The information can be defined as the knowledge communicated by others or obtained

from investigation of study. However, all data received in the process are not information
unless these are processed into a usable form. With increasing use of electronic devices,
particularly computers, a great deal of attention has been given to the development of
information systems which provide relevant information to the managers concerned for the
controlling authority. The flow of information is made regular by information system,
commonly known as management information system (MIS). Thus, management
information system can be defined as the system of providing needed information to each
manager at the right time, in right form, and relevant one which aids his understanding
and stimulates his action.

The designing of computer-based MIS is based on the recognition of the fact that many
items of input data may be useful for a number of different outputs. Thus, data are not
gathered independently for special purposes, rather the same basic input data should be
made available for multiple uses. For example, data on inventory can be used by
managers in production accounting, and purchase departments. Moreover, some data are
developed in large part as a kind of by product from the operation of procedures designed
to get something done. As a consequence of these multiple uses of data, there is a need to
develop a complete system for gathering, processing and flowing information.

Dearden and his associates have given a framework for designing MIS. The factors that
determine what an organisation does and how it performs would determine the major
characteristics of MIS. However, a framework for MIS should consist of an analysis of four
factors in the organisation: (i) the organisations opportunities, strategy, and structure;
(ii) the management and decision-making process; (iii) the available information sources;
and (vi) the problems and opportunities of information system administration.
The overall purpose of MIS is to provide profitability and related information to help
managers and staff understand business performance and plan its future direction.

IMPORTANCE OF MIS:

1. MIS is always management oriented and keeps in view every level of

management and gets the desired information.
2. Integrated - refers to how diff components(sub systems) are actually tied up
together. eg: diff departments of organization linked together.
3. Useful for planning - as every organization makes log-term and short-term plans
with the help of information like sales & production, capital investments, stocks etc
management can easily plan..
4. Effective MIS helps the management to know deviations of actual performance
from pre-set targets and control things.
5. its important for increasing efficiency.
6.MIS provides updated results of various departments to management.
7.MIS is highly computerized so it provides accurate results.
8.MIS adds to the intelligence, alertness, awareness of managers by providing them
information in the form of progress and review reports of an ongoing activity.
9.Helps managers in decision- making

When information systems are designed to provide information needed for effective decision
making by managers, they are called management information systems. MIS is a formal
system for providing management with accurate and timely information necessary for decision
making.

The system provides information on the past, present and project future and on relevant
events inside and outside the organization . It may be defined as a planned and integrated
system for gathering relevant data, converting it in to right information and supplying the same
to the concerned executives. The main purpose of MIS is to provide the right information to
the right people at the right time.
The Concept of management information systems originated in the 1960s and become the
byword of almost all attempts to relate computer technology and systems to data processing
in business . During the early 1960s , it became evident that the computer was being applied
to the solution of business problem in a piecemeal fashion, focusing almost entirely on the
computerization of clerical and record – keeping tasks. The concepts of management
information systems was developed to counteract such in efficient development and in
effective use of the computer. The MIS concepts is vital to efficient and effective computer
use in business of two major reasons:

· It serves as a systems framework for organizing business computer applications. Business

applications of computers should be viewed as interrelated and integrated computer – based
information systems and not as independent data processing job .

· In emphasizes the management orientation of electronics information processing in business

. The primary goal of computer based information systems should be the processing of data
generated by business operations.

A management information system is an integrated man – machine systems that provides

information to support the planning and control function of manager in an organization .

· The out put of an MIS is information that sub serves managerial functions. When a system
provides information to persons who are not managers, then it will not be considered as part
of an MIS . For .example , an organization often process a lot of data which it is required by
law to furnish to various government regulatory agencies. Such a system, while it may have
interfaces with an MIS, would not be a part of it, Instances of such systems are salary
disclosures and excise duty statements. By the same token to sophisticated computer – aided
design system for engineering purposes would also not be a part of an MIS.

· Generally, MIS deals with information that is systematically and routinely collected in
accordance with a well-defined set of rules. Thus, and MIS is a part of the formal information
network in an organization. Information that has major managerial planning significance is
sometimes collected at golf courses. Such information is not part of MIS, how ever, one- shot
market research data collected to gauge the potential of a new product does not come with in
the scope of an MIS by our definition because although such information may be very
systematically collected it is not collected on a regular basis.

· Normally, the information provided by an MIS helps the managers to make planning and
control decisions. Now, we will see, what is planning and control. Every organization in order
to function must perform, certain operations. For Example, a car manufacturer has to perform
certain manufacturing activities, a wholesaler has o provide water to its area of jurisdiction. All
these are operations that need to be done. Besides, these operations, an organization must
make plans for them. In other words it must decide on how many and what type of cars to
make next month or what commissions to offer retailers or what pumping stations to install in
the next five years.

Also an organization must control the operations in the light of the plans and targets
developed in the planning process. The car manufacturer must know if manufacturing
operations are in line with the targets and if not, he must make decisions to correct the
deviation or revise his plans. Similarly the wholesaler will want to know the impacts that his
commissions have had on sales and make decisions to correct adverse trends. The municipal
corporation will need to control the tendering process and contractors who will execute the
pumping station plans.

Generally, MIS is concerned with planning and control. Often there are elaborate systems for
information that assists operations. For example, the car manufacturer will have a system for
providing information to the workers on the shop floor about the job that needs to be done on
a particular batch of material. There may be route sheets, which accompany the rate
materials and components in their movement through various machines. This system per se
provides only information to support operation. It has no managerial decision-making
significance. It I not part of an MIS. If, however, the system does provided information on
productivity, machine utilization or rejection rates, then we would say that the system is part of
an MIS.

· Generally MIS has all the ingredients that are employed in providing information support to
manager to making planning and control decisions. Managers often use historical data on an
organization’s activities as well as current status data make planning and control decisions.
Such data comes from a data base which is contained in files maintained by the organization .
This data base is an essential component of an MIS. Manual procedures that are used to
collect and process information and computer hardware are obvious ingredients of an MIS .
These also form part of the MIS. In summary , when we say that “ an MIS is an integrated
man – machine systems that provided information to supports the planning and control
function of managers in an origination . It does the following function .

- sub serves managerial function

- collects stores , evaluates information systematically and routinely
- supports planning and control decisions
- Includes files , hardware , software , software and operations research models.

Effective management information systems are needed by all business organization because
of the increased complexity and rate of change of today’s business environment . For
Example, Marketing manager need information about sales performance and trends, financial
manger returns, production managers needs information analyzing resources requirement
and worker productivity and personnel manager require information concerning employee
compensation and professional development. Thus, effective management information
systems must be developed to provide modern managers with the specific marketing ,
financial, production and personnel information products they required to support their
decision making responsibilities .

An MIS provides the following advantages.

1. It Facilitates planning : MIS improves the quality of plants by providing relevant information
for sound decision – making . Due to increase in the size and complexity of organizations,
managers have lost personal contact with the scene of operations.

2. In Minimizes information overload : MIS change the larger amount of data in to summarized
form and there by avoids the confusion which may arise when managers are flooded with
detailed facts.

3. MIS Encourages Decentralization : Decentralization of authority is possibly when there is a

system for monitoring operations at lower levels. MIS is successfully used for measuring
performance and making necessary change in the organizational plans and procedures.

4. It brings Co ordination : MIS facilities integration of specialized activities by keeping each

department aware of the problem and requirements of other departments. It connects all
decision centers in the organization .

5. It makes control easier : MIS serves as a link between managerial planning and control. It
improves the ability of management to evaluate and improve performance . The used
computers has increased the data processing and storage capabilities and reduced the cost .

6. MIS assembles, process , stores , Retrieves , evaluates and Disseminates the information .

A management information system (MIS) is a subset of the overall internal controls

of a business covering the application of people, documents, technologies, and
procedures 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.[1]
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.[1]

It has been described as, "MIS 'lives' in the space that intersects technology and
business. MIS combines tech with business to get people the information they need to
do their jobs better/faster/smarter. Information is the lifeblood of all organizations -
now more than ever. MIS professionals work as systems analysts, project managers,
systems administrators, etc., communicating directly with staff and management
across the organization." [2]

MIS is popularly known as the Management Information System. MIS is

considered as one such method of generating information which is used by
management of organization for decision Making, control of activities,
operations etc.

During the period 1940 to 1960 computers were commercially used for census
and payroll work. This involved large amount of data and its processing. Since
then the commercial application exceeded the scientific applications for which
the computer were mainly intended for.

MIS is an information System which helps in providing the management of an

organization with information which is used by management for decision
making.

Objectives of MIS:

Managers play a key role in any organization. They are responsible for taking
decisions appropriate to the need of the market. Information systems have
become the main tool used by managers in decision making. Managers
perceive information as the driving force to achieve success in any business.
Hence there is a need for MIS as:

Support of its business process and operations

Support of decision making by its employees and managers

Support of its strategies for competitive advantage-Gaining a strategic

advantage

The major roles of the business applications of a Management Information

System may be represented in the pyramid form as shown below:
Characteristics of MIS:

MIS is mainly designed to take care of the needs of the managers in the
organization.

MIS aids in integrating the information generated by various departments of

the organization.

MIS helps in identifying a proper mechanism of storage of data.

MIS also helps in establishing mechanism to eliminate redundancies in data.

MIS as a system can be broken down into sub systems.

The role and significance of MIS in business and its classification is explained.
It is possible to understand the various phases of development in MIS based
on the type of system required in any organization.