UNIT – I
Management Information Systems - An Overview
Introduction to MIS- Meaning and Roles of MISObjectives of MIS – Characteristics of MIS –
Application of MIS – Accounting and Finance
Management - Marketing ManagementMaterials Management – Production
Management -Personnel Management
Introduction to MIS
Today the need for an updated
information has become inevitable to arrive at
an effective decision in all walks of life.
Whether it is industry, commerce, defense,
banking, education, economics or politics,
information is needed everywhere. A significant
part of an excutive’s working and personal time
is spent on recording, searching, absorbing and
Meaning and Definition of MIS
The Management Information System (MIS) is an integrated
man-machine system that provides information to support the planning
and control functions of managers in an organisation. MIS can also be
defined as the combination of human and computer-based resources
that results in the collection, storage, retrieval, communication and use
of data for efficient management of operations and for business
Definition of MIS
The Management Information System (MIS) is a concept of the last
decade or two. It has been understood and described in a number ways. It is
also known as the Information System, the Information and Decision System,
the Computer- based information System.
The MIS has more than one definition, some of which are give below.
1. The MIS is defined as a system which provides information support
making in the organization.
2. The MIS is defined as an integrated system of man and machine for
providing the information to support the operations, the management and the
decision making function in the organization.
3. The MIS is defined as a system based on the database of the
organization evolved for the purpose of providing information to the people in
4. The MIS is defined as a Computer . based Information System.
Objectives of MIS
1. Facilitate the decisions making process by furnishing information
in the proper time fame. This helps the decision maker to select the
best course of action.
2. Provider requisite information at each level of management to
carry out their functions.
3. Help in highlighting the critical factors to the closely monitored for
successful functioning of the organisation.
4. Support decision making in both structured and unstructured
5. Provide a system of people, computers, procedures, interactive
query facilities, documents for collecting, storing, retrieving and
transmitting information to the users.
Characteristics of MIS
I. Management-oriented: The basic objective of MIS is to provide information
support to the management in the organization for decision making. So an
effective MIS should start its journey from appraisal of management needs,
mission and goal of the business organization. It may be individual or collective
goals of an organization. The MIS is such that it serves all the levels of
management in an organization i.e. top, middle and lower level.
II. Management directed: When MIS is management-oriented, it should be
directed by the management because it is the management who tells their needs
and requirements more effectively than anybody else. Manager should guide the
MIS professionals not only at the stage of planning but also on development,
review and implementation stages so that effective system should be the end
product of the whole exercise in making an effective MIS.
III. Integrated: It means a comprehensive or complete view of all the sub systems
in the organization of a company. Development of information must be integrated
so that all the operational and functional information sub systems should be
worked together as a single entity. This integration is necessary because it leads to
IV. Common data flows: The integration of different sub systems will lead to
a common data flow which will further help in avoiding duplicity and
redundancy in data collection, storage and processing. For example, the
customer orders are the basis for many activities in an organization viz.
billing, sales for cashing, etc. Data is collected by a system analyst from its
original source only one time. Then he utilizes the data with minimum number
of processing procedures and uses the information for production output
documents and reports in small numbers and eliminates the undesirable data.
This will lead to elimination of duplication that simplify the operations and
V. Heavy planning-element: The preparation of MIS is not a one or two day
exercise. It usually takes 3 to 5 years and sometimes a much longer period. So
the system expert has to keep 2 things in mind – one is that he has to keep
future objectives as well as the firm’s information well in advance and also he
has to keep in mind that his MIS will not be obsolete before it gets into action.
VI. Sub System concept:When a problem is seen in 2 sub parts, then the
better solution to the problem is possible. Although MIS is viewed as a single
entity but for its effective use, it should be broken down in small parts or
subsystems so that more attention and insight is paid to each sub system.
Priorities will be set and phase of implementation will be made easy. While
making or breaking down the whole MIS into subsystems, it should be kept in
VII. Common database:This is the basic feature of MIS to achieve the
objective of using MIS in business organizations. It avoids duplication of files
and storage which leads to reduction in costs. Common database means a
“Super file or Master file” which consolidates and integrates data records
formerly stored in many separate data files. The organization of the database
allows it to be accessed by each subsystem and thus, eliminates the necessity
of duplication in data storage, updating, deletion and protection.
VIII. Computerized: MIS can be used without a computer. But the use of
computers increases the effectiveness and the efficiency of the system. The
queries can be handled more quickly and efficiently with the computerized
MIS. The other benefits are accuracy, storage capacity and timely information.
IX. User friendly/Flexibility: An MIS should be flexible i.e. there should be
room for further modification because the MIS takes much time in preparation
and our environment is dynamic in nature.MIS should be such that it should be
used independently by the end user so that they do not depend on the experts.
X. Information as a resource: Information is the major ingredient of any
MIS. So, an MIS should be treated as a resource and managed properly
Role of MIS
♣It can be compared with the heart in the body.
That is, information is the blood and MIS is the heart.
♣The system ensures that an appropriate data is
collected from the various sources, processed and
sent further to the needy destinations.
♣The system is expected to fulfill the
information needs of individual, group of individuals,
the management functionaries: the managers and top
♣The MIS satisfies the diverse needs through
Query Systems, Analysis Systems, Modeling Systems,
Decision Support Systems.
MIS helps in:♦Strategic Planning
Helps Middle Management:♦Short term planning
♦Controlling the business functions.
Helps Top Management:♦Goal setting
♦Evolving the business plans and their
Application of MIS
1. Personnel management
2. Production management
3. Financial management
4. Material management
5. Marketing management
It has a primary function of providing suitable manpower
in number and certain ability, skill and knowledge, as the
business organizations demands from time to time.
Its goal is to control personnel cost through continuous
increase in manpower productivity by resorting the following
- HRD through training and upgrading the skills.
- Motivation through leadership and job enrichment.
- Promotion and rewards through performance
- Structuring the organization.
> Personal application form
> Appointment letter
> Attendance and leave records
> Bio data
> Appraisal form
> Productivity data on jobs
> Wages / salary agreement
> Record of complaints, grievance, accidents
> Industry data of wage, salary structure
>Industry data on manpower, skill, qualifications
Its function has a primary
objective of meeting the financial
needs of the business, from time to
time, by the way of providing working
capital and long-term capital to run the
business with the goal of containing the
cost of the capital at minimum.
Declaration of audit financial
results, submit all reports and returns
to the Government and Tax authorities.
>Cash flow projections
>Capital budgeting and ROI analysis
>Expense analysis, auditing and control
> Quantity of Production with respect to a time
> Material requirement and its usage
> Rejection quantity at each intermediate stage
and the final stage
> Breakdown incidence
> Labour complement with respect to a period
> Use of Power, fuel and Consumables.
> Machine and facilities utilisation
> Labour hours
> Salary/wages deductions
> Loans and deductions
> Production data
> Family data
It deals with satisfying the consumer. The scope of
function starts from identifying the need of
customer, evolving product concept, designing the
product, positioning the product in market and
selling in the appropriate price.
Sales promotion campaign
Stocking of products
To provide material for production,
maintenance and services at economical
prices, in an appropriate quantity and
quality with easy stock outs and with no
extra cost of carrying the inventory.
The scope of materials management
function is procurement, stocking control of
Input Transaction documents
> Purchase acquisition
> Purchase order
> Receipt of goods
> Return of goods to supplier
> Issue for production
> Return from production
> Certification of bill for payment
Production Management (PM)
The Objective of PM function is, to
provide manufacturing services to the
>This involves the manufacture of products
of a certain specified quality and within
certain costs in a stipulated time fulfilling
the promises given to the customer.
>The PM function is supported by other
functions, viz. Production Planning and
Control, Industrial Engineering,
Maintenance and Quality Control.
Input transaction documents
> Production Programme
>Process Planning Sheet
>Job status advice
>Quality Assurance rating form
>Finished goods advice
MIS is the system, which makes available the
right information to the:
At Right Place
At right time
In the right format/form
At right cost.
The term Business Intelligence (BI) represents the tools and
systems that play a key role in the strategic planning process of the
corporation. These systems allow a company to gather, store,
access and analyze corporate data to aid in decision-making.
Generally these systems will illustrate business intelligence in the
areas of customer profiling, customer support, market research,
market segmentation, product profitability, statistical analysis, and
inventory and distribution analysis to name a few.
Most companies collect a large amount of data from their
business operations. To keep track of that information, a business
and would need to use a wide range of software programs , such as
Excel, Access and different database applications for various
departments throughout their organization. Using multiple
software programs makes it difficult to retrieve information in a
timely manner and to perform analysis of the data.