1) Introduction to MIS:

Management Information System (MIS) provides information for the managerial activities in an organization. The
main purpose of MIS provides accurate and timely information necessary to facilitate the decision-making process
and enable the organizations operational functions to be carried out effectively. Management Information System
(MIS) is basically concerned with processing data into information and then communicated to the various
Departments in an organization for appropriate decision-making.
MIS concept:
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:
Management: - “Management is function to do the work at the Right time, by the right Person, For the Right Job.”

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

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

What is MIS?
Provides Right Information
To the right person
At the right place
At the right time
In the right form
At the right cost
Define MIS:
MIS 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.

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

Characteristics of a Management Information System:

1) Provides reports with fixed and standard formats
2) Uses internal data stored in the computer system
3) Requires formal requests from users

2) Components of MIS?

A management information system is made up of five major components namely people, business processes,
data, hardware, and software. All of these components must work together to achieve business objects.
People:- These are the users who use the information system to record the day to day business transactions. The
users are usually qualified professionals such as accountants, human resource managers, etc. The ICT department
usually has the support staffs that ensure that the system is running properly.
Business Procedures:-These are agreed upon best practices that guide the users and all other components on how to
work efficiently. Business procedures are developed by the people i.e. users, consultants, etc.
Data:- The recorded day to day business transactions. For a bank, data is collected from activities such as deposits,
withdrawals, etc.
Hardware:- Hardware is made up of the computers, printers, networking devices, etc. The hardware provides the
computing power for processing data. It also provides networking and printing capabilities. The hardware speeds up
the processing of data into information.
Software:- These are programs that run on the hardware. The software is broken down into two major categories
namely system software and applications software. System software refers to the operating system i.e. Windows,
Mac OS, and Ubuntu, etc. Applications software refers to specialized software for accomplishing business tasks
such as a Payroll program, banking system, point of sale system, etc.
3) 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.
Role of Management Information System follows as:
1. Helps in Decision making
2. Helps in Coordination among the Department
3. Helps in Finding out Problems
4. Helps in Comparison of Business Performance
1.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.
2.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.
3. 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.
4. 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.

4) The impact of the Management Information System?

  With a good MIS support, the management of marketing, finance, production and personnel becomes more
efficient, the tracking and monitoring the functional targets becomes easy.
 The functional managers are informed about the progress, achievements and shortfalls in the activity and
the targets. The manager is kept alert by providing certain information indicating the probable trends in the
various aspects of business.
 The manager'' attention is brought to a situation which is exceptional in nature, inducing him to take an
action or a decision in the matter.
 A disciplined information reporting system creates a structured database and a knowledge base for all the
people in the organization. The information is available in such a form that it can be used straight away or
by blending and analysis, saving the manager's valuable time.
 The MIS creates another impact in the organization which relates to the understanding of the business
itself.
 It uses a dictionary of data, entity and attributes, respectively, designed for information generation in the
organization. Since all the information systems use the dictionary, there is common understanding of terms
and terminology in the organization bringing clarity in the communication and a similar understanding of
an event in the organization.
 The MIS calls for a systemization of the business operations for an effective system design. This leads to
streamlining of the operations which complicate the system design.  
 It impacts on administration of the business by bringing a discipline in its operations everybody is required
to follow and use systems and procedures. This process brings a high degree of professionalism in the
business operations.
 Since the goals and objective of the MIS are the products of business goals and objectives, it helps
indirectly to pull the entire organization in one direction towards the corporate goals and objectives by
providing the relevant information to the people in the organization.
 5. Management control system (MCS)?

Management control system is a set of formal and informal systems to assist management in the
coordination of various activities of ana organization to setter the entire organization to words the
achievement of overall goals and objectives.
A management control system (MCS) is a system which gathers and uses information to evaluate the
performance of different organizational resources like human, physical, financial and also the organization
as a whole in light of the organizational strategies pursued.
Steps involved in management control system:
1. Establishing standards
2. Measuring actual performance
3. Compare actual performance with standard performance
4. Taking corrective action
5. Following up on corrective action

1. Establishing goals and standards:

The task of fixing goals and standards takes place while planning but it plays a big role in controlling also. This is
because the main aim of controlling is to direct a business’s actions towards its goals. If the members of an organization
know their goals clearly, they will invest their entire focus in achieving them. It is very important for managers to
communicate their organization’s goals, standards and objectives as clearly as possible. There must never be ambiguities
amongst employees in this regard. If everybody works towards common goals, it becomes easier for an organization to
flourish.
2. Measuring actual performance:
Once managers know what their goals are, they should next measure their actual performance and compare. This step
basically helps them in knowing whether their plans are working as intended. After implementing a plan, managers have
to constantly monitor and evaluate them. They must always be ready to take corrective measures if things are not
working properly. Apart from taking corrective action, this step of process control also helps managers in predicting
future problems. This way they can take measures immediately and save their business from losses. In order to compare
their actual performance, managers first have to measure it. They can do so by measuring results in monetary terms,
seeking customer feedback, appointing financial experts, etc. This can often become difficult if managers want to
measure intangible standards like industrial relations, market reputation, etc.
3. Compare actual performance with standard performance: Once identify the actual performance from all the
departments from various sources it should be compare with standard performance to know the gaps and make it
adjustments. it leads to take the corrective action where it is necessary.

4. Taking corrective action:

In case there are any differences between actual performances and standard performance managers need to take
corrective actions immediately. Timely corrective actions can reduce losses as well as prevent them from arising in the
future again. Sometimes, business organizations formulate default corrective actions in the form of policies. This,
however, can be difficult to do when it comes to complicated problems. In such cases, managers need to first quantify
the defect and prepare a course of action to remedy it. Sometimes, they may have to take extraordinary measures for
unpredictable problems.

5. Following up on corrective action:

Just taking corrective measures is not enough, managers must also take them to their logical conclusion. Even this step
requires thorough evaluations and comparisons. Managers should stick to the problem until they solve it. If they refer it
to a subordinate, they must stay around and see to it that he completes the task. They may even mentor him personally so
that he may be able to solve such problems by himself later.

6) MIS support to management?

1. MIS support to Planning: MIS provides lot of information to make plans regarding expansion of business,
improving the quality of product and service, introducing the new product development in the market.
2. MIS support to Organizing: organizing means selection of various combinations of resources to complete the
operations in smooth manner. Resources are manpower, material, machineries and methods.MIS provides sources
requirements information from all the departments.
3. MIS support to Directing: MIS directing the guidelines to the employees by various internal systems. it provides
various methods and techniques reach the information to all employees.
4. MIS support to Coordinating: MIS provides tools and techniques for coordinating efforts. It provides chance to
all managers to share their experiences; work progress related to their operations in the functional department, this
technic helps increase the coordination among the managers.
5. MIS supporting to Controlling: MIS support to management to control the various things related to human
skills, data transference, and data conversion, decision making problems, and offering data storing solutions.

7) Development process of the MIS?

In Information systems development usually three kinds of stakeholders are involving namely;

 Users – Users are the ones who use the system after it has been developed to perform their day to day
tasks.
 Project sponsors - this category of the stakeholders is responsible for the financial aspect of the project
and ensuring that the project is completed.
 Developers – this category is usually made up of systems analysts and programmers.
i. The system analysts are responsible for collecting the user requirements and writing system
requirements.
ii. The programmers develop the required system based on the system requirements that is
developed by the system analysts.

Steps involved in MIS development process:

1. System requirements analysis: Requirement analysis is the first step in MIS development process, system
analyst understand the company objectives, business process where businesses will work on the source of their
problem or the need for a change. In the event of a problem, possible solutions are submitted and analyzed to
identify the best fit for the ultimate goal(s) of the project. This is where teams consider the functional requirements
of the project or solution. It is also where system analysis takes place—or analyzing the needs of the end users to
ensure the new system can meet their expectations. Systems analysis is vital in determining what a business’s needs
are, as well as how they can be met, who will be responsible for individual pieces of the project, and what sort of
timeline should be expected.

2. Feasibility Study: it is nothing but what are the resources are required to develop the MIS.in trms of manpower,
financial resources, time limit and methods.

3. System design: System design uses the output from system analysis as its input. The main objective of system
design is to interpret the system requirements into architectural, logical and physical designs of how the information
system to be implemented. This Phase describes, in detail, the necessary specifications, features and operations that
will satisfy the functional requirements of the proposed system which will be in place. It helps for end users to
discuss and determine their specific business information needs for the proposed system. during this phase that they
will consider the essential components which are hardware and software structure networking capabilities,
processing and procedures for the system to accomplish its objectives.

4. Development: when the real work begins in particular, when a programmer, network engineer and/or database
developer are brought on to do the major work on the project. This work includes using a flow chart to ensure that
the process of the system is properly organized. The development phase marks the end of the initial section of the
process. Additionally, this phase signifies the start of production. The development stage is also characterized by
instillation and change. Focusing on training can be a huge benefit during this phase.
5. Testing: involves systems integration and system testing of programs and procedures—normally carried out by a
Quality Assurance, professional—to determine if the proposed design meets the initial set of business goals. Testing
may be repeated, specifically to check for errors, bugs and interoperability. This testing will be performed until the
end user finds it acceptable. Another part of this phase is verification and validation, both of which will help ensure
the program’s successful completion.

6. Implementation: this phase involves the actual installation of the newly-developed system. This step puts the
project into production by moving the data and components from the old system and placing them in the new system
via a direct cutover. While this can be a risky move, the cutover typically happens during off-peak hours, thus
minimizing the risk. Both system analysts and end-users should now see the realization of the project that has
implemented changes.

7. Maintenance:
Final phase involves maintenance and regular required updates. This step is when end users can fine-tune the
system, if they wish, to boost performance, add new capabilities or meet additional user requirements.

8) Types of MIS?

1. Transaction processing system:Transaction processing system produce regularly scheduled reports based on
data extracted and summarized from the firm’s underlying transaction processing systems to middle and operational
level managers to identify and inform structured and semi-structured decision problems.
2. Decision support systems (DSS):It is a computer program applications used by middle management to compile
information from a wide range of sources to support problem solving and decision making.
3. Executive information systems (EIS):It is a reporting tool that provides quick access to summarized reports
coming from all company levels and departments, such as accounting, human resources, marketing and operations.
4. Marketing information system: It’s designed specifically for managing the marketing aspects of the business.
This includes sales reports, sales force and various promotional activities information.
5. Office automation systems (OAS):Office automation system support communication and productivity in the
enterprise by automating work flow and eliminating bottlenecks. OAS may be implemented at all levels of
management.