MIS Definition

Management Information System (MIS) is an integrated man/machine system for

providing information to hold up the operations, management and decision making
functions in an organization.G.B. Davis
A formal method of collecting timely information in a presentable form in order to
facilitate effective decision making and implementation, in order to carry out
organisational operations for the purpose of achieving the organisational goals.Walter I.
Kennevan
A Management Information System is an organized portfolio of formal systems for
obtaining, processing, and delivering information in support of the business operations
and management of an organization.Zwass (1992)

MIS Meaning
MIS Meaning: A management information system is an acronym of three words, viz.,
Management, information, system. In order to fully understand the term MIS, let us try to
understand these three words.
1. Management: Management is the art of getting things done through and with
the people in formally organised groups.

2. Information: Information is data that is processed and is presented in a form

which assists decision-making. It may contain an element of surprise, reduce
uncertainty or provoke a manager to initiate an action.

3. System: A system is an orderly grouping of interdependent components linked

together according to a plan to achieve a specific goal. The term system is the
most loosely held term in management literature because of its use in different
contexts.

Components of MIS
The major components of MIS are:
Components of MIS
 People Resources: People are required for the operation of all information
system.
 Data Resources: Database holds processed and organized data.
 Software Resources: It includes all sets of information processing instruction.
 Hardware Resources: Include all physical devices and materials used in
information processing.
 Process: is a step undertaken to achieve a goal.
As, We have covered the basic concept of management information system which
includes what is MIS, MIS definition, MIS meaning, MIS components.
Now, let us move further and try to understand MIS objectives, MIS characteristics, MIS
advantages, MIS role, MIS challenges, MIS limitations etc.

Objectives of MIS
What is MIS objective: MIS has five major objectives which include:
1. Data Capturing
2. Processing of Data
3. Storage
4. Retrieval
5. Dissemination
 Objectives of MIS
These MIS objective are discussed below in detail.
Data Capturing
MIS capture data from various internal and external sources of the organization. Data
capturing may be manual or through computer terminals.

Processing of Data
The captured data is processed to convert into the required information. Processing of
data is done by such activities as calculating, sorting, classifying, and summarizing.

Storage of Information
MIS stores the processed or unprocessed data for future use. If any information is not
immediately required, it is saved as an organization record, for later use.

Retrieval of Information
MIS retrieves information from its stores as and when required by various users.
Dissemination of Information
Information, which is a finished product of MIS, is disseminated to the users in the
organization. It is periodic or online through a computer terminal.

Characteristics of MIS
What is MIS Characteristic? MIS plays a very important role in every aspect of an
organization. These characteristics are generic in nature. 
Following are the characteristics of MIS:
1. System Approach
2. Management Oriented
3. Need-Based
4. Exception Based
5. Future Oriented
6. Integrated
7. Long Term Planning
8. Sub-System Concept
9. Central Database

Characteristics of MIS
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.

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.

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.

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.

Future Oriented
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.

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.

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.

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.

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.

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

Role of MIS
A management information system (MIS) plays an important role in business
organizations.
What is MIS role: 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

Role of MIS

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.

Coordination among the department

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

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.

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.

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.

Challenges of MIS
What is MIS Challenges: There are three major challenges of MIS: high cost, training of
employees and maintenance cost. These are briefly discussed below:
1. High Cost
2. Training of Employee
3. Maintenance Cost
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.

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.

 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.

Requirements of Management
Information System
Following are the requirements of a management information system:

1. Database
2. Qualified System and Management Staff
3. Top Management Support
4. Active Participation of Operating Management
5. Control and Maintenance of Management Information System
6. Evaluation of Management Information System
Read Complete: Requirements of Management Information System

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.

Got to Topic: 1. What is MIS? 2. MIS Definition 3. MIS Meaning 4. MIS

Components 5. MIS Objectives 6. MIS Characteristics 7. MIS Advantage 8. MIS
Role 9. MIS Challenges 10. MIS Limitations 11. Requirements of Management
Information System
Reference
1. Sadagopan, Management Information System, 2007, Prentice Hall of India.
2. McLeod, R. and George P Schell (2008). Management information systems
(10th ed.). Pearson Education India
3. C. W. Frenzel and J. C. Frenzel, 2004. “Management of Information
Technology”, 4th edition Thomson course technology, Cengage Learning.
4. Laudon, K. C. & Laudon, J. P. Management Information Systems: Managing
the Digital Firm. 10th ed. Prentice-Hall and Pearson Education, 2006.
5. http://ocw.mit.edu

FAQ
What is MIS? (Management Information Systems)
MIS is the acronym for Management Information Systems. MIS is a set of procedures
which, when executed, provides information to support decision making.
MIS Definition
Management Information System (MIS) is an integrated man/machine system for
providing information to hold up the operations, management and decision making
functions in an organization. – G.B. Davis