MIS (Management

Information System)

What is MIS?
Right Information
To the right person
At the right place
At the right time
In the right form
At the right cost

What is MIS?
The three sub-components
Management, Information and System
System emphasizing a fair degree of
integration ;
Information stressing on processed data
in the context in which it is used by end
users;
Management focusing on the ultimate
use of such information systems for
managerial decision making.

What is MIS?
MIS refers broadly to a
computer-based system that
provides managers with the
tools for organizing, evaluating
and efficiently running their
departments.
Organized approach to the study
of information needs of a
management at every level in
making operational, tactical,
and strategic decisions.

 Its objective is to design and

implement man-machine
procedures, processes, and
routines that provide suitably
detailed reports in an accurate,
consistent, and timely manner.

Classification of
management in MIS
(hierarchy)

Top Management
(Strategic
decisions)
Authority mainly
lies with this level of
management.

The top level management generally

performs planning and co- ordination
function. It lays down the broad
policies and goals of the organization.
It is also answerable to the
shareholders for functioning of the
organization.

Top Management
(Strategic
decisions)
The middle
level managers
are also appointed by the top
level management.
The General Manager,
Managing Director, Chief
Executive, Board of Directors
all belong to this category.

Middle level Management

(tactical
The Middledecisions)
level management is
answerable to the top level management
for functioning of their departments.
The middle level management generally
performs organizing and directing
functions.
It implements the organizational goals
and plans according to the directions of
the top management.

Middle level Management

(tactical
decisions)
They act
as mediator between
top and lower level management
by clarifying and explaining
policies from top to lower level.
Also the middle level has to
communicate significant data
and reports from lower level to
the top level management.

Middle level Management

(tactical
decisions)

It also boosts the lower level

managers for better
performance. It even has to
train the low level managers.

The departmental heads and

the branch heads belong to
this category of management.

Lower level Management

(operational decisions)

They generally have to personally oversee

and direct the lower level employees.
This level of management generally
performs directing and controlling
functions.
They train and boost up the workers.
They look after the problems and
grievances of the workers and try to solve
them.
The foremen, supervisors
,superintendents ,etc. all
belong to
this category of management

MIS functions
Collect Data

Store And Process Data

Present information to
managers

MIS functions
Collect data:
The first function of an
MIS to determine the information
needed to make decisions and to
organize it into a data base.
Store and process data:
After creation of data a
data base must be stored and
processed in a form useful to
managers.

 Present information to
managers:
The last step is to
present information to
managers for their use.

Characteristics of MIS

Management-oriented
The basic objective of MIS is to provide
information support to the
management in the organization for
decision making.
An effective MIS starts its journey from
appraisal of management needs,
mission and goal of the business
organization.
The MIS is such that it serves all the
levels of management in an
organization i.e. top, middle and lower
level.

Management directed:
MIS 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.

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.
Integration is necessary because it
leads to retrieval of more
meaningful and useful information.

Common data flows:

The integration of different sub
systems will lead to a common
data flow which will further help
in avoiding duplicacy and
redundancy in data collection,
storage and processing.
Common data flow tries to
utilize minimum data processing
effort.

Heavy planning-element:
the system expert has to keep 2
things in mind
one is that he has to keep future
objectives as well as the firms
information well in advance
and also he has to keep in mind
that his MIS will not be obsolete
before it gets into action.

Sub System concept:

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 mind
that the subsystems should be easily
manageable.

Common database:
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 previously
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.

Computerized
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.

User friendly/Flexibility:
MIS has been designed flexible
enough to accommodate new
requirements.
MIS should be such that it
should be used independently
by the end user so that they
do not depend on the experts.

Structure of MIS

MIS for decision making

Structured, programmable
decision
When a decision can be programmed,
an organization can prepare a
decision rule or a decision procedure.
This can be expressed as a set of
steps to follow, a flowchart, a decision
table, or a formula.
The decision procedure will also
specify the information to be acquired
before the decision rules are applied.

 Since structured programmable

decisions can be pre specified.
The process of structured decision
making includes entering the required
input data, validation procedure to
check the input, processing of the
input using decision logic and output
of the programmed decision in a form
that is useful for action.
For instance the hiring of new IT
specialists in a firm.

 Unstructured, non programmable

decisions
The unstructured decision has no
pre-established decision procedure
The support requirements for an
unstructured decision making
include access to data and a
variety of analysis & decision
procedures.

 The data requirements are not

completely known in advance
hence data retrieval must allow
adhoc retrieval requests.
For instance, dealing with a labor
strike in a factory.

MISStructurebasedon
Managementactivity
Classification of management in MIS
(hierarchy)

MIS structure based on

Organizational functions:
Sales & Marketing
The transactions involved in this
subsystem are Sales order, promotion
order, etc.
Operational activities include hiring and
training of sales force, day to day
scheduling of sales and promotion effort,
periodic analysis of sales volume by
region, product, customer, etc.

 Managerial control concerns

comparison of overall
performance against
planned.
Strategic planning involves
new markets and marketing
strategies.

 Production
It includes planning, scheduling and
operation of production facility,
employment and training of
production personnel, quality control
and inspection. Transactions include
production order, assembly order,
finished parts tickets, scrap tickets.
Operational control requires reports
comparing actual performance to the
production schedule.

 Management control requires

summary report comparing
oval planned performance to
standard performance.
Strategic planning includes
alternative manufacturing
approach and approach to
automation.

 Logistics
Transaction process includes purchase,
manufacturing and receiving report.
Tickets for inventory, shipping and
orders.
Operational control includes past-due
purchases, shipment, out of stock
items.
Strategic planning involves analysis of
new distribution strategy, policies, etc.

 Finance & Accounting

Transaction involves credit applications, sales,
payment vouchers, checks, ledgers, stock
transfer, etc.
Operations include exception reports, records of
processing delays and reports of unprocessed
transactions.
Managerial control utilizes information on budget
vs. actual costs of financial resources and
processing accounting data.
Strategic planning includes accounting policies
for minimizing tax impact, long run strategies to
ensure adequate financing.