Management Information System (Mis)

MANAGEMENT INFORMATION SYSTEM (MIS)
What is MIS ?
Management Information System is a
computer based information system which is
basically concerned with processing data into
information which is then communicated to
the various departments in an organization to
support the operations, the management and
the decision making function in the
organization.
Definition of MIS
• Management information system, or MIS,

broadly refers to a computer based system that
provides managers with the tools to organize,
evaluate and efficiently manage departments
within an organization
What does Management Information
System (MIS) mean?
Fig. 1.1–Management Information System by Sunitha Vanze

MANAGEMENT
• MANAGEMENT is the effective utilisation of
human and material resources to achieve the
enterprise objective
• It is a process consisting of the five basic functions:
• 1 Planning
• 2 Organising
• 3 Staffing
• 4 Directing
• 5 Controlling
INFORMATION
• Information: Information, in MIS, means the processed

data that helps the management in planning, controlling
and operations.
• Data means unstructured raw facts, observations or

unevaluated messages in isolation. Data involves facts and
figures. Information on the other hand is like a finished
product.
6
DATA V INFORMATION
Salesman Code Zone tem Code Sales
SM001 North P001 475 I P001 475
SM002 East P002 500 SM001 North
………
SM002 East P002 500
……………………….
Data Processing Information
Fig 1.2- Management Information System by Dr.P.Mohanan
7
SYSTEM
. A system is an orderly grouping of
interdependent components linked together
according to a plan to achieve a specific objective.
. Human body is a system composed of various parts,

which are working together towards a common
objective , that is to live
Information System
An information system is an organized

combination of people, hardware, software,
communications network, and data resources
that collects, transforms, and disseminates
in an organization.
Components of Information System
Input
Processor
Output
People
Hardware(physical devices)
Software (information processing instructions)
Data
Network (communication channels)
Management Information System
A management Information System is
 An integrated user-machine system
 For providing information
To support the operations, management, analysis, and
decision-making functions
 In an organization
The system utilizes

 Computer Hardware and Software
 Manual Procedures
Models for analysis, planning, control and decision making
and
 A database
Why MIS ?
• Manager makes decisions all the time.
• There is an overload of information.
• All information is not useful.
• Anything which helps manager improve
his decision-making will obviously lead to
better result.
• MIS is a system, where data is the input,
which is processed to provide output in the
form of information reports, summaries, etc .
Which aid the manager’s decision-making
process.
Types of Management Information
Systems
• Executive Support Systems ("ESS") -designed to help senior
management make strategic decisions. ESS typically involve lots of data
analysis and modeling tools to help strategic decision-making.
• Decision-support systems ("DSS")-specifically designed to help

management make decisions in situations where there is uncertainty
about the possible outcomes of those decisions.
• Knowledge Management Systems ("KMS")-to help businesses create

and share information. These are typically used in a business where
employees create new knowledge and expertise - which can then be
shared by other people in the organization to create further
commercial opportunities.
13
Types of Management Information
SystemsCont…..
• Transaction Processing Systems ("TPS")-designed to process routine
transactions efficiently and accurately. Managers often use these systems to
deal with such tasks as payroll, customer billing and payments to suppliers.
• Office Automation Systems (“OAS”)-that try to improve the productivity of

employees who need to process data and information. Wide range of software
systems that exist to improve the productivity of employees working in an
office (e.g. Microsoft Office XP) or systems that allow employees to work from
home or whilst on the move.
14
How is a Management Information
System Useful in Companies?
• Planning and Control : MIS improves the quality of plants by providing relevant
information for decision – making. MIS serves as a link between managerial
planning and control. It improves the ability of management to evaluate and
improve performance.
• MIS Minimizes Information Overload : MIS change the larger amount of data
into summarized form and therefore, avoids the confusion which may arise
when managers are flooded with detailed facts.
• MIS Encourages Decentralization : Decentralization of authority is possibly

when there is a system for monitoring operations at lower levels. MIS is
successfully used for measuring performance and making necessary change in
the organizational plans and procedures.
15
How is a Management Information
System Useful in Companies?
• Cont.
Costs : Invest in a consultant to help define your core requirements that
include information for strategic planning and project management. To be
useful and successful, a management information system should focus on
company products and services, customers, operating costs, marketing
opportunities and the company's exposure to risk.
• MIS brings Coordination : MIS facilities integration of specialized activities

by keeping each department aware of the problem and requirements of
other departments. It connects all decision centers in the organization .
• MIS assembles, process , stores , retrieves , evaluates and disseminates the

information .
16
Impact of the Management
Information System
• With a good MIS support, the management of marketing , finance,

production and personnel becomes more efficient.
• The MIS begins with the definition of a data entity and its attributes,
respectively, designed for information generation in the
organisation.
• The MIS calls for a systemisation of the business operations for an

effective system design.
• This leads to streamlining of the operations which complicate the

system design.
17
Impact of the Management
Information System Cont.
• MIS improves the administration of the business by bringing a
discipline in its operations as everybody is required to follow
and use systems & procedures.
• This process brings a high degree of professionalism in the

business operations.
• Since the goals and objectives of the MIS are the products of
business goals & objectives, it helps indirectly to pull the
entire organisation in one direction towards the corporate
goals and objectives by providing the relevant information to
the people in the organisation.
18
BENEFITS OF
• Data can MISbe accessed and
easily analyzed
without time consuming manipulation and
processing.
• Decisions can be made more quickly and with

confidence that the data are both time-
relevant and accurate.
• Integrated information can be also kept in

categories that are meaningful to profitable
operation.
• Significant cost benefits, time savings,

FUNCTIONAL INFORMATION SYSTEMS
• On the basis of specific functional areas, MIS
can be categorized as follows:
1. Marketing Management Information System
2. Human Resource Information System
3. Financial Management Information System
4. Production and Inventory

Management Information System
TEAM MANAGEMENT
• Team management is the ability of an
individual or an organization to administer
and coordinate a group of individuals to
perform a task. Team management involves
teamwork, communication, objective setting
and performance appraisals.
• Human Resource Information System is the

Functional Information System used for Team
Management .
Human Resource Information System
(HRIS)
• A database system that keeps important
information about employees in a central and
accessible location.
• Feeds information into HR policy and planning

as well as other HR decision process.
HRIS Definition
• It is a systematic way of storing data and
information for each individual employee to
aid planning, decision making and submitting
of returns and reports.
• A method by which an organization collects,

analyses and reports the information about
people and job.
- Dr. Shikha N Khera -
How HRIS helps in Team Management
STAFFING :
• All managers know the importance of having

right person at the right place. To recruit the right
person for the right job requires information from
various resources. HRIS play a very important role
in providing vital information to managers so that
they can hire right person for the right job.
ORGANIZING :
It is important that organizations not only recruit the

right person for the right job but also keep an
employee motivated. Here again, HRIS plays a vital
role by helping, the managers to keep a vigil on the
staff so that nobody feels neglected. Motivation can
be given in the simplest forms, such as an email of
appreciation from the boss to the staff or wishes to a
subordinate on his birthday.
• Directing & Controlling :
Managers have to be on their toes always because the

staff needs constant direction and redirection for
countering he competitors. HRIS helps the managers and
staff require quick information for directing their
energies towards the overall goals and objectives of the
organization.
As an organization grows, it is very difficult for the

managers to be present at all the places at all the times.
Yet, he has to keep an eye on the activities of the staff.
With the help of the HRIS a manager can acquire
information regarding the staff even when he is not
physically present.
HRIS: Benefits
• Faster information process,
• Greater information accuracy,
• Improved planning and program
development, and
• Enhanced employee
communications
HRIS: Softwares
 Abra Suite
 ABS (Atlas Business Solutions)
 CORT: HRMS
 HRSOFT
 Human Resource Micro Systems
 ORACLE- HRMS
 PEOPLESOFT
 SAP HR
 SPECTRUM HR
 VANTAGE: HRA
Companies that Use Management
Information System
• Dell Company -This direct business model eliminates retailers that add
unnecessary time and cost, or who can diminish Dell's understanding of
customer expectations. They also use transaction processing system.
• HDFC- Can reach more people by more efficient way. Employees can easily
connect with other branches, customer service get improved, employees
record maintained very well.
• World Health Organization (WHO)- Health Management Information

System uses an information system specially designed to assist in the
management and planning of health programs, as opposed to delivery
care.
29
Conclusion
• Through the Management Information System, the
information can be used as a strategic weapon to
counter the threats to business, make businesses
more competitive, and bring about the
organizational transformation through integration.
MIS provides support to managers as they work to
achieve corporate goals and enables managers to
compare results to established company goals and
identify problem areas and opportunities for
improvement.
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MANAGEMENT INFORMATION SYSTEM (MIS)

• Management information system, or MIS,

Fig. 1.1–Management Information System by Sunitha Vanze

• It is a process consisting of the five basic functions:

• Information: Information, in MIS, means the processed

• Data means unstructured raw facts, observations or

Data Processing Information

Fig 1.2- Management Information System by Dr.P.Mohanan

. Human body is a system composed of various parts,

An information system is an organized

The system utilizes

• Decision-support systems ("DSS")-specifically designed to help

• Knowledge Management Systems ("KMS")-to help businesses create

• Office Automation Systems (“OAS”)-that try to improve the productivity of

• MIS Encourages Decentralization : Decentralization of authority is possibly

• MIS brings Coordination : MIS facilities integration of specialized activities

• MIS assembles, process , stores , retrieves , evaluates and disseminates the

• With a good MIS support, the management of marketing , finance,

• The MIS calls for a systemisation of the business operations for an

• This leads to streamlining of the operations which complicate the

• This process brings a high degree of professionalism in the

• Decisions can be made more quickly and with

• Integrated information can be also kept in

• Significant cost benefits, time savings,

1. Marketing Management Information System

2. Human Resource Information System

3. Financial Management Information System

4. Production and Inventory

• Human Resource Information System is the

• Feeds information into HR policy and planning

• A method by which an organization collects,

• All managers know the importance of having

It is important that organizations not only recruit the

Managers have to be on their toes always because the

As an organization grows, it is very difficult for the

• World Health Organization (WHO)- Health Management Information

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