What is MIS?
MIS is an organized integration of hardware and software technologies, data, processes, and human
elements. It is a software system that focuses on the management of information technology to provide
efficient and effective strategic decision making.
What is MIS? MIS is the acronym for Management Information Systems. MIS is a set of procedures
which, when executed, provides information to support decision making.
Characteristics of MIS
What is MIS Characteristic? MIS plays a very important role in every aspect of an organization. These
characteristics are generic in nature.
Following are the characteristics of MIS:
1. System Approach
2. Management Oriented
3. Need-Based
4. Exception Based
5. Future Oriented
6. Integrated
7. Long Term Planning
8. Sub-System Concept
9. Central Database
System Approach
The information system follows a System’s approach. The system’s approach implies a holistic approach to
the study of system and its performance in the light for the objective for which it has been constituted.
Management Oriented
The top-down approach must be followed while designing the MIS. The top-down approach suggests that
the system development starts from the determination of management needs and overall business objectives.
The MIS development plan should be derived from the overall business plan. Management oriented
characteristic of MIS also implies that the management actively directs the system development efforts.
Need-Based
MIS design and development should be as per the information needs of managers at different levels,
strategic planning level, management control level and operational control level. In other words, MIS should
cater to the specific needs of managers in an organization’s hierarchy.
Exception Based
MIS should be developed on the exception-based reporting principle, which means an abnormal situation,
i.e. the maximum; minimum or expected values vary beyond tolerance limits. In such situations, there
should BE exception reporting to the decision-maker at the required level.
Future Oriented
Besides exception-based reporting, MIS should also look at the future. In other words, MIS should not
merely provide past or historical information; rather it should provide information, on the basis of
projections based on which actions may be initiated.
Integrated
Integration is a necessary characteristic of a management information system. Integration is significant
because of its ability to produce more meaningful information.
For example, in order to develop an effective production scheduling system, it is necessary to balance such
factors as setup costs, Workforce, Overtime rates, Production capacity, Inventory level, Capital requirements
and Customer services.
Long Term Planning
MIS is developed over relatively long periods. Such a system does not develop overnight. A heavy element
of planning is involved. The MIS designer must have the future objectives and needs of the company in
mind.
Sub-System Concept
The process of MIS development is quite complex and one is likely to lose insight frequently. Thus, the
system, though viewed as a single entity, must be broken down into digestible sub-systems which are more
meaningful at the planning stage.
Central Database
A central database is a mortar that holds the functional systems together. Each system requires access to the
master file of data covering inventory, personnel, vendors, customers, etc. It seems logical to gather data
once, validate it properly and place it on a central storage medium, which can be accessed by any other
subsystem.
Advantage & Disadvantages of MIS
Modern businesses have been leveraging management information systems (MIS) to manage, order,
organize and manipulate the gigabytes and masses of information generated for various purposes. MIS helps
businesses optimize business processes, address information needs of employees and various stakeholders
and take informed strategic decisions. However, budget allocation and monitoring issues can affect the
efficacy of MIS. It has its advantages and disadvantages depending on organizational deployment and usage.
ADVANTAGES
An MIS provides the following advantages:
1. It Facilitates planning: MIS improves the quality of plants by providing relevant information for sound
decision - making. Due to increase in the size and complexity of organizations, managers have lost personal
contact with the scene of operations.
2. In Minimizes information overload: MIS change the larger amount of data in to summarize form and there
by avoids the confusion which may arise when managers are flooded with detailed facts.
3. MIS Encourages Decentralization: Decentralization of authority is possibly when there is a system for
monitoring operations at lower levels. MIS is successfully used for measuring performance and making
necessary change in the organizational plans and procedures.
4. It brings Co-ordination: MIS facilities integration of specialized activities by keeping each department
aware of the problem and requirements of other departments. It connects all decision centers in the
organization.
5. It makes control easier: MIS serves as a link between managerial planning and control. It improves the
ability of management to evaluate and improve performance. The used computers has increased the data
processing and storage capabilities and reduced the cost.
6. MIS assembles, process, stores, Retrieves, evaluates and disseminates the information.
DISADVANTAGES:
1. Highly sensitive requires constant monitoring.
2. Buddgeting of MIS extremely difficult.
3. Quality of outputs governed by quality of inputs.
4. Lack of flexibility to update itself.
Challenges of MIS
What is MIS Challenges: There are three major challenges of MIS: high cost, training of employees and
maintenance cost. These are briefly discussed below:
1. High Cost
2. Training of Employee
3. Maintenance Cost
High Cost
Development of new computerized based information system is a problem for the organization due to the
cost factor and it creates problems because with the change of time there is need of up-to-date of the
information system.
Training of Employee
Employees should have the capacity of learning of the information system with the changing competitive
and business environment; otherwise it will be difficult for the organization to stay in the market.
Maintenance Cost
Sometimes a problem arises due to server crash and website crash. Sometimes it leads to the loss of
information. So, maintenance cost is needed to tackle the above problem.
