Management Information System (MIS)

Management Information System [MIS]

Definition, Characteristics, Basic functions and Advantages/Disadvantages:

Definition:-

MIS is the organized approach to the study of information needs of a management at every level in making operational, tactical, and strategic decisions. Its objective is to design and implement man-machine procedures, processes, and routines that provide suitably detailed reports in an accurate, consistent, and timely manner. Modern, computerized systems continuously gather relevant data, both from inside and outside the organization. This data is then processed, integrated, and stored in a centralized database (or data warehouse) where it is constantly updated and made available to all who have the authority to access it, in a form that suits their purpose.

Characteristics of MIS:

MIS is mainly designed to take care of the needs of the managers in the organization.
MIS aids in integrating the information generated by various departments of the organization.

MIS helps in:

• Identifying a proper mechanism of storage of data.
• Establishing mechanisms to eliminate redundancies in data.
• It is a system that can be broken down into subsystems. 

The role and significance of MIS:

In business and its classification is explained. It is possible to understand the various phases of development in MIS based on the type of system required in any organization.

Functions of MIS:

1. Data processing: It includes the collection, transmission, storage, processing and output of data. It simplifies the statistics and is reduced to the lowest cost by supplying a unified format.
2. Function of prediction: It predicts the future situation by applying modern mathematics, statistics or simulation.
3. Function of plan: It arranges reasonably the plans of each functional department in accordance with the restrictions afforded by enterprises and provides the appropriate planning reports according to different management.
4. Function of control: It monitors and inspects the operation of plans and comprises with the differences between operation and plan in accordance with the data afforded by every functional department, and be assistant to managers to control timely each method by analyzing the reasons why the differences comes into being.
5. Function of assistance: It derives instantly the best answers of related problems by applying to various of mathematics’ mode and analyzing a plentiful data stored in computers in the hope of using rationally human resource, financial resource, material resource and information resource for relative abundant economic benefits. 

Disadvantages of MIS:

1. Highly sensitive and requires constant monitoring.
2. Budgeting of MIS extremely difficult.
3. Quality of outputs governed by quality of inputs.
4. Lack of flexibility to update itself.
5. Effectiveness decreases due to frequent changes in top management.
6. It takes into account only qualitative factors and ignores non-qualitative factors like the morale of worker, attitude of worker etc.