Management Information System

A management information system (MIS) can be defined as a system that: Provides information to support managerial functions like Planning, organizing, directing, controlling. Collects information in a systematic and a routine manner which is in accordance with a well defined set of rules. Includes files, hardware, software and operations research models of Processing, storing, retrieving and transmitting information to the users. A management information system (MIS) is a subset of the overall internal controls of a business covering the application of people, documents, technologies, and procedures by management accountants to solving business problems such as costing a product, service or a business-wide strategy. Management information systems are distinct from regular information systems in that they are used to analyze other information systems applied in operational activities in the organization. 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. Objectives of Management Information System (MIS): An effective MIS has the following objectives 1. Facilitate the decision making process by furnishing information in the proper time frame. This helps the decision maker to select the best course of action. 2. Provide requisite information at each level of management to carry out their functions. 3. Help in highlighting the critical factors to the closely monitored for successful functioning of the organization. 4. Support decision-making in both structured and unstructured problem environments. 5. Provide a system of people, computers, procedures, interactive query facilities, documents for collecting, sorting, retrieving and transmitting information to the users. Charactristics of Management Information System (MIS) Management Oriented: The system is designed from the top to work downwards. It does not mean that the system is designed to provide information directly to the

top management. Other levels of management are also provided with relevant information. For example, in the marketing information system, the activities such as sales order processing, shipment of goods to customers and billing for the goods are basically operational control activities. A salesman can also track this information, to know the sales territory, size of order, geography and product line, provide the system has been designed accordingly. However, if the system is designed keeping in mind the top management, then data on external competition, market and pricing can be created to know the market share of the companys product and to serve as a basis of a new product or market place introduction. Management Directed: Because of management orientation of MIS, it is necessary that management should actively direct the system development efforts. In order to ensure the effectiveness of system designed, management should continuously make reviews. Integrated: The world integration means that the system has to cover all the functional areas of an organization so as to produce more meaningful management information, with a view to achieving the objectives of the organization. It has to consider various sub-system their objectives, information needs, and recognize the interdependence, that these subsystem have amongst themselves, so that common areas of information are identified and processed without repetition and overlapping Common Data Flows: Because of the integration concept of MIS, common data flow concept avoids repetition and overlapping in data collection and storage combining similar functions, and simplifying operations wherever possible. Heavy Planning Element: A management information system cannot be established overnight. It takes almost 2 to 4 years to establish it successfully in an organization. Hence, long-term planning is required for MIS development in order to fulfill the future needs and objectives of the organization. The designer of an information system should therefore ensure that it will not become obsolete before it actually gets into operation. Flexibility and Ease Of Use: While building an MIS system all types of possible means, which may occur in future, are added to make it flexible. A feature that often goes with flexibility is the ease of use. The MIS should be able to incorporate all those features that make it readily accessible to the wide range of users with easy usability.

Function of MIS
MIS is acronym of management information system which can do collection, transmission, storage, processing, maintenance and use of information, composed of human, computer and other peripheral equipments. As an emerging science, the main task of it is to strengthen the information management of enterprises by taking advantage of modern computer and network communication technology to the largest extent, and set up the correct data based on the research of human resource, financial resource, equipments, technology, etc. owned by enterprises, and provide timely various of processed and systemized information data to the manager so as to make correct decisions and improve continuously the management level and economic benefits of enterprises. At present, MIS of enterprises has been the main resort to reform technology and improve the management level. The office and management of a enterprise will be towards a effective, rapid and paperless direction. MIS is generally used for system decision-making. For instance, enterprise employee can make use of MIS to find out problems that need to be solved urgently and feedback in time to the upper managers in order to make them understand the current progress and its shortages. The main functions of MIS are as follows? data processing It includes the collection, transmission, storage, processing and output of data. It simplifies the statistics and reduces to the lowest cost by supplying an unified format. function of prediction It predicts the future situation by applying modern mathematics, statistics or simulation. function of plan It arranges reasonably the plans of each functional department in accordance with the restrictions afforded by enterprises and provides the appropriate planning reports according to different management. function of control It monitors and inspects the operation of plans and comprises with the differences between operation and plan in accordance with the data afforded by every functional department, and be assistant to managers to control timely each method by analyzing the reasons why the differences comes into being. function of assistance It derivates instantly the best answers of related problems by applying to various of mathematics mode and analyzing a plentiful data stored in computers in the hope of using rationally human resource, financial resource, material resource and information resource for relative abundant economic benefits.

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