Management Information System
Q1. What is MIS? Define the characteristics of MIS? What are the basic Functions of MIS? Give someDisadvantage of MIS?
Answer:-MIS systems are extensively used in generating statistical report of any organizationwhich can be used to study management by behavior. They set objectives totheir employees using ratio analysis. Management also uses MIS for decision making from the lowlevel management to top level management. In order to perform task usingInformation systems use of technical support is required. So it is the combination of 3components i.e. organization, technology and management.MIS characteristics•It supports transaction handling and record keeping.•It is also called as integrated database Management System which supports in major functionalareas.•It provides operational, tactical, and strategic level managers with east access to timely but,for the most, structured information.•It supports decision –making function which is a vital role of MIS.•It is flexible which is needed to adapt to the changing needs of the organization.•It promotes security system by providing only access to authorized users.•MIS not only provides statistical and data analysis but also works on the basis on MBO(management by objectives). MIS is successfully used for measuring performance and making necessary change in the organizational plans and procedures. It helps to build relevant and measurable objectives, monitor results, and sendalerts.Basic Function of MISThe main functions of MIS are:•Data Processing: Gathering, storage, transmission, processing and getting output of the data. Making thedata into information is a major task.•Prediction: Prediction is based on the historical data by applying the prior knowledge methodology by using modern mathematics, statistics or simulation. Prior knowledgevaries on the application and with different departments.•Planning: Planning reports are produced based on the enterprise restriction on the companies and helps in planning each functional department to work reasonably.•Control: MIS helps in monitoring the operations and inspects the plans. It consists of differences betweenoperation and plan with respect to data belonging to different functional department. It controls thetimely action of the plans and analyzes the reasons for the differences between the operations and plan. Thereby helps managers to accomplish their decision making task successfully•Assistance: It stores the related problems and frequently used information to apply them for relative economic benefits. Through this it can derive instant answers of the related problem.Disadvantages of MISThe following are some of the disadvantages of MIS:•MIS is highly sensitive: MIS is very helpful in maintaining logging information of an authorized user.This needs to monitor constantly.•Quality of outputs is governed by quality of inputs.•MIS budgeting: There is difficulty in maintaining indirect cost and overheads. Capturing theactual cost needs to have an accrual system having true costs of outputs which is extremely difficult. It has been difficult to establish definite findings.•MIS is not flexible to update itself for the changes.•The changes in the decision of top level management decrease its effectiveness.•Information accountability is based on the qualitative factors and the factors likemorality, confidence or attitude will not have any base.