MANAGEMENT

INFORMATION
SYSTEM :
INTRODUCTION
Management Information Systems (MIS) is the study of people,
technology, organizations, and the relationships among them.
Management information systems (MIS) is the study of how people
use technology to manage information.
It includes both the hardware and software used to store, process,
and retrieve information. Computer science is the study of how
computers work. It includes the design and implementation of
computer systems.
MIS is the use of information technology, people, and business
processes to record, store and process data to produce information
that decision makers can use to make day to day decisions.
The full form of MIS is Management Information Systems.
The purpose of MIS is to extract data from varied sources and
derive insights that drive business growth.
TYPES OF INFORMATION
SYSTEMS
The type of information system that a user uses depends on their
level in an organization.
The following diagram shows the three major levels of users in an
organization and the type of information system that they use.
TYPES OF INFORMATION
SYSTEM
Transaction Processing Systems (TPS)
This type of information system is used to record the day to day
transactions of a business. An example of a Transaction Processing
System is a Point of Sale (POS) system. A POS system is used to record
the daily sales.
Management Information Systems (MIS)
Management Information Systems abbreviated as MIS, are used to guide
tactic managers to make semi-structured decisions. The output from the
transaction processing system is used as input to the MIS system.
Decision Support Systems (DSS)
Decision support systems are used by top level managers to make semi-
structured decisions. The output from the Management Information
System is used as input to the decision support system. DSS systems also
get data input from external sources such as current market forces,
competition, etc
MANUAL INFORMATION SYSTEMS VS
COMPUTERIZED INFORMATION SYSTEMS
(MIS)

Manual Information System

A manual information system does not use any computerized devices. The
recording, storing and retrieving of data is done manually by the people, who
are responsible for the information system.
The following are the major components of a manual information system
People –people are the recipients of information system
Business Procedures –these are measures put in place that define the rules
for processing data, storing it, analyzing it and producing information
Data –these are the recorded day to day transactions
Filing system – this is an organized way of storing information
Reports –the reports are generated after manually analyzing the data from
the filing system and compiling it.
ADVANTAGES AND DIS-ADVANTAGES OF A
MANUAL INFORMATION SYSTEM
ADVANTAGES:

The following are the advantages of manual information systems

Cost effective – it is cheaper compared to a computerized system
because there is no need to purchase expensive equipment such as
servers, workstations, printers, etc.
Flexible –evolving business requirements can easily be
implemented into the business procedures and implemented
immediately
DISADVANTAGES:
The following are some of the disadvantages of a manual information system.
Time consuming –all data entries need to be verified before filing, this is a time consuming
task when done by humans. Retrieving data from the filing system also takes a considerable
amount of time
Prone to error – the accuracy of the data when verified and validated by human beings is
more prone to errors compared to verification and validation done by computerized systems.
Lack of security – the security of manual systems is implemented by restricting access to
the file room. Experience shows unauthorized people can easily gain access to the filing room
Duplication of data –most departments in an organization need to have access to the same
data. In a manual system, it is common to duplicate this data to make it easy to accessible to
all authorized users. The challenge comes in when the same data needs to be updated
Data inconsistency – due to the duplication of data, it is very common to update data in one
file and not update the other files. This leads to data inconsistency
Lack of backups – if the file get lost or mishandled, the chances of recovering the data are
almost zero.
COMPUTERIZED INFORMATION SYSTEM

Computerized systems were developed to address the challenges of manual

information systems. The major difference between a manual and
computerized information system is a computerized system uses a
combination of software and hardware to record, store, analyze and retrieve
information.
Disadvantages:
It is expensive to set up and configure – the organization has to buy
hardware and the required software to run the information system. In
addition to that, business procedures will need to be revised, and the staff
will need to be trained on how to use the computerized information system.
Heavy reliance on technology – if something happens to the hardware or
software that makes it stop functioning, then the information cannot be
accessed until the required hardware or software has been replaced.
Risk of fraud – if proper controls and checks are not in place, an intruder
can post unauthorized transactions such as an invoice for goods that were
never delivered, etc.
MAIN POINTS
MIS stands for Management Information System. It is a collection of people,
procedures, data, and information technology that aids managers to make
informed decisions.
Computerized information systems are more efficient compared to manual
information systems. Manual information systems are cheaper compared to
computerized information systems.
Transaction processing systems (TPS) are by operational staff to record day
to day business transactions, and they are used to make structured
decisions
Management Information Systems (MIS) are used by middle-level managers
to make semi-structured decisions
Decision Support Systems are used by top level managers, and they help
top level managers to make unstructured decisions.
WHAT ARE THE BENEFITS
OF AN MIS
It allows real-time performance reports
By receiving performance reports in real-time, the organisation can
become more dynamic in its operations. Its employees may be able
to discover and respond to opportunities more quickly.
They may also be able to detect potential threats and find
appropriate solutions to avoid or minimize them.
Additionally, when everyone is better-informed about the business
operations and long-term results, their work productivity may
improve.
It generates analytical reports
The principal function of MIS is to organise and analyse data and
use it to generate informative reports. With these reports, the
organisation's management can monitor its performance and
identify new business opportunities. They can formulate plans to
improve the organisation's processes and increase its production
efficiency.
It compares projections and performances
Organisations regularly set business goals and make business and
financial forecasts, but they need to monitor their effectiveness. For
that, they must compare them with actual performances. An MIS
facilitates performance reviews and accurate comparisons with the
projections. That can enable the management to make better
It aids the work allocation process
With an MIS information system, the organisation's management
can make better decisions concerning the allocation of staff and
resources. They can review the performance reports of individual
employees and departments and identify the best performers. To
enhance work productivity and get better business results, they
can transfer the best employees to the high-performing
departments. They can also arrange for training programmes to
improve the performances of the employees and departments that
have not been doing as well.
It improves internal communication
It can facilitate communication between different employees and
departments of the organisation. They can share relevant and
timely business information, particularly about interdepartmental
work. That can prevent work delays or misuse of resources due to
any misunderstanding or lack of discussion.

For instance, when two departments require different parts or

materials that the organisation must order from a foreign supplier, it
is more convenient and economical to place an order together,
rather than separate orders that could cause delays in arrival.
Thank you
What Is Management Information System (MIS)?
Management information systems facilitate a firm’s daily
operations. It is present in every organization. Record keeping is
significantly easier with information systems. The primary role of an
information system is to simplify workflow; it saves the time and
energy of employees.
he business value of MIS departments and applications
Both MIS software and MIS departments can help companies gain a competitive advantage, as both
help organizations increase productivity by enabling workers to spend more time on value-generating
tasks.
The data managed by MIS software tools can help managers make better decisions related to sales,
manufacturing, resource allocation and more. Similarly, the MIS department plays an important role in
providing support services within an organization, such as the following:
Governance. Governance involves systems and controls over employees' use of computing systems.
The MIS department defines, manages and enforces the rules covering how and whether employees can
access the company's technologies and network infrastructure. The MIS department is responsible for IT
security and enforcing codes of conduct related to computer systems use.
Infrastructure. An organization's IT infrastructure is comprised of the technology systems that support
the business' day-to-day functioning -- for example, phones, desktop and laptop computers, servers,
application software and cloud computing. The MIS department provides internal help desk and support
services, assisting employees and troubleshooting issues related to the infrastructure.
Data management. Data management involves provisioning and managing systems that enable
employees to access and update critical business data. The MIS department is responsible for ensuring
the availability and security of the organization's data management systems.