Management Information System | Features, Need, Purpose, Objectives, Advantages & Disadvantages of MIS

What is Management Information System ?

Management information system (MIS) can be described as an integrated computer system which consists of head and hardware and software to achieve strategic role of organisation its objective is to collect data to process and store it and produce information that is necessary for management to run the organisation operation efficiently generally and images used to be generated the following four types of information.

1. Descriptive
2. Diagnostic
3. predictive
4. Prescriptive

An Management Information System (MIS) can play a very crucial role to provide strategic support to management of an organisation to achieve a objective  through efficient data processing and MIS can provide huge information so that it provide to be very fruitful investment only its this information changes the harmful behavior of the organisation

There are various good example of MIS which provided effective corporate governance in government as well as public and private sectors such as online banking system and online insurance system, management of education services, mobile Customer services and online competitive examination

The above example of MIS provide effective handling of in enormous amount of transaction managed through effective scheduling and achieve good performance of operations.

Meaning of Management Information System

The word 'MIS' is not new, Only its automation is new earlier the MIS management information system was used as a resources of information by the managers. this information would allow them to plan and control different operation used in organisation .now, since the MIS is computerized ,it has increased its accuracy and speed which has allowed more alternatives which solving problem as well as decision making.

MIS provides the following types of information to the companies :

1. Descriptive or 'what is ' information
2. Diagnostic or 'what is wrong ' information
3. Predictive or ' what if ' information
4. Prescriptive or ' what should be done ' information

Management information system is also known as information system, the information and decision system , and the Computer Based information system.

Components of Management Information System

1. Management 

Management can be defined as the procedure of planning and regulating the operation of an organisation .  Framing of policies, its execution and stopping of employees are its key task.  The management procedure can be analysed with the help of managers actions. 

These are as follows : 

• Planning
• Staffing
• Organising
• Directing
• Coordination
• Controlling

2. Information : 

The word information is derived from latin word 'informer' which means 'give form to' information is data that has been processed and retrieved in such a way to that it is meaningful to person who received it.

3. System : 

 A group of elements is called system these elements are called subsystem. All subsystem are grouped together to serve a common purpose.

Definition of Management Information System

 According to G.B.Davis,

" a definition of an management information system, and the term is generally understood, is an integrated user machine system for providing information to support operation, management, and decision making functions in an organisation, the system utilises computer hardware and software, manual producer ,model for analysing, planning control, and decision making and  a database".

According to the Kenneth  Hamlett, 

" information system refers to the practice of integrating computer system, hardware and software used to make an organisation that a g goal"

According to Institute of Management accounts , 

" mis is a system in which define data are collected, proceed and communicated to assist those responsible for the use of resources".

According to allen s . Lee, 

" management information system is a planned system of collecting, processing, storing and disseminating data in the form of information needed to carry out the function of management".

Features of Management Information System

The main features of MIS are as follow :

1) Integrative system : 

An MIS is logically integrated system comprising of subsystem, where activities of each are interrelated . this integration is possible by the auto rotation of data among the sub system.

2) Sub- system concept:

Alto system is considered a single entity, but a big system is divided into sub system. so that one such system can be implemented at a time , for better effectiveness.

3) Provides relevant information to management:

MIS should provide only relevant information to managers. At times , determining relevant information becomes very difficult, especially when and analyses of problems is done differently by different managers, according to the varying circumstances.thus, MIS provides relevant information and helps in reducing confusion and solving problems.

4) Flexible :

A MIS must be one that can be easily modified to changing circumstances.

It must be capable of expansion , accommodate growth or new type of processing activity and contraction as and when required.

5) Enhances productivity :

MIS oh whole improves the efficiency of an organisation. It helps in efficient document preparation, provides high level of services to individuals and external organisation, help in early detection of warning about internal and external problems ,and also in identifying opportunities. It assist in the overall management of organisation and improve the managers ability to deal with unexpected problems.

6) Co-ordinated system :

MIS is centrally synchronized  so that all its components such as data processing, office automation , intelligence and decision support system, are developed and managed in a planned and coordinated manner.

6) Feed back System :

MIS provides feedback about its own efficiency and effectiveness. The system itself provides statistics about by 'whom and 'how much' the system has been used.

8) Management Oriented : 

MIS is design from top to bottom corner but not necessarily start from the management needs of the overall business goals.  this means that the system may be developed keeping in mind the needs of the middle /operation management as well as the top management to stop .this ensures a good MIS.

9) Management Directed :

It is imperative that management should dynamically direct and development of system because Management Information System is management oriented. Management should decided that information is required and hence help in designing MIS.

10) Common Database :

Since MIS is an integrative system, it has the opportunity to avoid duplication and redundancy  in data collection, storage and sharing. One master file should be maintained , which can then use be different function areas from their respective report preparation and analysis.

Need of Management Information System

An organisation must have a very clear version about requirements such as type of information required,  type of data available , type of stakeholders  etc,  at  different levels of Management. An Organisation established and MIS for the following reasons:

• Efficiently storing and managing data of all business functional areas.
• Fast and accurate delivery of information, as and when needed.
• Processing of gathered data and developing information from it.
• Information availability for production and inventory.
• Providing information about current economic status of company.
• Faster implementation of results available from reliable data sources.
• Smooth flow of data within various levels of organisation.
• Make availability of information required for planning organizing and monitoring business process.

Purpose and Objectives of Management Information System

1) Data Capturing :

MIS  gathers information from various internal and external either manually or electronically with the use of computer terminals.

2) Processing of Data : 

The collected data goes through a number of process like calculation , sorting, classification and summary for its conversion information.

3) Storage of information : 

The processed or the  unprocessed data  stored in the MIS  for future use by saving it as an organisation record. The data may also be used immediately.

4) Retrieval Of Information :

As per the request of different uses, retrieval of information is done by MIS  from its stores.

5) Dissemination of information:

Information is the final product of MIS which is equally accessible by all users  in the  organisation. It may be periodic or  online with the use of computer terminal.

Advantages of Management Information System

1)Facilitates  planning :

Management Information System provides relevant information for efficient decision making for stop with the increasing size and complexity of organisation, managers now work remotely rather than from the operations location. MIS proves to be a big help in such scenarios.

2) Minimises Information Overload :

MIS help in  compartmentalizing data into smaller relevant parts of decision-making. This reduces the confusion of large can organised data.

3) MIS Encourages Decentralization :

MIS enables decentralization of authority. This is possible as there and minority system at lower levels of measuring performance. This helps in making changes in organisational plans and procedures.

4) Brings Co-ordination :

MIS connect all decision making nodes in an organisation . it assist in assimilation of specialized activities whereby each department becomes aware of the problems and requirement of other departments . this ensures smooth functioning of an organisation.

5) Makes Control Easier :

MIS at as an important tool to relate managerial planning and control. MIS increases the data processing and storage capacity as well as reduces the cost with the help of computer. It enhance the managements capability to evaluate and improve performance.

Disadvantage of Management Information System

1)Highly sensitive, requires constant monitoring:

MIS content highly sensitive information about an organisation which can be used for fraudulent activities. Constant monitoring and filtering is required to avoid manipulation of data by fraudster causing harm to business.

2) Budgeting of MIS is Extremely Difficult :

MIS cannot be budgeted like activities of all other department. Hence, its expense is unpredictable. Even though it forms a very sensitive and important function of organisation but it is not possible to predict its expense.

3) Quality of Outputs Governed by Quality of Input :

The quality of the information generated through MIS is dependent on the quality of raw data used for processing.

4) Lack of Flexibility to Update Itself :

MIS Cannot update itself automatically like many other application. Updating has to be done manually by obtaining raw data and feeding it into the system for processing and updating pre existing data.

5) Effectiveness Decrease Due to Frequent Changes in Top Management :

Frequent changes in middle or top management levels reduces the effectiveness of information produced through MIS, as requirements of reports are the result of input provided by the top management level . Change in management result in chair changed information requirement because new team of management will require information on their own format.

6) Takes into Account only Qualitative Factors :

MIS takes into consideration only qualitative factors, ignoring the non qualitative factors such as morale, attitude, and motivation of workers. is the biggest limitation of MIS.