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1.4 MIS MEANING Management Information

Systems (MIS)

A management information system (MIS) is a computer system which is an

electronic device comprises of hardware and software that serves as the
backbone of an organization operations.

1.5 PERSPECTIVES ON INFORMATION SYSTEMS

From business point of view information systems are a part of a series of

value added activities for acquire, transforming and distributing information
that managers can use to improve decision making, enhance organizational
performance and ultimately increase firm profitability.

1.6 NATURE AND SCOPE OF MIS

MIS can be referred as a system or a process which facilitates the smooth

working of the organisation. The nature of MIS is truly manifold because
its plays a vital role in business decision, from costs to employee
management.

1.6.1 Features of MIS

• MS is used or utilised by every level of a management.

• It focuses on the strategic goals and objectives for the management.
• It’s also provides an effective system to analyse costs and revenue and
further reviews effectively and efficiently to bring a balance in
finance and costs.
• MIS is sustaining either through manual systems or automated system
or a combination of both.
• It also plays an accretive role in identifying, locating, measuring,
tackling, and limiting risks.

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Management Information • It set down a framework which includes set of rules and regulation for
System
the management to bring a clear and concise communication between
employees.
• It provides an impartial system for collecting, assessing, and
aggregating information for a business.

Scope of MIS
MIS involves in performing a number of task simultaneously such as:-
• Processing data
• Initiating transaction
• Responding to inquiries
• Producing reports and its summaries
• Manage the data created within the structure of a particular business.

1.7 COMPONENT OF MIS

1.7.1 People Resources

Its includes end users and IS specialists. End users are also called as (user
or clients) are the people who use an information system or the information
it produces.

1.7.2 Data Resources

Data resources are transformed by information processing activities into a
variety of information products for end users. Information processing
consists of input, processing, output, storage, and control activities.

1.7.3 Software Resources

Software resources includes not only the sets of operating instructions
called programs, which direct and control computer hardware, but also the
sets of information processing instructions needed by people, called
procedures.
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Management Information
Systems (MIS)

1.8 OBJECTIVES OF MIS

1.8.1 Data Capturing or Data Gathering

It is the process of gathering data from various sources. This includes
customer touch points like stores and e-commerce sites, mobile shopping,
self-checkout etc.
It can also come from output of one or more systems like sales, finances,
market analysis, operation etc. and from digital, social media sites. All data

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Management Information collected and stored in a database or in data files. The data can be stored on
System
various storage media like hard drives, DVDs etc.

1.8.2 Data Storage or Information Storage

It means storing information in a safe manner so as to make it available for
any future use. Cloud based application store data on virtual server
converting raw data into meaningful information is what experts call data
processing.

1.8.3 Data Processing

Data processing is an important function of MIS as information is the core
necessity for achieving competition advantage giving the right the
information to the right person at the right time is termed as information
distribution. The information could be in the form of a report, an image, a
message, files, and a video or even audio. The gathered data needs to be
processed in a system so that it can in help to the management. The data is
processed into information which is used for planning, controlling,
organizing, and directing functionalities at different levels of the
organization.
1.8.4 Data and Information Distribution
The Distribute Information process is responsible for getting information to
stakeholders about the project in a timely manner. It describes how reports,
and other information, are distributed and to whom. Executing the
communications management plan also occurs during this process. Data is
defined as 'groups of non-random symbols in the form of text, images, and
voice representing quantities, action and objects'. Information is interpreted
data; created from organized, structured, and processed data in a particular
context. A set of information systems physically distributed over multiple
sites, which are connected with some kind of communication network.
1.8.5 Prediction and forecasting
To facilitate comparison, information is presented in the form of charts,
tables and graphs with the help of modern arithmetic statics or simulation.
MIS can predict business trends using historical as a base. Reports are
generated based on the comparing needs to help management plain in
advance enabling each functional department to work efficiently.
1.8.6 Planning and control
One of the most important supporting tools in planning and control. It
is computerized integrated system which gives accurate information about
the past, present and projected. It helps to do analysis on variance, reason
to enjoy success and most important to take further decision. Planning
involves establishing goals and communicating these goals to employees of
the organization. The control function assesses whether goals were achieved
and is often used to evaluate the performance of employees, departments,
and the organization as a whole.
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1.9 Characteristics of MIS Management Information

Systems (MIS)

1.9.1 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.

1.9.2 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.

1.9.3 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. In other words, MIS should cater to the
specific needs of managers in an organization’s hierarchy.

1.9.4 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.
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Management Information 1.9.5 Future Oriented

System
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.

1.9.6 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.

1.9.7 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.

1.9.8 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

1.9.9 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.

1.10 ADVANTAGES OF MIS

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.

• Provide better customer service

• Increase customer revenue
• Discover new customer
• Help sales staff close deals faster
• Simplify marketing and sales processes
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1.11 ROLE OF MIS Management Information

Systems (MIS)

A management information system (MIS) plays an important role in

business organizations.

1.11.1 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.

1.11.2 Coordination among the department

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

1.11.3 Finding out the 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.
1.11.4 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.
1.11.5 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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Management Information
System
1.12 CHALLENGES OF MIS

1.12.1 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.

1.12.2 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.
1.12.3 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

1.13 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.
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• The MIS is not good if the basic data is obsolete and outdated. Management Information
Systems (MIS)

• Mostly information provided by the MIS is in quantities form. Hence,

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

1.14 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

1.15 SUMMARY

Management Information Systems (MIS), referred to as Information

Management and Systems, is the discipline covering the application of
people, technologies, and procedures collectively called information
systems, to solving business problems.

1.16 REFERENCE FOR FURTHER READING.

https://www.geektonight.com/what-is-mis/
https://www.google.com

1.17 BILBLIOGRAPGY

https://www.geektonight.com/what-is-mis/
https://www.google.com
MCQ FOR PRACTICE
Q1. The back bone of any organization is_________
a. information’
b. employee’
c. Management
d. Capital

Q2. The flow of information through MIS is

a. need dependent
b. organization dependent
c. information dependent
d. management dependent
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Management Information Q3. Internal information for MIS may come from any one of the following
System
department.
a. customers care department
b. hr department
c. marketing department
d. production department
Q4. MIS normally found in a manufacturing organization will not be
suitable in the ______.
a. service sector
b. banking sector
c. agriculture sector
d. all of the above

Q5. ______ involves the investigation of new approaches to existing

problems
a. systems analysis
b. creative analysis
c. critical analysis
d. organizational analysis



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2
MANAGEMENT INFORMATION
SYSTEMS (MIS) -II
Unit Structure
2.0 Objectives
2.1 Introduction
2.2 Impact of MIS
2.3 Functions and future of MIS
2.3.1 Data Capturing
2.3.2 Processing Data
2.3.4 Storage Information
2.3.5 Retrieval of Information
2.3.6 Dissemination of MI
2.4 MIS: A support to the management
2.4.1 Planning
2.4.2 Organization
2.4.3 Staffing
2.4.4 Directing
2.4.5 Coordinating
2.4.6 Controlling
2.5 MIS: organization effectiveness
2.5.1 Leadership
2.5.2 Communication
2.5.3 Accountability
2.5.4 Delivery
2.5.5 Performance
2.5.6 Measurement
2.6 MIS for a digital firm
2.6.1 The Network Revolution and the Internet
2.6.2 New Option for organization design: The digital firm and the
collaborative Enterprise.
2.6.3 Electronic Commerce
2.6.4 Electronic Business
2.6.5 Intranet
2.6.6 Extranet
2.6.7 Positive Impact of Information Systems
2.7 Summary
2.8 Reference for further reading

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