Management Information System | Features, Need, Purpose, Objectives, Advantages & Disadvantages of MIS

The management information system (MIS), is an integrated computer system that consists of hardware and software. Its purpose is to gather data, process it, store it and produce information necessary for management to manage the organisation's operation efficiently. Images are used to generate the following types of information.

Management Information System | Features, Need, Purpose, Objectives, Advantages & Disadvantages of MIS

What's Management Information System?

The management information system (MIS), is an integrated computer system that consists of hardware and software. Its purpose is to gather data, process it, store it and produce information necessary for management to manage the organisation's operation efficiently. Images are used to generate the following types of information.

  1. Descriptive
  2. Diagnostic
  3. predictive
  4. Prescriptive

A Management Information System (MIS), which can be used to support strategic management in an organisation, can play a crucial role. It can help them achieve their objectives through data processing. MIS can also provide enormous information that can prove to be a very profitable investment.

Many good examples of MIS have been used to provide effective corporate governance in both the public and private sector. These include online banking and online insurance systems, management of education services and mobile customer services, and online competitive examinations.

This MIS example shows how to effectively manage large amounts of transactions through efficient scheduling and good operations performance.

Meaning of Management Information System

The term 'MIS' does not have a new meaning. However, its automation is newer. Previously, the MIS management system was used by managers as a resource of information. This information allowed them to plan and control various operations within the organisation. Now, the MIS management system is computerized, it has improved its accuracy and speed, which has enabled more options for solving problems as well as making decisions.

MIS offers the following information to companies:

  1. Information that is descriptive or "what is"
  2. Information that can be used to diagnose or determine if something is wrong
  3. Predictive information or "what if" information
  4. Information that is prescriptive, or "What should be done?"

Management information system can also be called information system, information and decision system and Computer-based information system.

Components Management Information System

1. Management

Management is the process of planning and controlling the operation of an organization. It is responsible for the formulation of policies, their execution and termination of employees. Managers can help you analyze the management process.

These are the following:

  • Plan
  • Personal
  • Organising
  • Directing
  • Coordinating
  • Controlling

2. Information:

Information is a latin word that means "give form to" in Latin. It is data that has been processed so that it can be meaningful for the person who received it.

3. System:

System is a group of elements. These elements are known as subsystems. Each subsystem is grouped together for a common purpose.

Definition of Management Information System

According G.B.Davis

An integrated user machine system that provides information to support operations, management and decision-making functions within an organisation is known as a management information system. It is a computer-based system that uses software and hardware, a model for planning, analysis, decision making, and control, as well as a database.

According the Kenneth Hamlett

Information system is the integration of computer systems, hardware and software to create an organization that achieves a goal.

According the Institute of Management accounts,

"Mis is a system that defines data are collected, processed and communicated to help those responsible for using resources."

According to allen s Lee,

Management information system can be described as a system that collects, processes, stores, and disseminates data. It is used to perform the management function.

Features of Management Information System

These are the main characteristics of MIS:

1 Integrative system:

An MIS (logically integrated system) is made up of subsystems, where the activities of each one are interrelated. This integration can be achieved by auto rotation of data between the subsystems.

2) Sub- system concept:

Alto system can be considered one entity but is broken down into smaller systems. One system of this nature can be implemented simultaneously for greater effectiveness.

3 Provides pertinent information to management:

Managers should only be provided with relevant information by MIS. Sometimes, it can be difficult to determine the relevant information, especially when different managers do different analyses of problems.

4) Flexible:

A MIS should be flexible enough to adapt to changing circumstances.

It should be able to expand, accommodate growth, or new types of processing activity as needed.

5) Increases productivity

The efficiency of an organization is improved by MIS in general. It facilitates efficient document preparation and provides high-quality services to individuals and organisations. It helps in organisation management and enhances the ability of managers to handle unexpected problems.

6) Coordinated system:

MIS is centrally synchronized to ensure that all components, such as data processing and office automation, intelligence, and decision support system are developed and managed in a coordinated and planned manner.

6) Feedback System:

MIS gives feedback on its efficiency and effectiveness. The system provides statistics on 'whom' and 'how much' it has been used.

8) Manage . Oriented :

MIS design is from top to bottom, but does not always start with the business goals. This means that the system can be designed keeping in mind both the operational management and the top management to end.

9) Management Directed:

Management Information System (MIS) is management-oriented. Therefore, it is vital that the management directs and develops system dynamically. Management should decide what information is needed and help to design MIS.

10) Common Database:

Because MIS is an integrated system, there are no duplication or redundancies in data collection, storage, and sharing. A master file should be kept, which can be used to access different functions from the respective reports' preparation and analysis.

Management Information System

A clear description of the requirements of an organisation, such as type and availability of information, types of stakeholders, etc., must be available at all levels of management. The following are the reasons an organisation establishes MIS:

  • Effectively store and manage data across all business functions.
  • Information delivered quickly and accurately, whenever and wherever it is needed.
  • Processing the gathered data and creating information from it.
  • Information available for production and inventory.
  • Information about the current economic situation of the company.
  • More rapid implementation of reliable data sources results.
  • Smooth flow of data at all levels of an organisation
  • Make sure you have all the information that is required to plan, organize and monitor your business processes.

The purpose and objectives of Management Information System

1 Data Capturing:

MIS collects information from many internal and external sources, either manually or electronically using computer terminals.

2 Processing of Data:

The data collected goes through several processes, including classification, classification, and summary to determine its conversion information.

3) Information storage :

You can save the MIS data, whether it is processed or unprocessed, as an organisation record. You can also use the data immediately.

4) Information Retrieval :

According to the request for different uses, information can be retrieved by MIS from its storage.

5) Information dissemination:

Information is the final product from MIS that is accessible to all users within the organisation. It can be online or periodic using a computer terminal.

The Advantages of Management Information System

1)Facilitates planning :

Management Information System is a tool that allows for effective decision-making. With increasing complexity and size of organisations, managers are now able to work remotely. MIS is a great help in these situations.

2) Minimises Information Overload :

MIS helps to organize data into smaller, more relevant pieces of decision-making. This helps to reduce the chaos caused by large amounts of unorganized data.

3) MIS Encourages Decentralization :

MIS allows decentralization of authority. This is possible because there are a minority system at lower levels for measuring performance. This allows for organisational changes and improvements in procedures and plans.

4) Coordination:

MIS connects all decision-making nodes within an organization. It helps in the assimilation specialized activities so that each department is aware of the needs and problems of others. This ensures that an organisation runs smoothly.

5) Makes Control Easier :

MIS is an important tool for managing managerial planning and control. MIS improves data processing and storage capacities, as well as reducing costs. It improves the ability of managers to evaluate and increase performance.

Disadvantage of Management Information System

1.Highly sensitive and requires constant monitoring:

MIS contains highly sensitive information about an organization that can be used to commit fraud. To prevent fraudsters from manipulating data and causing damage to businesses, it is important to filter the information.

2 Budgeting MIS is Extremely Hard :

MIS is not budgetable like all other activities. Its expense is therefore unpredictable. It is a vital and sensitive function in an organisation, but it is impossible to predict its cost.

3 Quality of Outputs Regulated by Input Quality:

The quality of the raw data used to process MIS information is a key factor in determining the quality of the information.

4) Inability to Update Itself:

MIS cannot update itself like other applications. You must manually update MIS by getting raw data and then feeding it into the system to process and update existing data.

5) Reduced Effectiveness Due to Frequent Changes In Top Management

The effectiveness of information produced by MIS is affected by frequent changes in the middle and top management levels. Reports are the result of input from the top management. Chair changes in management can lead to a change in information requirements because the new management team will need information in their own format.

6 - Takes into account only qualitative factors :

MIS only considers qualitative factors and ignores non-qualitative factors like morale, attitude, motivation, etc. This is the greatest limitation of MIS.