MIS – Management Information Systems

Meta Description
MIS is a term that is often used in day-to-day communication to indicate that the information has
been processed and made available by a computer. Is that it? Read on to know more.

MIS – Management Information Systems

Management Information Systems have two interesting definitions. The first one is using an
information system that helps in decision making, control, coordination in an organization. The
second one says that it involves people, technology, and organizations. MIS is not merely about
programming. It is more about reports that are generated as a result of programming or other
control systems that are implemented in an organization.

MIS is used by everyone in one way or the other. For instance, someone who is paying a bill is
making a payment based on the bill received due to tracking of usage – either by time (monthly,
quarterly, etc.) or by actual consumption (for instance bought 1 kg of apples). It is also used in an
organization for hiring people or sending them out.

One of the fundamental beliefs is that information must be generated to be put to some use.
Otherwise, there is not much value in generating information at all if it cannot be used. However, in
the context of business, the purpose of MIS is to generate and maximize profits. This is achieved by
giving the managers in the organization information in a timely manner. The purpose of such
information is to allow them to make effective decisions in a short span of time.

The MIS did not always involve computers. People generated MIS even when they used manual
books and ledgers. Only that at that point in time, it took longer to generate the required
information.

If for example, when a manager needed to know which customers have not paid their dues after 90
days of bill generation, the clerks would need to look at the ledgers of the individual customers,
identify for whom the bills have been generated, and who have paid. They needed to make a list of
customers who have not paid, and further they also need to identify who have not made payments
for more than 90 days!

Sometimes, information systems are commonly used with the term MIS. However, it is to be
understood that MIS is a subset or sometimes even a product of the information systems that are
implemented in an organization.
MIS is centric to individual organizations. It uses information technology to create and increase
value. It can be differentiated from computer science in that computer science uses a variety of
software and tools that are used to generate MIS.

The MIS can be used by anyone in the organization at any level. However, the decision as to how to
generate such MIS is left to the discretion of the Information Technology team or the chief of such a
team like the Chief Information Officer (CIO). Once such decisions are made, it is the Technology
team led by the Chief Technology Officer (CTO) who creates enabling software or tools to generate
the MIS.

Once the technology is implemented the users of such systems have timely access to such
information that is relevant to them. It is important that people need to input data into the systems
to generate the required MIS and not everyone who inputs data into the system will use the MIS.

There are different kinds of MIS systems like:

a. Decision Support Systems (DSS): This is the use of computers and systems to generate
information that allows the mid-level and senior-level employees to take appropriate and
timely decisions that help the business.
b. Marketing Information Systems: This is a set of systems that generates information more for
the consumption of the marketing team
c. Human Resources Information System (HRIS): This is a system that is put in place that has
access to all information related to manpower in an organization
d. Enterprise Resource Planning (ERP): This is software that is designed to manage the flow of
information across the complete organization across all departments and functions.
e. Office Automation Systems (OAS): This is a system that automates workflow in an
organization.
f. Accounting Information Systems (AIS): this is a system that controls the use of bookkeeping
information and generates reports from it.

By implementing MIS in an organization, there can be improved efficiency that can be seen. It helps
innovation in an organization. It can present a picture of the complete organization. It serves as a
communication and planning tool. One of the disadvantages is that it is intensely dependent on
technology – computers. There is a possibility that if the inputs are not processed correctly, the
information generated can be wrong or inaccurate.
Frequently Asked Questions
Question 1:

What is MIS and what is its definition?

Answer:

MIS stands for Management Information Systems. MIS is a means to help make decisions, control,
and plan activities in an organization.

Question 2:

What are the major outputs of an MIS?

Answer:

The major outputs of an MIS are reports that are generated through it.

Question 3:

Who uses MIS?

Answer:

Anyone and everyone use MIS in one way or the other.

Question 4:

What are the advantages of using an MIS?

Answer:

The advantage of implementing MIS in an organization is improved efficiency that can be seen. It
helps innovation in an organization. It can present a picture of the complete organization. It serves
as a communication and planning tool.

Question 5:

What are the disadvantages of using an MIS?

Answer:

The disadvantages are that it is intensely dependent on technology – computers and there is a
possibility that if the inputs are not processed correctly, the information generated can be wrong or
inaccurate.
Conclusion
A management Information System is one that helps in decision making, control, coordination in an
organization. It is different from Information Systems and computer systems. Computer systems are
used to generate MIS. The advantage of implementing MIS in an organization is improved efficiency
that can be seen. It helps innovation in an organization. It can present a picture of the complete
organization. It serves as a communication and planning tool. One of the major disadvantages is that
other than being overly dependent on computers when wrong inputs are given the MIS generated
could be wrong or misleading.

References
https://eller.arizona.edu/departments-research/schools-departments/mis/what-is-mis

https://searchitoperations.techtarget.com/definition/MIS-management-information-systems

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