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Management Information System (MIS) | Functions of MIS

Management Information System (MIS) | Functions of MIS

What is MIS

MIS is an acronym for a Management Information System. Management Information System is generally defined as an integrated user-machine system for providing information to support operations, management and decision-making functions in an organization. The system utilizes computer hardware and software, manual procedure, models for analysis. Information is viewed as a resource much like land, labor and capital. It must be obtained processed, stored, manipulated and analyzed, distributed etc. An organization with a well-defined information system will generally have a competitive advantage over organization with poor MIS and no MIS. MIS a system that provides information needed to manage organizations efficiently and successfully. Information is communicated to an organization’s departments where it is used to make the appropriate decisions. The distinction between a management information system and a regular information system is that the former is used to analyze other information systems applied in operational activities in the organization.

The MIS is defined as a system which provides information support for decision-making in the organization.

  • 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.
  • 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 the organization.
  • The MIS is defined as a computer-based information system.
  • History of MIS

Creation of the Management Information Systems Field (1970)

With the advent of computer programs for business applications, it became apparent that the communication gap that existed between computer programmers and business people had to be solved. Business people wanted programmers to come up with the ultimate solution for their problems and programmers had a hard time explaining to management what was possible and what was not, technically, possible.

The solution was to design a course of study which merged information technology, business and computer programming. This field was called, Management Information Systems (MIS). The idea was to create a workforce who could bridge the communication and technical gaps between management and computer programmers.

The first courses were taught in as business courses in select colleges in America. The courses started off as electives in the area of business. As the 1970s closed, colleges and business schools would create full four-year programs designed for studies in the field of information systems.

Management Information System Networks

From 1980 to the present, there has been an explosion of technology in the field of information systems. The integration of the personal computer (PC) into the workplace and homes has made information readily available to all people. The creation of wide area networks, the Internet and distributed processing have changed the way people obtain information.

The concept of Management Information Systems has expanded to include data mining (databases of archived information), data retrieval sciences (critical business data stored on microchips) and technology used in everyday devices such as cell phones, wireless devices that require the passage of important data as well as integrated software for common functions.

The concept of Management Information Systems has expanded to include data mining (databases of archived information), data retrieval sciences (critical business data stored on microchips) and technology used in everyday devices such as cell phones, wireless devices that require the passage of important data as well as integrated software for common functions.

The world is living in the Age of Information. Computers have assisted countries into transforming themselves from the industrial revolution into the information age by merging concepts through various management information system applications.

Functions of MIS

  • Data Processing
  • It includes the collection, transmission, storage, processing and output of data. It simplifies the statistics and reduces to the lowest cost by supplying an unified format.

    • Function of Prediction
    • It predicts the future situation by applying modern mathematics, statistics or simulation.

      • Function ofPlan
      • It arranges reasonably the plans of each functional department in accordance with the restrictions afforded by enterprises and provides the appropriate planning reports according to different management.

        • Function of control
        • It monitors and inspects the operation of plans and comprises with the differences between operation and plan in accordance with the data afforded by every functional department, and be assistant to managers to control timely each method by analyzing the reasons why the differences comes into being.

          • Function of assistance
          • It derives instantly the best answers of related problems by applying to several of mathematics’ mode and analyzing a plentiful data stored in computers in the hope of using rationally human resource, financial resource, material resource and information resource for relative abundant economic benefits.

          Importance of MIS

          • MIS is always management oriented and keeps in view every level of management and gets the desired information. 
          • Integrated – refers to how diff components (sub systems) are actually tied up together. e.g.: different departments of organization linked together. 
          • 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. 
          • Effective MIS helps the management to know deviations of actual performance from pre-set targets and control things. 
          • MIS is important for increasing efficiency. 
          • MIS provides updated results of various departments to management. 
          • MIS is highly computerized so it provides accurate results. 
          • 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. 
          • Helps managers in decision- making.

          MIS Process

          • Collection
          • Organization
          • Distribution
          • Storage of wide information
          • Managerial control and analysis of data

          Types of MIS

          Management information systems can be used as a support to managers to provide a competitive advantage. The system must support the goals of the organization. Most organizations are structured along functional lines, and the typical systems are identified as follows:

        • Accounting management information systems
        • All accounting reports are shared by all levels of accounting managers.

        • Financial management information systems
        • The financial management information system provides financial information to all financial managers within an organization including the chief financial officer. The chief financial officer analyzes historical and current financial activity, projects future financial needs, and monitors and controls the use of funds over time using the information developed by the MIS department.

        • Manufacturing management information systems
        • More than any functional area, operations have been impacted by great advances in technology. As a result, manufacturing operations have changed. For instance, inventories are provided just in time so that great amounts of money are not spent for warehousing huge inventories. In some instances, raw materials are even processed on railroad cars waiting to be sent directly to the factory. Thus there is no need for warehousing.

        • Marketing management information systems
        • A marketing management information system supports managerial activity in the area of product development, distribution, pricing decisions, promotional effectiveness, and sales forecasting. More than any other functional area, marketing systems rely on external sources of data. These sources include competition and customers, for example.

        • Human resources management information systems 
        • Human resources management information systems are concerned with activities related to workers, managers, and other individuals employed by the organization. Because the personnel function relates to all other areas in business, the human resources management information system plays a valuable role in ensuring organizational success. Activities performed by the human resources management information systems include, work-force analysis and planning, hiring, training, and job assignments.

          Features of HMIS

          HMIS would enable to improve the response time to the demands of patient care because it automates the process of collecting and retrieving patient information.

          • HMS enables hospitals and doctors to better serve their patients.
          • Parameter Base.
          • User friendly, Simple and easy to use.
          • Easy to implement and install.
          • Improved quality of patient care.
          • Increased nursing productivity.
          • Reducing the time spent by staff filling out forms, freeing resources for more critical tasks.
          • Better quality of care, procedures and service to Patients.
          • Control over the costs incurred by diagnosis-related groups.
          • It brings all departments of the organization into a single entity.
          • Data Security: Safeguards data integrity, security and accessibility.
          • Various MIS reports, which help the management in making policy decisions.
          • Maintains records necessary for statutory requirements.
          • Facility to consult specialists without geographical constraints.
          • Dashboard.
          • Improved decision support for the management.

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