Management Information System | Features, Need, Purpose, Objectives, Advantages & Disadvantages of MIS (2023)

Management Information System | Features, Need, Purpose, Objectives, Advantages & Disadvantages of MIS (1)

What is Management Information System ?

Management information system (MIS) can be described as an integrated computer system which consists of head and hardware and software to achieve strategic role of organisation its objective is to collect data to process and store it and produce information that is necessary for management to run the organisation operation efficiently generally and images used to be generated the following four types of information.

  1. Descriptive
  2. Diagnostic
  3. predictive
  4. Prescriptive

An Management Information System (MIS) can play a very crucial role to provide strategic support to management of an organisation to achieve a objective through efficient data processing and MIS can provide huge information so that it provide to be very fruitful investment only its this information changes the harmful behavior of the organisation

There are various good example of MIS which provided effective corporate governance in government as well as public and private sectors such as online banking system and online insurance system, management of education services, mobile Customer services and online competitive examination

The above example of MIS provide effective handling of in enormous amount of transaction managed through effective scheduling and achieve good performance of operations.

Meaning ofManagement Information System

The word'MIS' is not new, Only its automation is new earlier the MIS management information system was used as a resources of information by the managers. this information would allow them to plan and control different operation used in organisation .now, since the MIS is computerized ,it has increased its accuracy and speed which has allowed more alternatives which solving problem as well as decision making.

MIS provides the following types of information to the companies :

  1. Descriptive or 'what is ' information
  2. Diagnostic or 'what is wrong ' information
  3. Predictive or ' what if ' information
  4. Prescriptive or ' what should be done ' information

Management information system is also known as information system, the information and decision system , and the Computer Based information system.

Components ofManagement Information System

1. Management

Management can be defined as the procedure of planning and regulating the operation of an organisation . Framing of policies, its execution and stopping of employees are its key task. The management procedure can be analysed with the help of managers actions.

These are as follows :

  • Planning
  • Staffing
  • Organising
  • Directing
  • Coordination
  • Controlling

2. Information :

The word information is derived from latin word 'informer' which means 'give form to' information is data that has been processed and retrieved in such a way to that it is meaningful to person who received it.

(Video) Management Information System-MIS-Features & Functions of MIS-Objectives of MIS-Need/Importance

3. System :

A group of elements is called system these elements are called subsystem. All subsystem are grouped together to serve a common purpose.

Definition ofManagement Information System

According to G.B.Davis,

" a definition of an management information system, and the term is generally understood, is an integrated user machine system for providing information to support operation, management, and decision making functions in an organisation, the system utilises computer hardware and software, manual producer ,model for analysing, planning control, and decision making and a database".

According to the Kenneth Hamlett,

" information system refers to the practice of integrating computer system, hardware and software used to make an organisation that a g goal"

According to Institute of Management accounts ,

" mis is a system in which define data are collected, proceed and communicated to assist those responsible for the use of resources".

According to allen s . Lee,

" management information system is a planned system of collecting, processing, storing and disseminating data in the form of information needed to carry out the function of management".

Features ofManagement Information System

The main features of MIS are as follow :

1) Integrative system :

An MIS is logically integrated system comprising of subsystem, where activities of each are interrelated . this integration is possible by the auto rotation of data among the sub system.

2) Sub- system concept:

Alto system is considered a single entity, but a big system is divided into sub system. so that one such system can be implemented at a time , for better effectiveness.

3) Provides relevant information to management:

MIS should provide only relevant information to managers. At times , determining relevant information becomes very difficult, especially when and analyses of problems is done differently by different managers, according to the varying circumstances.thus, MIS provides relevant information and helps in reducing confusion and solving problems.


4) Flexible :

A MIS must be one that can be easily modified to changing circumstances.

It must be capable of expansion , accommodate growth or new type of processing activity and contraction as and when required.

5) Enhances productivity :

MIS oh whole improves the efficiency of an organisation. It helps in efficient document preparation, provides high level of services to individuals and external organisation, help in early detection of warning about internal and external problems ,and also in identifying opportunities. It assist in the overall management of organisation and improve the managers ability to deal with unexpected problems.

6) Co-ordinated system :

MIS is centrally synchronized so that all its components such as data processing, office automation , intelligence and decision support system, are developed and managed in a planned and coordinated manner.

6) Feed back System :

MIS provides feedback about its own efficiency and effectiveness. The system itself provides statistics about by 'whom and 'how much' the system has been used.

8) Management Oriented :

MIS is design from top to bottom corner but not necessarily start from the management needs of the overall business goals. this means that the system may be developed keeping in mind the needs of the middle /operation management as well as the top management to stop .this ensures a good MIS.

9) Management Directed :

It is imperative that management should dynamically direct and development of system because Management Information System is management oriented. Management should decided that information is required and hence help in designing MIS.

10) Common Database :

Since MIS is an integrative system, it has the opportunity to avoid duplication and redundancy in data collection, storage and sharing. One master file should be maintained , which can then use be different function areas from their respective report preparation and analysis.

Need ofManagement Information System

An organisation must have a very clear version about requirements such as type of information required, type of data available , type of stakeholders etc, at different levels of Management. An Organisation established and MIS for the following reasons:

(Video) What is Management Information System? It's Components, Objectives, Characteristics and Advantages

  • Efficiently storing and managing data of all business functional areas.
  • Fast and accurate delivery of information, as and when needed.
  • Processing of gathered data and developing information from it.
  • Information availability for production and inventory.
  • Providing information about current economic status of company.
  • Faster implementation of results available from reliable data sources.
  • Smooth flow of data within various levels of organisation.
  • Make availability of information required for planning organizing and monitoring business process.

Purpose and Objectives ofManagement Information System

1) Data Capturing :

MIS gathers information from various internal and external either manually or electronically with the use of computer terminals.

2) Processing of Data :

The collected data goes through a number of process like calculation , sorting, classification and summary for its conversion information.

3) Storage of information :

The processed or the unprocessed data stored in the MIS for future use by saving it as an organisation record. The data may also be used immediately.

4) Retrieval Of Information :

As per the request of different uses, retrieval of information is done by MIS from its stores.

5) Dissemination of information:

Information is the final product of MIS which is equally accessible by all users in the organisation. It may be periodic or online with the use of computer terminal.

Advantages ofManagement Information System

1)Facilitates planning :

Management Information System provides relevant information for efficient decision making for stop with the increasing size and complexity of organisation, managers now work remotely rather than from the operations location. MIS proves to be a big help in such scenarios.

2) Minimises Information Overload :

MIS help in compartmentalizing data into smaller relevant parts of decision-making. This reduces the confusion of large can organised data.

3) MIS Encourages Decentralization :

MIS enables decentralization of authority. This is possible as there and minority system at lower levels of measuring performance. This helps in making changes in organisational plans and procedures.

4) Brings Co-ordination :

MIS connect all decision making nodes in an organisation . it assist in assimilation of specialized activities whereby each department becomes aware of the problems and requirement of other departments . this ensures smooth functioning of an organisation.

5) Makes Control Easier :

MIS at as an important tool to relate managerial planning and control. MIS increases the data processing and storage capacity as well as reduces the cost with the help of computer. It enhance the managements capability to evaluate and improve performance.

Disadvantage ofManagement Information System

1)Highly sensitive, requires constant monitoring:

MIS content highly sensitive information about an organisation which can be used for fraudulent activities. Constant monitoring and filtering is required to avoid manipulation of data by fraudster causing harm to business.

2) Budgeting of MIS is Extremely Difficult :

MIS cannot be budgeted like activities of all other department. Hence, its expense is unpredictable. Even though it forms a very sensitive and important function of organisation but it is not possible to predict its expense.

(Video) Management Information System-Advantages and Disadvantages Part-2

3) Quality of Outputs Governed by Quality of Input :

The quality of the information generated through MIS is dependent on the quality of raw data used for processing.

4) Lack of Flexibility to Update Itself :

MIS Cannot update itself automatically like many other application. Updating has to be done manually by obtaining raw data and feeding it into the system for processing and updating pre existing data.

5) Effectiveness Decrease Due to Frequent Changes in Top Management :

Frequent changes in middle or top management levels reduces the effectiveness of information produced through MIS, as requirements of reports are the result of input provided by the top management level . Change in management result in chair changed information requirement because new team of management will require information on their own format.

6) Takes into Account only Qualitative Factors :

MIS takes into consideration only qualitative factors, ignoring the non qualitative factors such as morale, attitude, and motivation of workers. is the biggest limitation of MIS.


What are the features of management information system? ›

An ideal MIS possesses the following features:
  • Continuous flow: A well-designed MIS provides a continuous flow of information for decision making. ...
  • Decision-making: MIS is structured to provide information for decision-making. ...
  • Use of computer: ...
  • Complex process: ...
  • Economical: ...
  • Variety: ...
  • Future-oriented: ...
  • Flexible:

What is MIS purpose and objective of MIS? ›

MIS is a scientific way of collecting; processing, storing and communicating information relating to the various activities of an organisation to the various levels of management so that management may be facilitated in discharging its functions efficiently and run the organisation in an efficient manner for the ...

What are the 5 main types of management information systems MIS )? ›

There are many management information systems, including:
  • Process control. ...
  • Management reporting system. ...
  • Inventory control. ...
  • Sales and marketing systems. ...
  • Human resource systems. ...
  • Accounting and finance systems. ...
  • Decision support systems. ...
  • Expert systems.
25 Aug 2021

What are the advantages of MIS give 5 advantages? ›

What are the benefits of an MIS?
  • It allows real-time performance reports. ...
  • It generates analytical reports. ...
  • It compares projections and performances. ...
  • It aids the work allocation process. ...
  • It improves internal communication. ...
  • Transaction processing system. ...
  • Decision support system. ...
  • Executive information system.
4 Oct 2021

What are the 4 features of management? ›

Over the years, Fayol's functions were combined and reduced to the following four main functions of management: planning, organizing, leading, and controlling. No matter which industry you work in, the functions of management are consistent and applicable across all sectors.

What are 3 features of management? ›

Ans: The characteristics of management are: Goal-oriented. Pervasive. Multi-dimensional.

What are the objectives of management system? ›

Management objectives aim to create achievable goals and purposes for managers to implement and strive toward.
11 major objectives of management
  • Optimize resources. ...
  • Increase efficiency. ...
  • Maximize profits. ...
  • Promote personal development. ...
  • Maintain quality. ...
  • Uphold workplace morale. ...
  • Reduce risk.
14 Apr 2022

What is the purpose of information management? ›

The purpose of information management is to: design, develop, manage, and use information with insight and innovation. support decision making and create value for individuals, organizations, communities, and societies.

What are the 4 types of management system? ›

The Four Management Systems
  • Exploitative Authoritative.
  • Benevolent Authoritative.
  • Consultative.
  • Participative.

What are the 4 types of information? ›

There are four types of information:
  • Factual. Factual information is information that solely deals with facts. ...
  • Analytical. Analytical information is the interpretation of factual information. ...
  • Subjective. Subjective information is information from only one point of view. ...
  • Objective.
27 Sept 2022

What is its advantage and disadvantage? ›

As nouns, the difference between disadvantage and advantage is that disadvantage is a weakness or undesirable characteristic; a con while the advantage is any condition, circumstance, opportunity, or means, particularly favorable to success, or any desired end.

What are the advantages and disadvantages of information management systems? ›

It has its advantages and disadvantages depending on organizational deployment and usage.
  • Advantages. Management information systems have changed the dynamics of running businesses efficiently. ...
  • Better Planning and Control. ...
  • Aid Decision Making. ...
  • Disadvantages. ...
  • Constant Monitoring Issues.
13 May 2017

What are the 5 benefits of information management? ›

For Agency Leadership/Executives, the benefits of IM include:
  • Achieving strategic outcomes.
  • Identifying opportunities.
  • Growth and success.
  • Effective and informed planning (e.g. service delivery or disaster management)
  • Saving money/maximising value.
  • Managing risk.
15 Jun 2021

What are the 5 management functions? ›

At the most fundamental level, management is a discipline that consists of a set of five general functions: planning, organizing, staffing, leading and controlling.

Which is not a feature of management? ›

Management briefly refers to the process of dealing with or controlling people or things. Planning, staffing, controlling are covered under this definition. Hence, co-operating is not a function as such, of management.

What are the 3 types of management information system? ›

Three main categories of information systems serve different organizational levels: operational-level systems, management-level systems, and strategic-level systems.

What are the 3 types of management? ›

There are three broad categories of management styles: Autocratic, democratic and laissez-faire. Within these categories, there are specific subtypes of management styles, each with its own pros and cons.

What are the two features of management? ›

Features of Management
  • Management is Goal-Oriented: The success of any management activity is assessed by its achievement of the predetermined goals or objective. ...
  • Management integrates Human, Physical and Financial Resources: In an organization, human beings work with non-human resources like machines.

What is a system in MIS? ›

A management information system (MIS) is a computer system consisting of hardware and software that serves as the backbone of an organization's operations. An MIS gathers data from multiple online systems, analyzes the information, and reports data to aid in management decision-making.

What is MIS with example? ›

Stands for "Management Information System." An MIS is a system designed to manage information within a company or organization. This includes employees, departments, projects, clients, finances, and other types of data.

Is one disadvantage of using MIS by a company? ›

Disadvantage of Management Information System

Constant monitoring and filtering is required to avoid manipulation of data by fraudster causing harm to business. 2) Budgeting of MIS is Extremely Difficult : MIS cannot be budgeted like activities of all other department. Hence, its expense is unpredictable.

What are the 4 purposes of a performance management system? ›

Performance Management Purpose & its Objectives in HRM

It enables the employee to achieve the work performance of set standards. It helps to identify the skills and knowledge required to perform a job efficiently. It is a very important factor to motivate employees and boost employee empowerment.

What are the 4 objectives of project management? ›

In short, project management objectives are the successful development of project's phases including initiation, planning , execution, monitoring and closing.

What are the types of objectives in management? ›

There are three basic types of objectives.
  • Process objectives. These are the objectives that provide the groundwork or implementation necessary to achieve your other objectives. ...
  • Behavioral objectives. ...
  • Community-level outcome objectives.

What are the 4 stages of information management? ›

Each of these steps, gathering, storing, distributing, and deleting are critical when responsible for a client's information management. Taking these steps will help your client manage their information in a proper and secure way.

What are the 7 process of management? ›

The 7 Important Steps of Strategic Management Process
  • Identify the mission statement. ...
  • Think of the vision and the prospective future. ...
  • List your core values. ...
  • Consider long-term goals and reasonable objectives. ...
  • Develop a roadmap with detailed timelines. ...
  • Build a communication plan.
15 Dec 2020

How many types of MIS are there? ›

The four types of MIS are: Transaction Processing System (TPS), which processes the routine transactions associated with a business. Example transactions include payroll processing, order processing, such as for an e-commerce business, and invoicing.

What are the 5 source of information? ›

In this section you will learn about the following types of information sources:
  • Books.
  • Encyclopedias.
  • Magazines.
  • Databases.
  • Newspapers.
  • Library Catalog.
  • Internet.
27 Sept 2021

What are the 6 types of information? ›

6 types of information
  • Conceptual information. Conceptual information comes from ideas, theories, concepts, hypotheses and more. ...
  • Procedural information. ...
  • Policy information. ...
  • Stimulatory information. ...
  • Empirical information. ...
  • Directive information.

What are the 3 different types of our information sources? ›

Sources of information or evidence are often categorized as primary, secondary, or tertiary material. These classifications are based on the originality of the material and the proximity of the source or origin.

What are types of systems? ›

Peter Checkland (Checkland 1999, 111) divides systems into five classes: natural systems , designed physical systems, designed abstract systems, human activity systems and transcendental systems.

What are the 3 functions of information systems? ›

Input, processing, and output are the three activities in an information system that produce the information an organization needs.

What is the nature of MIS? ›

Nature of Management Information System

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.

What is the use of disadvantage? ›

Example Sentences

Noun She had the disadvantage of growing up in a poor community. They argued that the new regulations would place their company at a competitive disadvantage in the marketplace. There are advantages and disadvantages to the new system.

What is a disadvantage example? ›

The following are common examples of a disadvantage.
44 Examples of a Disadvantage.
BullyingCommunity Exclusion
Interpersonal ConflictLack of Cultural Capital
Lack of EducationLack of Family Support
19 more rows
14 Apr 2022

What are types of advantages? ›

Five types of competitive advantage
  • Five types of competitive advantage. ...
  • Cost-based advantage. ...
  • Advantage from a differentiated product or service. ...
  • First mover advantage. ...
  • Time-based advantage. ...
  • Technology-based advantage.

What are the 5 disadvantages of information technology? ›

17 Digital Technology Disadvantages
  • Data Security.
  • Crime and Terrorism.
  • Complexity.
  • Privacy Concerns.
  • Social Disconnect.
  • Work Overload.
  • Digital Media Manipulation.
  • Job Insecurity.
5 Jan 2022

What are the disadvantages of information sources? ›

Advantages/disadvantages of information sources
Reference lists & bibliographiesSubjective selection by another Unclear criteria
Supervisors, colleagues, mentorsBias Variability in willingness and motivation to help Priorities may be different May be large travelling distances Time pressure
13 more rows

What is the advantage of info? ›

Information advantage is the concept of leveraging information to make more informed, timely decisions and stay ahead of adversaries.

What is importance of information system? ›

Information system stores data in a sophisticated manner, making the process of finding the data much easier. Information system helps a business in its decision-making process. With an information system, delivering all the important information is easier to make better decisions.

How many types of systems are there in MIS? ›

Three main categories of information systems serve different organizational levels: operational-level systems, management-level systems, and strategic-level systems.

What is information system give 5 examples? ›

Hardware, software, computer system connections and information, information system users, and the system's housing are all part of an IS. Personal computers, smartphones, databases, and networks are just some examples of information systems.

What are the six elements of MIS? ›

The six basic functions of information systems are capture data, transmit data, store data, retrieve data, manipulate data and display information.

What is the process of MIS? ›

MIS is the use of information technology, people, and business processes to record, store and process data to produce information that decision makers can use to make day to day decisions. The full form of MIS is Management Information Systems.

What is MIS planning? ›

An MIS is a computerized database of financial, administrative and programmatic information organized and programmed in such a way that it produces regular reports on operations for every level of management in an organization.

What is MIS classification? ›

: an act or instance of wrongly assigning someone or something to a group or category : incorrect classification. Cracking down on the misclassification of workers so that those mislabeled as "independent contractors" can become unionizable employees. Harold Meyerson.

What are the sources of MIS? ›

The information of MIS comes from the boot internal and external source. MIS is normally found in manufacturing sector. A Management Information System can be defined as an information based system which is used for the decision -making purpose and for maintaining coordination in an organization.

What are parts of system in MIS? ›

An information system is essentially made up of five components hardware, software, database, network and people. These five components integrate to perform input, process, output, feedback and control. Hardware consists of input/output device, processor, operating system and media devices.

What are the 3 primary components of MIS? ›

information systems in that they are used to analyze other information systems applied in operational activities in the organization. MIS involve three primary resources: technology, information, and people.

What are types of information system? ›

Next are the office automation systems (OAS) and knowledge work systems (KWS), both working at the knowledge level. Next, the management level has the management information systems (MIS) and decision support systems (DSS), and we conclude with the executive support systems (ESS) at the strategic level.

Who Uses information systems? ›

Information systems are used to run interorganizational supply chains and electronic markets. For instance, corporations use information systems to process financial accounts, to manage their human resources, and to reach their potential customers with online promotions.

What are the 4 information system components? ›

As discussed before, the first four components of information systems – hardware, software, network communication, and data, are all technologies that must integrate well together.


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