Table of Contents

1 What is MIS?
2 MIS Definition
3 MIS Meaning
4 Components of MIS
5 Objectives of MIS
5.1 Data Capturing
5.2 Processing of Data
5.3 Storage of Information
5.4 Retrieval of Information
5.5 Dissemination of Information
6 Characteristics of MIS
6.1 System Approach
6.2 Management Oriented
6.3 Need-Based
6.4 Exception Based
6.5 Future Oriented
6.6 Integrated
6.7 Long Term Planning
6.8 Sub-System Concept
6.9 Central Database
7 Advantage of MIS
8 Role of MIS
8.1 Decision making
8.2 Coordination among the department
8.3 Finding out Problems
8.4 Comparison of Business Performance
8.5 Strategies for an Organization
9 Challenges of MIS
9.1 High Cost
9.2 Training of Employee
9.3 Maintenance Cost
11 imitations of MIS
11 Requirements of Management Information System
What is MIS?
MIS is an organized integration of hardware and software technologies, data, processes, and
human elements. It is a software system that focuses on the management of information
technology to provide efficient and effective strategic decision making.

What is MIS? MIS is the acronym for Management Information Systems. MIS is a set of
procedures which, when executed, provides information to support decision making.

Manage
ment Information System

A Management Information System is

 An integrated user-machine system
 For providing information
 To support the operations, management, analysis, and decision-making
functions
 In an organization
The system utilizes
 Computer hardware & software
 Manual procedures
 Models for analysis, planning, control, and decision making, and
 A database

MIS Definition
Management Information System (MIS) is an integrated man/machine system for providing
information to hold up the operations, management and decision making functions in an
organization.G.B. Davis
A formal method of collecting timely information in a presentable form in order to facilitate
effective decision making and implementation, in order to carry out organisational
operations for the purpose of achieving the organisational goals.Walter I. Kennevan
A Management Information System is an organized portfolio of formal systems for obtaining,
processing, and delivering information in support of the business operations and
management of an organization.Zwass (1992)

MIS Meaning
MIS Meaning: A management information system is an acronym of three words, viz.,
Management, information, system. In order to fully understand the term MIS, let us try to
understand these three words.
1. Management: Management is the art of getting things done through and with the
people in formally organised groups.

2. Information: Information is data that is processed and is presented in a form

which assists decision-making. It may contain an element of surprise, reduce
uncertainty or provoke a manager to initiate an action.

3. System: A system is an orderly grouping of interdependent components linked

together according to a plan to achieve a specific goal. The term system is the most
loosely held term in management literature because of its use in different contexts.

Structure of Management Information System

The structure of MIS can be described in terms of its operating elements, decision support,
managerial activity, and organizational function.
1. Operating elements of MIS: The operational elements of MIS are:
(a) Physical components: The physical components of an information system include
i) Hardware - which refers to the physical computer instrument and related devices
performing various functions like input, output, secondary storage, CPU and
Communication.
(ii) Software - which refers to the instructions given to the hardware to perform various
operations.
(iii) Database - which is the collection of logically related and centrally controlled
records containing various stored data.
(iv) Procedures - which include the set of instructions to the users, data preparation
group, operating personnel, etc.
(v) Operating personal - they may be computer operators system analysts, programmers,
data administrators, or data preparation personnel.
 (b) Processing functions: On the basis of processing functions, information system consists
of the following:
(i) Processing transactions - transaction is an activity, which acts as the source of data.
The information system functions include the recording and measurement of these
transactions.
(ii) Maintaining master files - it involves the creation and maintenance of master files for
permanent storage of data.
(iii) Producing reports - one of the major jobs of the information system is to generate
and provide Structure of Management Information System 131 reports to the user at
various levels of management.
(iv) Processing inquiries - information systems provide responses to inquiries from
various levels.
(v) Process interactive support applications information systems provide interactive
facilities to end-user and facilitate system planning, analysis, and decision-making. They
enable the user to ask questions and receive immediate results.

(c) Output for users: The output provided by an information system to the end-user may take
any of the following forms:
(i) Transaction documents or screen - examples are purchase order, payroll, sales
invoice, etc.
(ii) Pre-planned reports containing regular contents.
(iii) Pre-planned inquiry responses.
(iv) User-machine dialog results - which refers to the way in which a user can interact
with a system to arrive at a solution.
(v) Ad hoc reports and enquiry responses - which occur at regular intervals and receive
data for analyses whose format cannot be pre-planned.
(d) Management activities
I. For Senior Management: strategic planning and policy making
II. For Middle management: tactical planning and execution
III. For Junior Management: Operational Planning and controls
IV. For Operations / staff: transaction processing and Response to queries

Components of MIS
The major components of MIS are:

Components of MIS
  People Resources: People are required for the operation of all information system.
 Data Resources: Database holds processed and organized data.
 Software Resources: It includes all sets of information processing instruction.
 Hardware Resources: Include all physical devices and materials used in
information processing.
 Process: is a step undertaken to achieve a goal.

Objectives of MIS
What is MIS objective: MIS has five major
objectives which include:
1. Data Capturing
2. Processing of Data
3. Storage
4. Retrieval
5. Dissemination
Objectives of MIS
These MIS objective are discussed below
in detail.

Data Capturing
MIS capture data from various internal and external sources of the organization.
Data capturing may be manual or through computer terminals.

Processing of Data
The captured data is processed to convert into the required information. Processing
of data is done by such activities as calculating, sorting, classifying, and
summarizing.

Storage of Information
MIS stores the processed or unprocessed data for future use. If any information is
not immediately required, it is saved as an organization record, for later use.

Retrieval of Information
MIS retrieves information from its stores as and when required by various users.

Dissemination of Information
Information, which is a finished product of MIS, is disseminated to the users in the
organization. It is periodic or online through a computer terminal.
Characteristics of MIS
What is MIS Characteristic? MIS plays a very important role in every aspect of an
organization. These characteristics are generic in nature.
Following are the characteristics of MIS:
1. System Approach
2. Management Oriented
3. Need-Based
4. Exception Based
5. Future Oriented
6. Integrated
7. Long Term Planning
8. Sub-System Concept
9. Central Database

Characteristics of MIS

System Approach
The information system follows a System’s approach. The system’s approach
implies a holistic approach to the study of system and its performance in the light
for the objective for which it has been constituted.

Management Oriented
The top-down approach must be followed while designing the MIS. The top-down
approach suggests that the system development starts from the determination of
management needs and overall business objectives.

The MIS development plan should be derived from the overall business plan.
Management oriented characteristic of MIS also implies that the management
actively directs the system development efforts.
Need-Based
MIS design and development should be as per the information needs of managers
at different levels, strategic planning level, management control level and
operational control level. In other words, MIS should cater to the specific needs of
managers in an organization’s hierarchy.

Exception Based
MIS should be developed on the exception-based reporting principle, which means
an abnormal situation, i.e. the maximum; minimum or expected values vary
beyond tolerance limits. In such situations, there should BE exception reporting to
the decision-maker at the required level.

Future Oriented
Besides exception-based reporting, MIS should also look at the future. In other
words, MIS should not merely provide past or historical information; rather it
should provide information, on the basis of projections based on which actions
may be initiated.

Integrated
Integration is a necessary characteristic of a management information system.
Integration is significant because of its ability to produce more meaningful
information.

For example, in order to develop an effective production scheduling system, it is

necessary to balance such factors as setup costs, Workforce, Overtime rates,
Production capacity, Inventory level, Capital requirements and Customer services.

Long Term Planning

MIS is developed over relatively long periods. Such a system does not develop
overnight. A heavy element of planning is involved. The MIS designer must have
the future objectives and needs of the company in mind.

Sub-System Concept
The process of MIS development is quite complex and one is likely to lose insight
frequently. Thus, the system, though viewed as a single entity, must be broken
down into digestible sub-systems which are more meaningful at the planning stage.

Central Database
A central database is a mortar that holds the functional systems together. Each
system requires access to the master file of data covering inventory, personnel,
vendors, customers, etc. It seems logical to gather data once, validate it properly
and place it on a central storage medium, which can be accessed by any other
subsystem.

Advantage of MIS
A good management information system can be used not only for the storage of
electronic data alone but must be able to support the analysis required by
management. There are many advantages of MIS which are utilised by manager
to achieve organization goal.
The following are some of the benefits of a good MIS.
 Companies are able to highlight their strengths and weaknesses due to the presence
of revenue reports, employees' performance record etc.

 Giving an overall picture of the company and acting as a communication and

planning tool.

 The availability of the customer data and feedback can help the company to align
their business processes according to the needs of the customers.

 Information is considered to be an important asset for any company in the modern

competitive world. The consumer buying trends and behaviours can be predicted
by the analysis of sales and revenue reports from each operating region of the
company.

 Better management of resources reducing the cost of operations.

 IMPROVED SECURITY : restricted access to the database server using biometric

and other security measures

 BACKUP SYSTEMS : Due to client \server architecture , the application of object

technology and use of the front end tools, the process changes can be easily carried
out in a short duration of time.

 The tools available to the decision maker are friendly whereby he is equipped to make
decision and execute it simultaneously.

 REDUCE DATA DUPLICATION

 Fast data processing and information retrieval

 Increased customer satisfaction

 Improved quantity and quality of information

 Improved quality and quantity management decisions

 Improved responsiveness number of the competitor’s condition

  Improved operational efficiency and flexibility

 Improved quality of internal and external communications

 Improved quality of planning

 Improved quality control and supervision

Limitations of MIS
Even though MIS has many benefits but it also has its limitations. Limitations of
MIS are discussed below:
 While MIS may solve some critical problems but it is not a solution to
all problems of an organization.

 It cannot meet the special demands of each person.

 MIS if designed in an improper manner does not serve the

management and hence is of little relevance.

 The MIS is not good if the basic data is obsolete and outdated.

 Mostly information provided by the MIS is in quantitive form. Hence,

it ignores the qualitative information like the attitude of an employee.

Role of MIS
A management information system (MIS) plays an important role in business
organizations.
What is MIS role: There are many roles of MIS and some of the important MIS
role are discussed below:
1. Decision making
2. Coordination among the department
3. Finding out Problems
4. Comparison of Business Performance
5. Strategies for an Organization
Role of MIS

Decision making
Management Information System (MIS) plays a significant role in the decision-
making process of any organization. In any organization, a decision is made on the
basis of relevant information which can be retrieved from the MIS.

Coordination among the department

Management Information System satisfy multiple need of an organization across
the different functional department.

Finding out Problems

As we know that MIS provides relevant information about every aspect of
activities. Hence, if any mistake is made by the management then MIS,
information will help in finding out the solution to that problem.

Comparison of Business Performance

MIS store all past data and information in its Database. That why the management
information system is very useful to compare business organization performance.

Strategies for an Organization

Today each business is running in a competitive market. An MIS supports the
organization to evolve appropriate strategies for the business to assent in a
competitive environment.

Challenges of MIS
What is MIS Challenges: There are three major challenges of MIS: high cost,
training of employees and maintenance cost. These are briefly discussed below:
 1. High Cost
2. Training of Employee
3. Maintenance Cost
High Cost
Development of new computerized based information system is a problem for the
organization due to the cost factor and it creates problems because with the change
of time there is need of up-to-date of the information system.

Training of Employee
Employees should have the capacity of learning of the information system with the
changing competitive and business environment; otherwise it will be difficult for
the organization to stay in the market.

Maintenance Cost
Sometimes a problem arises due to server crash and website crash. Sometimes it
leads to the loss of information. So, maintenance cost is needed to tackle the above
problem.

MIS - The factors of Success and Failure

Many organizations use MIS successfully, others do not. Though the hardware and the
software is the latest and has appropriate technology, its use is more for the collection and
storage of data and its elementary processing. There are some factors which make the MIS a
success and some others, which make it a failure. These factors can be summarized as
follows:

Factors Contributing to Success

If a MIS is to be success then it should have all the features listed as follows:
 The MIS is integrated into the managerial functions. It sets clear objectives to ensure
that the MIS focuses on the major issues of the business.
 An appropriate information processing technology required to meet the data
processing and analysis needs of the users of the MIS is selected.
 The MIS is oriented, defined and designed in terms of the user's requirements and its
operational viability is ensured.
 The MIS is kept under continuous surveillance, so that its open system design is
modified according to the changing information needs.
 MIS focuses on the results and goals, and highlights the factors and reasons for non
achievement.
 MIS is not allowed to end up into an information generation mill avoiding the noise
in the information and the communication system.
  The MIS recognizes that a manager is a human being and therefore, the systems must
consider all the human behavioral factors in the process of the management.
 The MIS recognizes that the different information needs for different objectives must
be met with. The globalization of information in isolation from the different
objectives leads to too much information and information and its non-use.
 The MIS is easy to operate and, therefore, the design of the MIS has such features
which make up a user-friendly design.
 MIS recognizes that the information needs become obsolete and new needs emerge.
The MIS design, therefore, has a basic potential capability to quickly meet new needs
of information.
 The MIS concentrates on developing the information support to manager critical
success factors. It concentrates on the mission critical applications serving the needs
of the top management.

Factors Contributing to Failures

Many a times MIS is a failure. The common factors which are responsible for this are listed
as follows:
 The MIS is conceived as a data processing and not as an information processing
system.
 The MIS does not provide that information which is needed by the managers but it
tends to provide the information generally the function calls for. The MIS then
becomes an impersonal system.
 Underestimating the complexity in the business systems and not recognizing it in the
MIS design leads to problems in the successful implementation.
 Adequate attention is not given to the quality control aspects of the inputs, the process
and the outputs leading to insufficient checks and controls in the MIS.
 The MIS is developed without streamlining the transaction processing systems in the
organization.
 Lack of training and appreciation that the users of the information and the generators
of the data are different, and they have to play an important responsible role in the
MIS.
 The MIS does not meet certain critical and key factors of its users such as a response
to the query on the database, an inability to get the processing done in a particular
manner, lack of user-friendly system and the dependence on the system personnel.
 A belief that the computerized MIS can solve all the management problems of
planning and control of the business.
 Lack of administrative discipline in following the standardized systems and
procedures, wrong coding and deviating from the system specifications result in
incomplete and incorrect information.
 The MIS does not give perfect information to all the users in the organization.
Requirements of Management Information System
Following are the requirements of a management information system:

1. Database
2. Qualified System and Management Staff
3. Top Management Support
4. Active Participation of Operating Management
5. Control and Maintenance of Management Information System
6. Evaluation of Management Information System

Implementation task of MIS

 Given in the form of pdf pls refer to that for reference