Management Information Systems

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.

 

Management Information Systems is a system that converts data into information, communicated in an appropriate form to managers at levels of an organization. The information can contribute to effective decision making or planning to be carried out (Patterson, 2015). MIS basically involves the process of collecting, processing, storing, retrieving and communicating the relevant information for the purpose of efficient management operations and for business planning in any organizations. Thus, the success of effective decision-making, is consider as the heart of administrative process, is highly dependent partly on available information, and partly on the functions that are the components of the process (Nath & Badgujar, 2013).

         

Management Information Systems is define as type of information systems that transform data to information and summarized the information to Meaningful and useful forms as management reports to use it in managerial decision making. Management Information System is defined here as a type of system that consist of people, equipment and procedure to gather sort, analyze, evaluate and distribute timely, accurate, relevant and pertinent information for management decision making.

 

Weihrich and Koontz (2017) defined Management Information system as a functional system of gathering, comparing, analyzing, and dispersing internal and external information to the enterprise in a timely, effective, and efficient manner. Management information system can be defined as a support to management to provide the competitive advantage which must support the goals of the organization. Kenneth and Laudon (2001) Define Management information system as a planned system of collecting, processing, storing, disseminating data in the form of information needed to carry out the functions of management. It can also be a documented report of the activities, planned and executed. Management information system use formalized procedures to provide management at all levels in all functions with appropriate information based on the data from both internal and external sources to enable them to make timely and effective decision for planning, directing and controlling the activities for which they are responsible.

 

From the definition it means that management information system is made up of people who communicate (by report) information within and outside the organization.  Managers and officers communicate to their subordinates while subordinates also communicate by report and other device used in their communication process.

 

According to Philip (2017), management information system is the reception of facts and from a direct source which will be very useful to the organization as a whole.  The three key words are defined separately:

●    M (Management):  Refers to the state of mind that can best be described as a testimonial to the irrationality of man.

●    I (Information):  This is the meaningful input from which decision are made.

●    S (System):  Which entails a set of interacting components and sub-systems that work together to accomplish a defined goal.

Management information system is very useful to the organization and the major components of (MIS) include the following:

●    Data Processing Input (DPI): The term data processing is the processing of meaningful information by collecting all items of data together in performing operation on them to extract the requirement/required information from them, while

●    Electronic Data Processing (EDP):  Is the system through electronic means principally that of the use of computer.

Management Information System (MIS) has a primary purpose which is to provide the managers with the necessary information for decision making.  The critical point here is that not just any information will be enough but information should be particularly relevant for the managers area of decision and timely as well.

A good system requires the current raw data processed and filtered into information that management can accurately use.  Such systems are known as Decision Support System (DSS).  They are described as a wide variety of systems which have the direct objectives of supporting managerial decision making.

Management Information System is a (DSS) if and only it is designed with the primary objective of managerial decision support, thus a (DSS) is a specialties (MIS) designed to support a manager skills of all stage of decision making via identifying the problems choosing the relevant data, picking the approach to be used in making decision and evaluating the alternative course of action.

A management information system (MIS) is an information system used for decision-making, and for the coordination, control, analysis, and visualization of information in an organization.  The study of the management information systems involves people, processes and technology in an organizational context.  In a corporate setting, the ultimate goal of the use of a management information system is to increase the value and profits of the business. This is done by providing managers with timely and appropriate information allowing them to make effective decisions within a shorter period of time.  

 INTER-DISCIPLINARY NATURE OF MANAGEMENT INFORMATION SYSTEMS

Management Information System (MIS) is a system designed in order to study people, technology, organizations and the relationships among them. MIS provides selected decision-oriented information needed by management to plan and evaluate the activities of the organization. Needless to say, the Information System is one of the most promising fields today. In order to understand the scope of MIS and nature of management, we first need to understand what is MIS.

Management Information Systems helps firms in realizing maximum profits on their investments. The whole system is designed with the aim of enhancing profits, exercising better control and performance planning at all levels. Information systems are used at all the levels of a business organization in order to collect, process or store data. However, this gathered information needs to be carried out in an efficient manner which actually helps in business growth. So, MIS professionals create information systems for data management. They manage the various information systems in such a way that it is able to meet the needs of management, staff as well as clients. MIS professionals play a critical role in areas of information security, integration as well as exchange. 

Management Information Systems (MIS) can be simply referred to as a system or process that facilitates the smooth working of the organisation. The nature of MIS is truly multifold because it plays a bigger role in business decisions, from costs to employee management. Here are the major features that portray the nature of MIS:

• MIS is utilised by every level of a management.
• It clarifies and focuses on the strategic goals and objectives for the management.
• MIS provides an effective system to analyse costs and revenues and further reviews effectively and efficiently to bring a balanced in finances and costs.
• MIS is maintained either through manual systems or automated systems or a combination of both.
• It also plays a incremental role in identifying, locating, measuring, tackling and limiting risks.
• It lays down a framework of rules and regulations for the management to bring a clear and concise communication between employees.
• MIS provides an objective system of collecting, assessing and aggregating information for a business.

INTER-DISCIPLINARY NATURE OF MANAGEMENT INFORMATION SYSTEMS

After understanding what is MIS and the nature of management, it is clearly seen that management information system can be used by any discipline, ranging from accounting, human resource management, auditors, engineers, builders etc. Information Systems is growing at a fast pace to become one of the most promising career fields in today’s world. With everything happening digitally, the demand for MIS professionals is increasing more than ever. MIS involves performing a number of task simultaneously such as- 

• Processing data
• Initiating transactions
• Responding to inquiries
• Producing reports and its summaries
• Manage the data created within the structure of a particular business

MIS acts in an organization just like a nervous system in a body by providing with the relevant information for ease in the process of decision making.

The purpose of MIS is to work towards satisfying the information needs of everyone in the business. It means providing the relevant information to those who need it.

Thus, MIS has a lot of potential to become one of the most promising careers for individuals interested in the workings of a business.

The role of Management information system (MIS) is vital now-a-days in business environment across boards as there is no bounds or limited to which professional can used the it. This is solely because it has evolved over time to become an integral part of its business operations (Abdul and Khan, 2016). The use of management information system has increased for last few years not only by firms, but also by individuals and even governments. Because of the today’s global environment where competition is very high, it is the basic requirement of the organization to install management information system to compete the market and to earn more profitability, invest in innovation in their products, and to grow their businesses. All of these factors transformed the information system from data processing systems to decision support systems and became the foundation of the new business environment.

 

Development in information related equipment techniques and concepts collectively called information technology have been occurring at a breathtaking pace. New version of computers terminals, and other devices are announced almost daily in business new techniques for solving business problems. Many of these developments provide management information system to improve the effectiveness of information system and the quality of managerial decision making.

 

Other effects of an organizational nature are appearing, for instance information system functions are being organized to manage information system also, functional information system is being installed alongside accounting and other information systems e.g. personnel information systems.

 

Since each member of this combined group focuses upon information for managerial decision makers, the resulting combination is known as the management information system. The Management Information System is an important portion of a firm’s communication e.g. banks overall information system.

 

Corporate operations and decision-making are widely based on information that has been provided or generated by individual and specific Information Technology systems. Such systems are used to collect, harvest, organize, and generate an output that would back up fast and sound business decision. Firms adopt new management techniques and systems with the purpose of enhancing the decision-making processes, improve results and minimize output costs (Henry & Mayle, 2013). Consequently, this is a way to enhance company operation effectiveness. Various management techniques and management accounting practices improve financial performance if firms follow specific strategic priorities (Naranj-Gil, 2004).