A management information system brings together essential components of management and information. A management information system (MIS) is a computer-based information system that brings together essential components of management and information. It is a system that allows organizations to make effective decisions in order to realize short-term and long-term organizational goals. According to N. Kumar in the book “Management Information System,” MIS is a system of men, machines and procedures that unitedly provide information support for efficient decision making within an organization.
Simply put, a management information system collects data from various sources within a company and organizes it in the form of valuable information, which is then utilized by different operations/functional areas. Accurate Management information systems are accurate and provide up-to-date and correct information based on factual data. They capture only the most relevant data, process it, store it and provide access to it if and when required. Important organizational decisions are based on the information provided by a management information system, due to which their accuracy is essential.
All processed information derived from an accurate and correct management information system is typically free of flaws, consistent and complete. Integrated Organizations are involved in various functions and sub-functions, such as manufacturing, finance, human resources, marketing and other specialized areas. A management information system is an integrated collection of information systems, each designed to support a unique functional area. For instance, manufacturing is supported by an individual management information system, finance by another management information system, and so on.
All these individual modules, or units, are connected and form part of the larger, organizational management information system. Coordination and integration are central functions of a well organized information system, with each individual component designed to provide essential support to other components. Flexible A management information system is flexible and is designed to allow the integration of additional components. It automatically updates key processes and software components to include the latest trends, practices, technologies and information.
Management information systems are flexible in terms of data analysis and evaluation, and are programmed to study and analyze data from various different angles. They are also capable of supporting a wide range of knowledge and skills. Provides Organizational Support MIS provides support at various levels of management. It is designed to support classic managerial functions of planning, organizing, decision making, coordinating and controlling at various levels of an organization (strategic, tactical and operational).
A management information system defines goals, policies and the aims and objectives of the organization for the strategic level. It provides information on resources, acquisition tactics, new products, plant locations and budgets for tactical planning and basic management control. It defines how best to use existing resources and facilities to carry out all organizational activities within the stipulated budget. A management information system allows managers to effectively accomplish tasks by establishing streamlined interpersonal communication channels.