is in quantitive form. Hence,

it ignores the qualitative information like the attitude of an employee.
Requirements of Management
Information System
Following are the requirements of a management information system:

1. Database
2. Qualified System and Management Staff
3. Top Management Support
4. Active Participation of Operating Management
5. Control and Maintenance of Management Information System
6. Evaluation of Management Information System

Implementation task of MIS

Given in the form of pdf pls refer to that for reference

MIS - The factors of Success and Failure

 

Many organizations use MIS successfully, others do not. Though the hardware and the software is the
latest and has appropriate technology, its use is more for the collection and storage of data and its
elementary processing. There are some factors which make the MIS a success and some others,
which make it a failure. These factors can be summarized as follows:

Factors Contributing to Success

 

If a MIS is to be success then it should have all the features listed as follows:

§         The MIS is integrated into the managerial functions. It sets clear objectives to ensure that the MIS
focuses on the major issues of the business.

§         An appropriate information processing technology required to meet the data processing and
analysis needs of the users of the MIS is selected.

§         The MIS is oriented, defined and designed in terms of the user's requirements and its operational
viability is ensured.
 

§         The MIS is kept under continuous surveillance, so that its open system design is modified
according to the changing information needs.

§         MIS focuses on the results and goals, and highlights the factors and reasons for non
achievement.

§         MIS is not allowed to end up into an information generation mill avoiding the noise in the
information and the communication system.

§         The MIS recognizes that a manager is a human being and therefore, the systems must consider
all the human behavioral factors in the process of the management.

§         The MIS recognizes that the different information needs for different objectives must be met with.
The globalization of information in isolation from the different objectives leads to too much
information and information and its non-use.

§         The MIS is easy to operate and, therefore, the design of the MIS has such features which make
up a user-friendly design.

§         MIS recognizes that the information needs become obsolete and new needs emerge. The MIS
design, therefore, has a basic potential capability to quickly meet new needs of information.

§         The MIS concentrates on developing the information support to manager critical success factors.
It concentrates on the mission critical applications serving the needs of the top management.

Factors Contributing to Failures

 

Many a times MIS is a failures. The common factors which are responsible for this are listed as
follows:

§         The MIS is conceived as a data processing and not as an information processing system.

§         The MIS does not provide that information which is needed by the managers but it tends to
provide the information generally the function calls for. The MIS then becomes an impersonal
system.

§         Underestimating the complexity in the business systems and not recognizing it in the MIS
design leads to problems in the successful implementation.
 

§         Adequate attention is not given to the quality control aspects of the inputs, the process and
the outputs leading to insufficient checks and controls in the MIS.

§         The MIS is developed without streamlining the transaction processing systems in the
organization.

§         Lack of training and appreciation that the users of the information and the generators of the
data are different, and they have to play an important responsible role in the MIS.

§         The MIS does not meet certain critical and key factors of its users such as a response to the
query on the database, an inability to get the processing done in a particular manner, lack of
user-friendly system and the dependence on the system personnel.

§         A belief that the computerized MIS can solve all the management problems of planning and
control of the business.

§         Lack of administrative discipline in following the standardized systems and procedures, wrong
coding and deviating from the system specifications result in incomplete and incorrect
information.

§         The MIS does not give perfect information to all the users in the organization.
Read Complete: Requirements of Management Information System

Summary
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.

Got to Topic: 1. What is MIS? 2. MIS Definition 3. MIS Meaning 4. MIS

Components 5. MIS Objectives 6. MIS Characteristics 7. MIS Advantage 8. MIS
Role 9. MIS Challenges 10. MIS Limitations 11. Requirements of Management
Information System