Tuesday, 9 July 2013

Definition, characteristics & significance of MIS.

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:

Major Roles of the Business Applications of IS

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.


ROLE OF MANAGEMENT INFORMATION SYSTEM

The role of the MIS in an organization can be compared to the role of heart in the body. The information is the blood and MIS is the heart. In the body the heart plays the role of supplying pure blood to all the elements of the body including the brain. The heart work faster and supplies more blood when needed. It regulates and controls the incoming impure blood, processed it and sends it to the destination in the quantity needed. It fulfills the needs of blood supply to human body in normal course and also in crisis.
The MIS plays exactly the same role in the organization. The system ensures that an appropriate data is collected from the various sources, processed and send further to all the needy destinations. The system is expected to fulfill the information needs of an individual, a group of individuals, the management functionaries: the managers and top management.
Here are some of the important roles of the MIS:
1.  The MIS satisfies the diverse needs through variety of systems such as query system, analysis system, modeling system and decision support system.
2.   The MIS helps in strategic planning, management control, operational control and transaction processing. The MIS helps in the clerical personal in the transaction processing and answers the queries on the data pertaining to the transaction, the status of a particular record and reference on a variety of documents.
3 . The MIS helps the junior management personnel by providing the operational data for planning, scheduling and control , and helps them further in decision-making at the operation level to correct an out of control situation.
4.    The MIS helps the middle management in short term planning, target setting and controlling the business functions. It is supported by the use of the management tools of planning and control.
5.  The MIS helps the. top level management in goal setting, strategic planning and evolving the business plans and their implementation.
6    The MIS plays the role of information generation, communication, problem identification and helps in the process of decision-making. The MIS, therefore, plays a vital role in the management, administration and operation of an organization.

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