Management information systems


What is MIS? MIS is an organized integration of hardware and software technologies, data, processes, and human elements. It is a software system that focuses on the management of information technology to provide efficient and effective strategic decision making.[1]

G.B. Davis defined Management Information System (MIS) is an integrated man/machine system for providing information to hold up the operations, management and decision making functions in an organization.

What Management Information system(MIS) is all about? Indeed, for a question like this, the perception could be that its all about computers or its all about Computer Software and Hardware. Some people may perceive that it's all about programming. However, it should be noted that all these perceptions could be partially right, but the perfect answer is something totally different. To understand about MIS one should realize the distinct 'Information Component' encircling every individual in this world! Information is considered to be the wealth when it can really make the difference between the profit and loss of an enterprise. Information is considered to be luck when it can make a difference between a win and a loss in a bet. Information is considered to be an opportunity, when it can provide the avenues for further prosperity. Thus information is capable of playing different roles in every individual's life. In the Scientific Management Process the effective planning, efficient organizing and strategic decision-making revolves around critical information and their availability at appropriate time.

Characteristics of MIS edit

MIS plays a very important role in every aspect of an organization. These characteristics are generic in nature. Following are the characteristics of MIS:

1. System Approach

2. Management Oriented

3. Need-Based, Exception Based

4. Future-Oriented, Integrated

5. Long Term Planning

6. Sub-System Concept

7. Central Database [2]


In the Scientific Management Process the widely accepted functional components are

(i)Marketing (ii)Human Resource Management (iii)Finance and (iv) Production or Operation.

All these functional components can be easily visualized in every business models.

Business Model with different Information Components


Marketing information :- 1. Product positioning details 2. competitive analysis and related information

Human Resource Information :- 1. Travel policies 2. Benefit profiles 3. Training programs

Training :- 1. Class registration details 2. courses available 3. training profiles

Finance Information :- 1. Quarterly report 2. annual report 3. stockholder details

Sales Information :- 1. Competitive Analysis 2. current sales details 3. customer information

Customer information :- 1. customer feedback 2. customer visits and details

Manufacturing information :- 1. total quality management 2. product schedule details

Management Information Systems can be subdivided into two classes: Financial Reporting Systems (FRS) and Operating Information Systems (OIS).

FRS encompass highly recognized financial reports such as Income Statements, Balance Sheets, Cash Flow, "Registers" such as Accounts Receivable Register, and other business-specific reports.

OIS are the crucial information of a non-financial nature that businesses require to manage and monitor vital information. The number and types of reports used vary widely. One idea of how to create OIS reports is the concept of the key variable, that is, the one or two pieces of management information that must be reviewed daily in order to verify that the business is working well. For instance, in the trucking industry, it might be said that the number of miles logged by all trucks the previous day is a key variable that indicates the direction of profits/success. This information might be the one piece of data the owner/general manager requires to be on his/her desk in the morning. If the number looks good, it's business-as-usual that day, but if not, he/she begins the work to get that number up.


Before discussing the types of information, it is quite appropriate to understand the difference between the data and information. Data is nothing but an abstract representation of a number, alphabets or a symbol. The data is required to be processed in different ways to obtain different types of informations.

Information is Classified into :

1.Strategic Information

2.Tactical Information

3.Operational Information

4.Statutory Information.

  1. What is MIS?
  2. Characteristics of MIS