Management Information System

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 Management Information System
• A management information system (MIS) is the backbone to a
company’s operation.
• A management information system (MIS) is a computer system that
gathers data from multiple business systems, analyzes the
information, and provides reports that help guide management in
decision-making. 
• MIS started as a data capturing and processing system and evolved
into a more complex and intelligent system.

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• A management information system (MIS) provides information which is
needed to manage organizations efficiently and effectively.
• Management information systems involve three primary resources:
 people,
 technology, and
 information or decision making.
• Management information systems are distinct from other information
systems in that they are used to analyze operational activities in the
organization.
• Academically, the term is commonly used to refer to the group of
information management methods tied to the automation or support of
human decision making, e. g. decision support systems, expert systems,
and executive information systems.

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 History of MIS
• Kenneth and Jane Laudon identify five eras of MIS evolution corresponding to
five phases in the development of computing technology:
1) mainframe and minicomputer computing,
2) personal computers,
3) client/server networks,
4) enterprise computing, and
5) cloud computing.

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 History of MIS

• 1950-1960: Electronic Data Processing (EDP)

 Electronic Data Processing (EDP) systems, also called Transaction Processing Systems (TPS),
were groundbreaking at the time.
 It was the first large-scale computer information system to centralize and process day-to-day
transactions and activities such as cash deposits, ATM transactions, and payment orders.
 Shifting from manual to electronic made transaction processing and record-keeping a much
faster process. 
 The first (mainframe and minicomputer) era was ruled by IBM and their mainframe computers

• 1960-1970: Management Information Systems (MIS)

 EDP system was upgraded to a Management Information System (MIS) that was able to
generate reports from the data it collected. MIS pulled reports from historical data to determine
cost trends, do a sales analysis, keep track of inventory, and measure production performance. 
 When managers evaluated the information in these reports, they could see which areas of the
business were underperforming and adjust decisions accordingly. 
 Microprocessors started to compete with mainframes and minicomputers and accelerated the process
of decentralizing computing power from large data centers to smaller offices.
 In the late 1970s minicomputer technology gave way to personal computers and relatively low cost
computers were becoming mass 5
• 1970-1980: Decision Support Systems (DSS)

 Decision Support System (DSS) provided historical and ad hoc reports on both internal and
external information. For example, internal sales reports and external market pricing. 
 This advancement brought a new level of decision-making to businesses. Management could
more accurately forecast sales, perform a risk analysis, and make bolder strategic decisions. 
 It was during this era that personal computers entered the workplace. PCs were connected to
the main server so information became accessible to employees throughout the company.
This led to a significant boost in productivity by share information within an enterprise giving
rise to the third (client/server) era
 With this came the need for expert skills to manage these computer networks.

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• 1980-1990: Executive Information Systems (EIS)

 As PCs put power in the hands of executives, they could purchase software tailored to their department’s needs,
such as accounting, project management, and HR systems. It resulted in multiple systems within an organization
working independently. 

 This led to Executive Information Systems (EIS), a more refined version of the DSS system. It allowed executives
to analyze their department’s output and how it impacted the business’s overall performance. 

 The fourth (enterprise) era enabled by high speed networks, tied all aspects of the business enterprise together
offering rich information access encompassing the complete management

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• 1990-2000: Enterprise Resource Management (ERP) Systems 
 Multiple information systems that were not integrated resulted in employees wasting time
duplicating information across systems. MIS had to become efficient. 
 It did that by creating Enterprise Resource Management (ERP) systems that integrated
knowledge management systems and expert systems. 
 Knowledge-based systems organize and disseminate business knowledge within an
organization. Example: placing a best practices resource on the intranet.
 Expert systems started to use artificial intelligence to provide advice and
solutions. Example: proposing faster delivery routes or assessing risk profiles for credit
applications. 

• 1990-2020: Cloud Computing

The fifth and latest (cloud computing) era of information systems employs networking technology to
deliver applications as well as data storage independent of the configuration, location or nature of
the hardware.
 This, along with high speed cellphone and wifi networks, led to new levels of mobility in which
managers access the MIS remotely with laptops, tablet pcs, and smartphones.

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 HOW IS MIS CHANGING?

• MIS systems are becoming more intelligent. Most of the trends below are not new but they will
continue to shape how management information systems function in the future.  
1. Automation and cross-functional integration
 Automation can be used for repetitive tasks and to cross-populate data with other systems.
 This frees up employees’ time to focus on higher-value tasks.
 For example, automation can track inventory and alert you when stocks are low or automatically reorder stocks when
needed without human intervention. 
2. Big data analytics
 Worldwide, around 2.5 quintillion bytes of data are being generated daily.
 From customers’ buying habits to social media interactions, data is rolling in from everywhere. 
 Management information systems not only have to cope with the influx of data, but also analyze it.
 The information gleaned can be used to make operations more efficient, improve customer service, and create
personalized marketing campaigns.

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3. Artificial intelligence (AI)
• Artificial intelligence is making waves across almost every sector. AI has been the biggest
disruptor in business in recent years.
• From chatbots to self-driving cars, AI is already a part of our lives and will continue to become
more entrenched.
• AI technology is capable of learning patterns and identifying anomalies when processing big
data. It can detect fraud and determine the risk profile of applicants applying for credit. 
4. Cyber security 
• Cybercrime is a threat every business faces. Most cyber attacks are financially motivated.
• A cyber attack can be a fatal blow to a business. Research by Fundera shows that 60% of
small businesses that experience a cyber attack go out of business within six months.
• Companies now invest heavily in protecting their data. As cybercriminals become more
sophisticated, cyber security software will have to stay one step ahead.
• Outdated technology can hold your business back. If your business still uses an old
management information system, it may be time to upgrade. A more robust MIS can enhance
productivity and improve customer service, and that ultimately leads to higher profits.

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 Components of MIS and their relationship
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 staff who 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.

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 Functions of MIS

The main goal to set up an MIS in a company is to utilize the information by its managers for managerial
purpose for decision making. MIS performs following functions to achieve organizational goal:
• To collect useful data:
MIS executes the data through computer system using the sources of an organization. The organizational
data is stored in computer system or as a paper record by its end users.
• Data Processing:
Processing data includes converting the storage data into the required information to take beneficial
actions. Data processing includes mathematical and logical operations like, calculations, sorting,
classifying and summarizing the data. The data processing signifies processing activities as:
• Organize data
• Analysis on data
• Apply statistical, mathematical, operations
• To create predictive modeling
• Research and forecasting
• Information storage and retrieval:
MIS stores data as an organizational record and processed for future use. The data organizes as a fields,
records, files and databases for future use. Information retrieval comprises to access the stored data as
per the requirements of the management users. 12
• Disseminating management information:

Information of finished product is categorizes and dispersed to the users in an

organization as per the needs.
This information could be periodic, through reports or online through
computer terminals. Figure shows various functions performed by MIS.

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  Characteristics of MIS
• System Approach

• Management Oriented

• Need-Based

• Exception Based

• Future Oriented

• Integrated

• Long Term Planning

• Sub-System Concept

• Central Database
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1. 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.
2. 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.

3. 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.
• MIS should cater to the specific needs of managers in an organization’s hierarchy.

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4. 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.
5. Future Oriented
• Besides exception-based reporting, MIS should also look at the future.
• 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.
6. 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.

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7. 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.
8. 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.
9. 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.

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 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.
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
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 Role of MIS
• A management information system (MIS) plays an important role in
business organizations
• 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

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1. 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.
2. Coordination among the department
• Management Information System satisfy multiple need of an organization across the different
functional department.
3. 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.
4. Comparison of Business Performance
• MIS store all past data and information in its Database. That is why the management information
system is very useful to compare business organization performance.

5. 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.
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 Challenges of MIS
• 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.

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 Limitations of MIS
• 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.

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Requirements of Management Information System

• Database
• Qualified System and Management Staff
• Top Management Support
• Active Participation of Operating Management
• Control and Maintenance of Management Information System
• Evaluation of Management Information System

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 Framework for Understanding MIS
• In order to understand the importance of MIS one must understand and
appreciate the role that MIS plays in an organization.
• An organization may be conceived in a lot of ways.
• One can visualize an organization as a balance sheet or a function of financial
statements
• , As a financial entity or as an organization chart delineating the decision-making
hierarchy levels and formal communication channels.
• While both views are correct, the latter view is more appropriate for
understanding an organization’s MIS.
• Anthony in his seminal work elaborated (R.A. Anthony 1965) on this view of
an organization as its hierarchy of decision-making.

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• Robert Anthony has delineated a framework which distinguishes between the different
types of planning and control process that typically occur in organizations.
• His basic thesis is that thinking of planning and control as two separate and homogeneous
activities in an organization is not only meaningless but positively dysfunctional.
• Instead of this segmentation of management planning and control activities into two
categories of planning and control, Anthony suggested that the area of management
planning and control be segmented into three categories, resisting the “natural
temptation to use as the two main divisions”, i.e.:
 planning (roughly), deciding what to do, and
 control (roughly), assuring that desired results are obtained”.
The three categories suggested by Anthony are:
i) Strategic Planning
ii) Management Control
iii) Operational Control

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 Strategic Planning
• This requires focusing on the objectives and goals of the organization, on
 changes in the objectives, on the resource requirements to fulfill the objectives
 on the guiding principles and policies that will govern the acquisition, use and
disposal of resources to attain the objectives.
• In short, this role is the most important role in the management hierarchy
and the decisions taken by managers in this role have a far-reaching impact
on the organization.
• Managers in this role set the direction in which the organization will travel.
• In terms of hierarchy, this lies at the top.

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 Managerial Control

• This requires that resources are acquired and used effectively and
efficiently to attain the objectives of the organization.
• This is a middle management role.
• Managers in this role take guidance from the strategic planning
hierarchy and control the activities of the organization such that the
goals set by the higher level are attained in an efficient and effective
manner.
• The impact of the decisions of the managers in this role is medium
term and degree.

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 Operational Control

• This requires that directives as set by the immediate higher hierarchy

is followed and that specific task/s are carried out effectively and
efficiently.
• The decisions at this level have very little impact on the organization.
• The organization behaves in a routine nature where the parameters of
the decision-making process are well laid and certain.

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• Anthony’s departure from the traditional concept of separate
planning systems and control systems is diagrammed in Figures

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Planning and control activities in different functional areas

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• Anthony’s idea of an organization’s hierarchy from the perspective of
managerial activities.

• As is clear, it is a three-level pyramid with very distinct levels. Each

level has its own set of tasks and decisions to take which have a
varying impact on the organization as a whole.
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Management Levels in Organizations
Management Strategic Management Operational
Function Planning Control Control
Planning Long-range, high Medium range, Short range, low
impact medium impact
impact
Organizing General Departmental Small unit level
framework level
Staffing Key senior people Medium level, Operational level
tactical level
Directing General and long Tactics Routine activities
range
directives
Controlling Aggregate level Periodic control Regular and
and continuous
controlling supervision
exceptions
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• For example, if we want to classify the decisions of a manufacturing
firm,
• the strategic planning will encompass the annual production planning, annual
budgeting, setting up of new plants and/or installation of new machinery to
upgrade the production process and other such activities.
• Management control activities would include monthly production planning,
maintenance planning and scheduling.
• Operational control on the other will deal with routine daily tasks of
managing and supervising shifts to exercise control over the process so that
the monthly plans and schedules as made by the management control level
managers are met.

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 Hardware and Software support for MIS
Computer System:
A computer system is a combination of an input device, a processer and an output device.
Types of Computer System:
Following are some of the types of computer systems:
A. Personal Computer:
• Personal computer is a computer designed for use by one person at a time.
• A personal computer is a small, relatively less expensive designed for an individual user. Personal computers
are used by individuals for their own work.
B. Stand-alone Computer:
• Stand-alone computer is a computer on which all of the software used is installed and on which all of
the data or files are electronically stored.
• Stand-alone computers are also known as workstations.
• C. Networked Computer:
• The networked computer may be any combination of workstations (stand-alone computers) which are
electronically connected with a central computer that acts as a server on which files and data are stored for
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access to all other computers and shared software programs.
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D. Mini-computer:
• Mini-computers are used by small businesses and firms.
• These computers are not designed for a single user. Individual department of a company or organizations
use mini-computers for specific purposes. For example, a production department can use mini-
computers for monitoring certain production process.
• Mini-computers are also known as mid range computers.
E. Mainframe Computer:
• It is another important kind of computer system. It is mainly used by large organizations or firms and
government organizations to run their business operations more efficiently and effectively.
• Mainframe computers are able to store a large amount of data.
• Basically, banks, educational institutions and insurance companies utilize mainframe computers to store
data about their customers, students and insurance policy holders.
F. Super Computer:
• Super computer is the most powerful computer in terms of performance and data processing.
• These are task specific computers used by large organizations. These computers are used for research
and exploration purposes, like NASA uses supercomputers for launching space shuttles, controlling them
and for space exploration purpose.
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 Computer Hardware:
• All physical components that constitute a computer system are known
as computer hardware.
• Computer hardware is the physical parts or components of a
computer system such as monitor, keyboard, hard disk drive etc.
• The tangible parts of a computer system are known as hardware.
• For example, the storage devices (Hard Disks, CDs etc.), mouse,
keyboard, CPU, and display devices (Monitor) are hardware.
Computer Software:
• Software is a computer program that gives instructions to computer hardware about what to do
and how to do it.
• A computer cannot do anything on its own. It must be instructed to do a job desired by us.
Computer software is a program that provides instructions to computer hardware to do a specific
task such as preparing documents, sorting information, performing computations etc.

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Computer System Hardware:

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Types of Computer Hardware:

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1. Input Devices:
• An input device is a device which allows the user to insert data into a
computer system and control the system.
• The most commonly used input devices are keyboard and mouse.
What is a keyboard?
• A keyboard is an input device that allows the user to input letters, numbers
and other symbols into a computer system.
What is a Mouse?
• It is a small handheld device which is moved across a mat or flat surface to
move the cursor on a computer screen.
• It is a pointing (hand controlled) device.
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 Processing and Internal Memory Devices:
• They are used to process data using programmed instructions. It includes motherboard,
CPU, RAM
What is a Motherboard?
• A motherboard is a very essential part of a computer system.
• It holds together very crucial parts of a computer system such as CPU (Central Processing
Unit), memory and connectors for input and output devices.
• The base of a motherboard consists of a very firm sheet of non-conductive material,
typically some sort of rigid plastic. Thin layers of copper or aluminum foil, referred to as
traces, are printed onto this sheet. These traces are very narrow and form the circuits
between the various components.
• In addition to circuits, a motherboard contains a number of sockets and slots to connect
the other components.

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What is Central Processing Unit?
• Central Processing Unit is a computer chip and memory module that performs the basic computer
functions.
• CPU is the main component of a computer system.
• It is a chip that interprets computer instructions and processes data.
• It is the part of a computer system in which operations are controlled and executed.
• Central processing unit (CPU) handles all instructions received from hardware and software
installed in a computer system.

Components of Central Processing Unit (CPU):

• Central processing unit (CPU) has two components namely, arithmetic logic unit (ALU) and control
unit (CU).
Arithmetic logic unit (ALU) performs all logical and mathematical operations whereas,
control unit (CU) give directions to all processors.

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Random Access Memory (RAM):
• It is also known as main memory, primary memory or system memory.
• Random Access Memory (RAM) is a hardware device that allows information
to be stored and retrieved on a computer.
• In RAM information is accessed randomly instead of sequentially like a CD.
• As information is accessed randomly, the computer can access the data much
faster.
• It requires power to keep the data accessible because RAM is a volatile
memory.
• When the computer is turned off, all data contained in RAM is lost.
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 Output Devices:
• An output device is a device which produces output to the user in lieu of the input
provided by him to the computer system.
• An output device is any peripheral that receives data from a computer, usually for
display, projection or physical reproduction.
• The most common output devices are monitor and printer.
Monitor:
• It is also known as video display terminal (VDT) and video display unit (VDU). Monitor
is a hardware device that encompasses a display screen for video, images, text etc.
• The early computer monitor’s were comprised of a CRT (Cathode Ray Tube), and a
fluorescent screen.
• Today, all monitors are created using flat panel display technology.

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Printer:
• A printer is an external hardware output device.
• It takes data stored in a computer system and provides hard copy of that data to
the user.
• Printers are one of the most commonly used peripherals on computers and are
commonly used to print text and photos.
• Types of Printers:
Different types of printer includes following:
1. All-in-One Printer
2. 3-D Printer
3. Laser Printer
4. Inkjet Printer
5. Dot Matrix Printer

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All –in-One Printer:
• A printer, who does various kinds of activities such as printing a document, fax, scanning etc., is known as all – in
– one printer.
• It is called all-in-one printer due to its diversified activities.
3-D Printer:
• It is also known as additive manufacturing.
• 3D printing or additive manufacturing is a process of making three dimensional solid objects from a digital file.
• It is a printing device that creates a physical object from a digital model using materials such as metal alloys,
polymers or plastics.
Laser Printer:
• It utilizes laser technology for printing.
• The laser printers are mainly used for official work.
• It is often used in corporate world, schools and other environments that require print jobs to be completed
quickly and in large quantities.
• The main advantage of a laser printer is speed.
• It prints documents, pictures etc. very quickly.
• The main disadvantage of a laser printer is its cost. It costs much more as compared to inkjet printer.

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Inkjet Printer:
• An inkjet printer is a printer that provides hard copy of a document or image by spraying ink onto
the paper.
• A typical inkjet printer can produce copy with a resolution of at least 300 dots per inch (dpi).
• Some inkjet printers can make full color hard copies at 600 dpi or more.
• An inkjet printer is mainly used for personal use. It prints documents or images by spraying streams
of quick-drying ink on paper.
• The ink is stored in disposable ink cartridges.
• A separate cartridge is used for each of the major colors. These colors are usually Black,
Red/Magenta, Green/Cyan and Yellow.
Dot matrix Printer:
• The term dot matrix refers to the process of using dots to form an image. In a dot matrix image,
the image quality is determined by the number of dots per inch.
• A dot matrix printer is a printer that produces characters and illustrations by striking pins against an
ink ribbon to print closely spaced dots in the appropriate shape. It is also known as a pin printer.
• The main disadvantage of a dot matrix printer is that it does not produce a high quality printing.

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 Storage Devices:
• A storage device is a computer hardware device that stores data and information either temporarily or
permanently. There are two types of storage devices namely, primary storage device and secondary storage
device.
Primary Storage Devices:
• It is also known as primary memory, internal memory or main memory.
• Primary storage simply means a computer’s internal hard drive.
• A primary storage device is a medium that holds memory for short periods of time while a computer is running.
• It is volatile.
• Random access memory (RAM) is a kind of primary storage.
• RAM, commonly called “memory” is considered primary storage, since it stores data that is directly accessible by
computer’s CPU.
• RAM is a high speed storage medium that can be accessed with minimal delay.
• Because the RAM is directly connected to the CPU via the memory bus, the CPU can access data stored in RAM
very quickly. For this reason, RAM is used to store data loaded by active programs and the operating system.
• It loses its content whenever it loses power that’s why it is known as volatile memory.

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• Another kind of primary storage is Read Only Memory (ROM).
• It is a non-volatile primary storage.
• It does not lose its content whenever it losses the power due to its non-volatile
characteristics.
• As its name indicates, the content stored by ROM cannot be edited, it can only be
read.
• It is useful for storing such kind of data that doesn’t require any change in future.
• Read only memory (ROM) has three types which are as follows:
1.Programmable Read Only Memory (PROM)
2.Erasable Programmable Read Only Memory (EPROM)
3.Electrically Erasable Programmable Read Only Memory (EEPROM)

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1. Programmable Read Only Memory (PROM):
• Programmable read only memory (PROM) is a kind of chip which is created blank, and
then the user may add the content in the chip as desired.
• However, once the chip is programmed it becomes read only.
2. Erasable Programmed Read Only Memory (EPROM):
• It is another kind of ROM. It involves a chip that can be reprogrammed more than once.
• A chip once programmed can be erased by exposing it to strong ultraviolet light from a
mercury-vapour light source.
• It is suitable for testing and developing new applications, because of its ability to be
reprogrammed.
3. Electrically Erasable Programmable Read Only Memory (EEPROM):
• EEPROM is user-modifiable read only memory that can be erased and reprogrammed
repeatedly through the application of higher than normal electrical voltage.
• It is a kind of read only memory whose contents can be erased and reprogrammed using
a pulsed voltage.

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Secondary Storage Devices:
• Secondary storage device is also known as external memory,
secondary memory and auxiliary storage.
• A secondary storage device is a non-volatile device that holds data
until it is deleted or overwritten.
• External hard drivers and other external media are known as
secondary storage devices.
• Following are the main types of secondary storage devices:
Hard Disk Drive
magnetic Tape
Magnetic Disk

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Hard Disk Drive:
• A hard disk drive is a non-volatile memory hardware device that permanently stores and
retrieves data
on a computer.
• It is consists of one or more platters to which data is written using a magnetic head, all
inside of an air-sealed casing.
Magnetic Tape:
• Magnetic tapes are mainly used for recording and storing data.
• It is a plastic reel similar to long lengths of movie film. A tape is usually ½” wide and 2400
feet in length.
• It is coated with particles of ferric oxide on which data can be recorded magnetically.
• The records on magnetic tape are stored in sequential order.
Magnetic Disk:
• A magnetic disk is a circular metal plate coated on both side by ferrous oxide material.
• It uses magnetization process to write, rewrite and access data.
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 STRUCTURE OF MIS:
• Structure of MIS is a difficult concept to understand because there is
no standard or universally accepted framework for describing
management information system.
• MIS structure may be described by following a variety of different
approaches, such as:
 Physical Components
Information system processing functions
Decision support
Levels of management activities and
Organizational functions

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Physical Components:
• Structure of MIS may be understood by looking at the physical
components of the information system in an organization.
• Hardware
• Software
• Database
• Procedures
• Operating personnel
• Input and Output

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 Information system processing functions:
• Information system structure can also be understood in terms of its processing
functions.
• The functions of an MIS explain what the system does.
• The main processing functions of information systems are described below.
• To process transactions: Information systems process transactions. Where transaction may be
defined as an activity taking place in an organization.
• To maintain master file: Information systems create and maintain master files in an organization.
A master file stores relatively permanent or historical data about organizational entities.
• To produce report: Reports are significant products of an information system. Many reports are
produced on a regular basis, which are called scheduled reports. An information system also
produces reports on adhoc (special) requests.
• To process enquires: An information system is used to process enquiries. For processing such
queries, the information system uses its database. These may be regular enquiries with a pre
defined format or adhoc enquiries.
• To process interactive support application: The information system contains applications
designed to support systems for planning, analysis and decision-making.
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• Various types of models
are used for processing.

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DECISION SUPPORT:
• Structure of MIS can also be described on the basis of its support in
decision-making in an organization.
• Decisions vary with respect to the structure that can be provided for
making them.
• A highly structured decision can be preplanned, whereas a highly
unstructured decision cannot.
• However, it should not be taken to necessarily mean that the decision
is automated, although many programmable decisions are automate.

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LEVELS OF MANAGEMENT ACTIVITIES:
• Management information systems support various management activities
in an organization.
• This implies that the structure of an information system can be categorized
in terms of levels of management activities.
• Anthony, on the basis of activities, has classified the management hierarchy
into three levels. These are:
 Strategic Planning Level
 Management Control Level
 Operational Control Level
• Strategic Planning deals with long-range considerations.
• Management Control Level includes acquisition and organization of
resources, structuring of work, and acquisition and training of personnel.
• Operational Control is related to short-term decisions for current
operations
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ORGANISATIONAL FUNCTIONS:
• The structure of management information system can also be
described in terms of the organizational functions.
• Though there is no standard classification of functions, a typical set of
functions in a manufacturing organization includes production, sales
and marketing, finance and accounting, materials, personnel and
information systems.

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