MIS in details. What is Management Information System?

MIS‘ is a planned system of collecting, storing and disseminating data in the form of information needed to carry out the functions of management.

Management Information Systems (MIS), referred to as Information Management and Systems, is the discipline covering the application of people, technologies, and procedures collectively called information systems, to solving business problems.

Academically, the term is commonly used to refer to the group of information management methods tied to the automation or support of human decision making, e.g. Decision Support Systems, Expert Systems, and Executive Information Systems.

Management : Management is art of getting things done through and with the people in formally organized groups.
The basic functions performed by a manager in an organization are: Planning, controlling, staffing, organizing, and directing.

Information : Information is considered as valuable component of an organization. Information is data that is processed and is presented in a form which assists decision maker.

System : A system is defined as a set of elements which are joined together to achieve a common objective. The elements are interrelated and interdependent. Thus every system is said to be composed of subsystems.

A system has one or multiple inputs, these inputs are processed through a transformation process to convert into output.


The Management Information System (MIS) is a concept of the last decade or two. We can describe it in Multiple ways. It is also known as the Computer- based information System.

The MIS has more than one definition, some of which are give below.

  1. The MIS is a system which provides information support for decision making in the organization.
  2. We can define as MIS is 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.
  3. The MIS is a system based on the database of the organization evolved for the purpose of providing information to the people in the organization.
  4. You can also say, MIS is a Computer based Information System.

    Thought there are a number of definitions, all of them converge on one single point, i.e., the MIS is a system to support the decision making function in the organization. The difference lies in defining the elements of the MIS.

    However, in today’s world MIS a computerized, business processing system generating information for the people in the organization to meet the information needs decision making to achieve the corporate objective of the organization.

    In any organization, small or big, a major portion of the time goes in data collection, processing, documenting it to the people.


Hence, a major portion of the overheads goes into this kind of unproductive work in the organization. The difficulty in handling this multiple requirement of the people is due to a couple of reasons. The information is a processed product to fulfill an imprecise need of the people. It takes time to search the data and may require a difficult processing path.

It has a time value and unless processed on time and communicated, it has no value. The scope and the quantum of information is individual dependent and it is difficult to conceive the information as a well-defined product for the entire organization.

Since the people are instrumental in any business transaction, a human error is possible in conducting the same. Since a human error is difficult to control, the difficulty arises in ensuring a hundred per cent quality assurance of information in terms of completeness, accuracy, validity, timeliness and meeting the decision making needs.

In order to get a better grip on the activity of information processing, it is necessary to have a formal system which should take care of the following points:

  • Handling of a voluminous data.
  • Confirmation of the validity of data and transaction.
  • Complex processing of data and multidimensional analysis.
  • Quick search and retrieval. Mass storage.
  • Communication of the information system to the user on time.
  • Fulfilling the changing needs of the information.

    The management information system uses computers and communication technology to deal with these points of supreme importance.

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