Management Information System (MIS)

Management Information System (MIS) is one of the five major Computer Based

Information Systems (CBIS). Its purpose is to meet the general information needs of
the managers in firm or organization. MIS is a computer based system that makes
information available to users with similar needs.
Management Information System (MIS) consists of following three pillars:
Management, Information, and System. These are explained as following below.
1. Management: art of getting things done through and with the people of in
formally organized groups.
Managerial functions:
2. (i) Panning
3. (ii) Organizing
4. (iii) Staffing
5. (iv) Directing
(v) Controlling
6. Information: data that have a meaning with a context ,where data is raw facts
about an entity (entity is the object of interest).
7. System: set of inter-related components with a clearly defined boundary
working together to achieve a common goal.
Why one should study MIS:
It may be a student aspiring to become a manager in some organisation, an
entrepreneur or a professional. Information system and information technology is a
vital component of any successful business and is regarded as a major functional area
like any other functional area of a business organization like marketing, finance,
production, human resources (HR) etc.
Information systems play following 3 vital roles for a business organisation:

1. Supports the business processes and operations of an organisation.

2. Support of decision making by employees and managers of an organisation.
3. Support the strategies of an organisation for competitive advantage.
Advantages of MIS:
 Improves quality of an organization or an information content by providing
relevant information for sound decision making.
 MIS change large amount of data into summarize form and thereby avoid
confusion which may an answer when an information officer are flooded with
detailed fact.
 MIS facilitates integration of specialized activities by keeping each department
aware of problem and requirements of other departments.
 MIS serves as a link between managerial planning and control. It improves the
ability of management to evaluate and improve performance.
Disadvantages:
 Too rigid and difficult to adapt.
 Resistance in sharing internal information between departments can reduce the
effectiveness.
 Hard to quantify benefit to justify implementation of MIS.
 Quality of output of an MIS is directly proportional to quality of input and
processes.
Major System in an Organizational Systems:
Organizational information system are logical rather than physical way of thinking
about MIS. The following are the management levels:
1. Strategic Planning Level: Plan
2. Management Control Level: Organize
3. Operational Control Level: Direct
Operational control level includes:
1. Marketing:
It is the area in which considerable effort as spent in describing how the computer
could be applied to the entire range of marketing operations.
2. Finance:
It does not embrace title of financial information system although computer based
information system in that area are common.For ex-payroll,taxation.
3. Human Resource:
It represents area where most current attention is being focused. Terms Human
Resource Information System (HRIS), and Human Resource Management System
(HRMS) are common.
4. Manufacturing:
It describes how the computer could be applied to the entire range of information
collection.
5. Information Resource:
It also embraced computer processing and applied the technology as both
conceptual information system and physical manufacturing system. For example:
quality control, cost control.
Classification by Characteristic
Based on Anthony's classification of Management, information used in business for
decision-making is generally categorized into three types −
 Strategic Information − Strategic information is concerned with long term
policy decisions that defines the objectives of a business and checks how
well these objectives are met. For example, acquiring a new plant, a new
product, diversification of business etc, comes under strategic information.
 Tactical Information − Tactical information is concerned with the information
needed for exercising control over business resources, like budgeting, quality
control, service level, inventory level, productivity level etc.
 Operational Information − Operational information is concerned with
plant/business level information and is used to ensure proper conduction of
specific operational tasks as planned/intended. Various operator specific,
machine specific and shift specific jobs for quality control checks comes
under this category.

Classification by Application
In terms of applications, information can be categorized as −
 Planning Information − These are the information needed for establishing
standard norms and specifications in an organization. This information is
 used in strategic, tactical, and operation planning of any activity. Examples of
such information are time standards, design standards.
 Control Information − This information is needed for establishing control
over all business activities through feedback mechanism. This information is
used for controlling attainment, nature and utilization of important processes
in a system. When such information reflects a deviation from the established
standards, the system should induce a decision or an action leading to
control.
 Knowledge Information − Knowledge is defined as "information about
information". Knowledge information is acquired through experience and
learning, and collected from archival data and research studies.
 Organizational Information − Organizational information deals with an
organization's environment, culture in the light of its objectives. Karl Weick's
Organizational Information Theory emphasizes that an organization reduces
its equivocality or uncertainty by collecting, managing and using these
information prudently. This information is used by everybody in the
organization; examples of such information are employee and payroll
information.
 Functional/Operational Information − This is operation specific information.
For example, daily schedules in a manufacturing plant that refers to the
detailed assignment of jobs to machines or machines to operators. In a
service oriented business, it would be the duty roster of various personnel.
This information is mostly internal to the organization.
 Database Information − Database information construes large quantities of
information that has multiple usage and application. Such information is
stored, retrieved and managed to create databases. For example, material
specification or supplier information is stored for multiple users.

Definition of Report: A business report is a document that conveys specific

information about your business to other individuals those can be investors,
employees, managers or other superior.
Report Writing Software:It consist of programs that produce both periodic
reports and special reports.
1. Periodic Reports:They are routine reports on a scheduled
time(periodically). These reports are issued weekly, quarterly, or annually.
For example, feedback.
2. Specific Reports: They are type of unscheduled report that may be
requested by managers.
Steps of writing a Report:
1. Define the problem.
2. Gather the necessary information.
3. Analyse the information.
4. Organize the information.
5. Write report.
Principles of writing a Report:
1. One should highlight the important information- managers should
not have to waste their time searching the information they need.
2. Report should be as simple as possible- should be in simple format,
consistency of language should be maintained, free from jargon etc.
3. Backup detail should be available.

Presentation Modes:

1. Graphic Form: Used when the information is not quantitative or an

overview is needed, pictures can be used.
2. Tabular Form: Frequently used, which tabulates the production
figures of one department.
3. Narrative Form: Used when the information is subjective and
quantitative.
Management by Exception:
1. Prepare the report only when exceptions occur: These report
printed only when employees work overtime, each entry on the report is
an exception.
2. By showing variance from normal: Here the reports contain the
details of the comparisons of the actual activity with the planned activity.
3. Grouping the exception together: The exceptions of special interest
for the manager can be grouped and highlighted for quick attention.
4. Highlighting exception by maintaining a certain sequence: It is
possible to sort report records into either in an ascending or descending
sequence based on one or more key fields.
Importance of writing a Report:
1. Providing a deeper insight.
2. Highlights the specific problem of a business.
3. Help adopt right marketing strategy.
4. Helps in decision making and problem solving.