A management information system (MIS) is a system or process that

provides information needed to manage organizations effectively .

Management information systems are regarded to be a subset of the
overall internal controls procedures in a business, which cover the
application of people, documents, technologies, and procedures used by
management accountants to solve business problems such as costing a
product, service or a business-wide strategy. Management information
systems are distinct from regular information systems in that they are
used to analyze other information systems applied in operational
activities in the organization. Academically, the term is commonly used
to refer to the group of information management methods tied to the
automation or support of human decision making, e.g. Decision Support
Systems, Expert systems, and Executive information systems.

At the start, works in businesses and other organizations, internal

reporting was made manually and only periodically, as a by-product of
the accounting system and with some additional statistic(s), and gave
limited and delayed information on management performance.
Previously, data had to be separated individually by the people as per the
requirement and necessity of the organization. Later, data was
distinguished from information, and instead of the collection of mass of
data, important, and to the point data that is needed by the organization
was stored.

Early on, business computers were mostly used for relatively simple
operations such as tracking sales or payroll data, often without much
detail. Over time these applications became more complex and began to
store increasing amounts of information while also interlinking with
previously separate information systems. As more and more data was
stored and linked man began to analyze this information into further
detail, creating entire management reports from the raw, stored data. The
term "MIS" arose to describe these kinds of applications, which were
developed to provide managers with information about sales,
inventories, and other data that would help in managing the enterprise.
Today, the term is used broadly in a number of contexts and includes
(but is not limited to): decision support systems, resource and people
management applications, ERP, SCM, CRM, project management and
database retrieval application.

An 'MIS' is a planned system of the collecting, processing, storing and

disseminating data in the form of information needed to carry out the
functions of management. In a way it is a documented report of the
activities that were planned and executed. According to Philip Kotler "A
marketing information system consists of people, equipment, and
procedures to gather, sort, analyze, evaluate, and distribute needed,
timely, and accurate information to marketing decision makers."

The terms MIS and information system are often confused. Information
systems include systems that are not intended for decision making. The
area of study called MIS is sometimes referred to, in a restrictive sense,
as information technology management. That area of study should not be
confused with computer science. IT service management is a
practitioner-focused discipline. MIS has also some differences with
Enterprise Resource Planning (ERP) as ERP incorporates elements that
are not necessarily focused on decision support.

Any successful MIS must support a businesses Five Year Plan or its
equivalent. It must provide for reports based up performance analysis in
areas critical to that plan, with feedback loops that allow for titivation of
every aspect of the business, including recruitment and training
regimens. In effect, MIS must not only indicate how things are going,
but why they are not going as well as planned where that is the case.
These reports would include performance relative to cost centers and
projects that drive profit or loss, and do so in such a way that indentifies
individual accountability, and in virtual real-time.

Professor Allen S. Lee states that "...research in the information systems

field examines more than the technological system, or just the social
system, or even the two side by side; in addition, it investigates the
phenomena that emerge when the two interact."
Overview of Marketing Management Information
System (MIS)
Management information systems provide decision-
Maker’s information and feedback on daily operations. Additionally,
management information systems can be used strategically, often
incorporating Web technology.

Marketing MIS: Marketing Management Information System (MIS)

supports managerial activities in product development, distribution, pricing
decisions, promotional effectiveness and sales forecasting.

Inputs to Marketing MIS

 Strategic plan and corporate policies

 The TPS
 External sources:
o The competition
o The market

Marketing MIS Subsystems and Outputs

 Marketing research
o Web based market research
 Product development
 Promotion and advertising
 Product pricing
Overview of Human Resource MIS
Human Resources MIS: Human Resource Management Information
System (MIS) is concerned with all of the activities related to employees
and potential employees of the organization.

Inputs to the Human Resource MIS

 Strategic plan or corporate policies

 The TPS:
o Payroll data
o Order processing data
o Personnel data
 External sources

Human Resource MIS Subsystems and Outputs

 Human resource planning

 Personnel selection and recruiting
 Training and skills inventory
 Scheduling and job placement
 Wage and salary administration

Other MISs

 Accounting MISs
o Provides aggregated information on accounts payable,
accounts receivable, payroll, and other applications.
 Geographic information systems (GISs)
o Enables managers to pair pre-drawn maps or map outlines with
tabular data to describe aspects of a particular geographic
region.
 MANAGEMENT INFORMATION SYSTEM

SUBMITTED TO: PROF. LAKSHMI RAI

SUBMITTED BY:
PRATEEK AGARWAL
08D1638

Management Information System

According to Comptroller’s Handbook May, 1995 Management Information System: is defined to be a
system or process that provides information necessary to manage an organization effectively. MIS
generates information to enhance the long term strategic goals and objectives, everyday financial
accounts system …..Are generally considered essential components of prudent and reasonable business
decisions. It is there to ensure consistent approach to the development use and review of the
management information system.

Communication in organizations Edition .defined Management information system to be a system that

gathers more comprehensive data organizes and summarizes it in a form that is of value to functional
managers, and then provides those same managers with the information the need to do their work.

Difference between data and information.

Data or raw data is the. Basic facts and figures of operational life. Such as output figure, hours worked
and so, when taken by itself have no meaning.

Information or MIS are the various procedures and methods used to convert the data into useful
information.

Raw data Management Information System Process Useful

 Information

Decisions User Processes

Diagram of the management information system in decision making.

In the diagram above

o Raw data refers to the data in its natural form, it does not make sense.
o MIS process is the translation or conversion of the raw data into understandable information.
o Useful information this stage is the finished product. Information is ready to be used.
o User processes this is where the information analyzing of the data is done and the useful
information go unto the next stage.
o Decisions it put to the test, it is used for what it was created for.

Useful Information

Useful information can be see as any information communicated that is important to or relates to a
specific topic. Information is only deemed useful if it meets the required need.

Characteristics of useful information:

Timeliness: to simplify prompt decision making, the MIS must be able to provide and distribute current
information to appropriate users. The system should be able to quickly collect, edit data, summarize
results and be able to adjust and correct errors promptly.

Accuracy: a sound automated and manual internal control system must exist throughout all information
system processing activities.

Consistency: because data collection and reporting processes will change overtime, to be reliable the
data should be processed and complied to verify it authenticity.

Completeness: MIS plays an important role in decision making, that decision makers need complete and
pertinent information in a summarized report. Reports should be designed to eliminate clutter and
voluminous details thereby avoiding ‘information overload’.

Relevance: information provided to managers must be relevant (must deal with the matter at hand).
MIS must be appropriate to support the management level using it

The characteristics of useful information, is made useful due to 3 main characteristics:

Time. Information should be readily available.

Content. It must be error proof.

Form. Information should be easily understood.

Goals of the MIS

 1. Enhances communication among employees.
2. Deliver complex material through the institution.
3. Provides an objective system for recording and aggregating information.
4. Produce expenses related to labour-intensive manual activities.
5. Support the organization’s strategic goals and directions.

Steps of a Good MIS

The steps to a good MIS must include an organizational planning process inclusive of both tactical and
strategic level.

1. Investigation should be made about the information to determine if the information is viable
and if it can be used.
2. Appropriate data should be gathered.
3. Data must be summarized before the information is used.
4. Data must be analyzed to ensure the best alternative is used.
5. Accurate information transferal to gain best results.
6. Information gathered must be used in the manner suggested to accomplish organizational
objectives.

Advantages of the MIS

1. Allows managers to manipulate ‘the model ‘built into the system.
2. It helps to enhance the company or organization recruitment ability.
 3. Provides information for future budgeting.
4. Managers will also be able to check on the implementation for staffing.

Disadvantages of the MIS

1. While data was extensive, it was not necessary constructed in the way that best suit the users.
(past)b
2. Maintenance of information is too expensive.eg the super computer in organization.

Uses of the MIS

1. Problem solving.
2. Decision making.
3. Improving the quality of decision.
4. Planning.
5. Communicating information.
6. Improving the efficiency of operations.
7. Minimizing the duplication of efforts.
8. Controlling activities.

Characteristics of an effective MIS

Managers need to ensure the MIS is developed according to a sound methodology as follows:
Meeting Organizational Objectives:

The long and short term plan must be effective, the system and reports output should support
reinforcement of organizational goals, the annual operating plan and the budgetary process. A useful
business planning initiatives need a supporting long term strategic MIS.

Provide Information Flow:

All information gathered must relate to the organizational structural development corroborative and
more stable informational needs, (all information must support the facts).giving rise to effective and
easily understood tasks.

Delivery of Information:

The right quality and quantity of information must be delivered to allow managers to perform their
duties effectively and in a timely manner.

The process of establishing an effective MIS

Planning: in this process the operations and resources are assisted, to ascertain where the resources are
best useful.
Designing: the analyzing of the correct resources and equipment for the work, the direction as to how
the resources are going to be used.

Implementation: this is where the plan and the design are put into motion. This is where the true test
begins.

Improvement: this is where an organization grows after the implementation; an analysation is done to
see how effective the information system is. The analysis should show where the systems is lacking and
have not worked, so better and effective measures are put into place.

How the MIS enhances decision making.

The MIS supplies decision makers with facts; it supports and enhances the overall decision making
process. MIS enhances the job performance by providing the necessary data and information to help
management make strategic decisions.

MIS as it relates to planning:

The management information system plays a vital role in planning. The information system in any
organization is as important to a business as food is an integral to sustainability of our lives. This is how
vital the management information system is to planning. If managers have no information as to how to
run their businesses and an understanding of the purpose of the organization. The organization is
doomed to failure. The MIS provides information for planning and sustainable management.
The importance of the MIS in an organizational structure:

Management need to about to allocate the best suited persons for the job and in the right positions that
are available in the organization. Organizational structure and MIS are the veins of the organization, the
placement party it tell who goes where. An organization with out a structure is chaotic and will lead to
the complete destruction of the organization. Worker will spend more time getting work done and in
some case you will find that more that one person would have completed the same job twice. This will
cause time laps and wasting of resources, increasing the organization expense.

Improvements to MIS
The management information system was originally created between 1954 and 1964 to deal with the
accounting aspect of the organization. All financing information was stored and continually updated as
transaction where made during this period.

Today the MIS with all its technological advancements have increased both the availability and
volume of information. Management and the directors have the information available for both
planning and decision making. Which are the contributing factors of a successful business.