Meaning and Definition of Management Information System
The word “MIS” is not new,only its automation is new, earlier the Management Information System was used as a resource of information by the managers. This information would allow them to plan and control different operations used in an organization.
Now Management Information System is computerized, it has increased its accuracy and speed. Which has allowed more alternatives while solving problem as well as in decision-making.
According to Institute of Management Accounts___ “MIS is a system in which defined data are collected,processed and communicated to assist those responsible for the use of resource”.
According to G.B.Davis___” A definition of a management information system, as the term is generally understood, is an integrated, user machine system for providing information to support operations, management, and decision-making functions in an organization. The system utilises computer hardware and software, manual procedures,models for analysis,planning,control and decision-making and a database”.
Characteristics of MIS
- Integrative System
- Sub-System Concept
- Provides Relevant Information to Management
- Enhances Productivity
- Management Oriented
- Common Database
- Transforms the Data into Information
Need of MIS
- Efficiently storing and managing data of all business functional areas.
- Fast and accurate delivery of information, as and when needed .
- Processing of gathered data and developing information from it.
- Information availability for production and inventory.
- Faster implementation of results available from reliable data source.
Functions of MIS
1. Collecting Data: The main function of an MIS is to identify the information required in decision-making and organise into a database. The information is extracted from the vast data available to organisations such as personnel records,customers information,information about competitors,sales data,etc. Database refers to the collection of data stored at a convenient location with easy access for information processing by various individuals or groups.
2. Stored and Process Data: The second main task of MIS is to store and process the data in a convenient manner for managerial use.
3. Present Information to Managers: After data collection,storage and processing, MIS provides the data to the managers for managerial use.