Introduction to Management Information System

Management Information System (MIS)

MIS is defined as a system that offers data to support managerial tasks including systematic and routine planning, organizing, directing, coordinating, and staffing. In other words, MIS is an integrated computer-based information system (CBIS) built on the organization's database with the goal of producing information for the people working there by providing the appropriate information to the appropriate people at the appropriate time. The main purpose of a management information system is to provide information derived from processed data. Data creation is not done by information systems. Business functions in an organization generate, gather, record, store, process, and recover the data after it has been created. Information systems are created for job positions rather than for specific people. Regardless of the person holding the work position, the information systems are built with the duties of the position in mind and depend on the information requirements of the individual within the organizational structure. The information systems are created at various management levels. They are meant to meet the informational requirements of senior, medium, and junior management decision-makers. Information systems are made to provide managers with information in a variety of sectors, including marketing, finance, logistics, human resources, manufacturing, and materials.

A contemporary management system called MIS blends human and mechanical management. The information is provided to low level, middle level, or strategic level users in accordance using a central database as an information bank. It is the application of management ideas and techniques that use databases as data banks. It incorporates a number of subsystems into the MIS application. It maintains constant communication with the business's internal and external environments and offers a systemic corrective mechanism to efficiently address the system's changing information demands.

Management

Management is the art of planning, staffing, coordinating, and controlling and can be viewed as a process or function. It alludes to the series of tasks necessary for the manager to make decisions. In other words, management is the process of leveraging various resources to accomplish organizational goals and objectives. A group of individuals, a process, a function, or a profession can all be considered to constitute management. In addition to material, capital, and labor, resources also include management. It speaks to the kinds of duties and responsibilities carried out by managers. Such managerial tasks as organizing, planning, leading, and controlling establish the precise natures of activities. In actuality, management is the process of fulfilling the goals and objectives of an organization by making the best possible use of all of the resources at hand, including people, materials, machinery, money, processes, etc.

System

A system is a grouping of elements used to accomplish specific aims or objectives.

Resources of MIS

• People resources
• Hardware resources
• Software resources
• Data/ Information resources

Objectives of MIS

• Provides information in a timely manner to assist with decision-making. The decision-maker can then choose the optimal course of action thanks to this.
• Give each level of management the information they need to do their job.
• In both structured and unstructured problem environments, support the decision-making process.
• Give users access to a system that includes people, computers, processes, communicative query tools, and documents for gathering, storing, retrieving, and conveying information.

Limitation of MIS

• Management discretion cannot be replaced by MIS in decision-making.
• It's possible that MIS doesn't have enough adaptable characteristics to update itself quickly in a complex environment that is changing quickly.
• For making non-programmed decisions, MIS is less helpful.
• Only quantitative factors are considered in MIS.
• In organizations where information is not shared with others, MIS is less effective.

Role of MIS

MIS is essential to an organization's management, leadership, and functioning. In reality, MIS serves as a tool for information generation, communication, problem-solving, and decision-support at all levels of management. As a result, MIS meets a variety of organizational demands and aids in transaction processing, management control, and strategic planning. Additionally, MIS offers operational data for goal-setting scheduling and managing at the operational level. In business, information systems (IS) enable decision-making, company operations, and competitive strategies.

Characteristics of MIS

• Management Oriented
  • The system is constructed with a downward slope starting at the top. It does not imply that the technology is intended to deliver information to the top management directly. Relevant information is also given to the remaining management levels.
• Management Directed
  • Management needs to strongly direct the system development activities due to the management orientation of MIS.
• Integrated
  • To provide more useful management information and further the organization's goals, a system must be integrated, which implies it must occupy all of the functional areas of the organization.
• Common Data Flows
  • Common data flow concept, which is an integral part of MIS, prevents duplication and overlap in data collection and storage by merging related functions and streamlining processes whenever possible.
• Heavy Planning Element
  • It takes time to build MIS. In an organization, it takes about 4 to 5 years to establish it properly. Therefore, long-term planning is necessary for MIS development in order to meet the organization's future goals and needs.

Impact of MIS

• Influence on general productivity
• Impact on the business's functional areas.
• Affects organizational practices.
• Impact on how a firm is operated.
• Impact on the aims and objectives of the organization.

Strategic MIS (SMIS)

It is described as the activities and plans created by an organization to meet certain goals and objectives. The process of developing and putting into effect plans to meet the goals set at each organizational level, along with other unit manager, user, and management policies, is known as strategy management. As a result, MIS is that precise method for achieving competitive advantages, using IS as a strategic weapon and encouraging innovation in applying it to the demands of organizations. Strategic MIS also assists in organizing financial and human resources for tactical application. In order to remove information redundancy, inconsistency, and inefficient use of IS resources, strategic MIS encourage the integration of present IS and future IS.

Reference

Laudon, Laudon, "Management Information Systems Managing the Digital Firm", twelfth edition