UNIT - 1 INTRODUCTION TO MIS

Topics to be covered
What is MIS? MIS A concept Importance of MIS Need and Scope of MIS Characteristic Features of MIS MIS Functions

What is MIS?
MIS is basically an integrated system which transforms the data

(inputs) into reports (outputs) for facilitating decision making

through processing and using various components of the information system viz. Hardware, Software, Database, Procedures and Personnel.

MIS A Concept
Management Information System is an acronym of three words

Management

Information and
System

Management
Managerial functions:

Planning
Organizing Staffing Directing and Controlling

Management
Managerial Hierarchy
Strategic Management

Management Control

Operational Control

Management
Interaction of the Three Levels of Management
Top Management Policies Plans Budgets Objectives

Revenue

Costs

Profits

Middle Management

Goods

Services

Performance

Operational Management

Information
Information is the second component in the term of MIS. It is considered as

the valuable resource required by the management in order to run a

business organization.

Data

Processing

Information

Information Needs of Different Management Levels

Unstructured Non Programmed Futuristic Approximate External

Top Management
Structured Programmed Historical Exact Internal

Operating Management

System
System may be defined as a set of elements which are joined together to achieve

a common objective. The elements are inter related and inter dependent. The
major elements of a system are Input, Process and Output.

Input

Process

Output

Importance of MIS
All managerial functions are performed through Decision Making. Survival of the fittest. Thinking globally acting locally. MIS is the nerve centre of an organization.

Need and Scope of MIS

Managing the organization as a system. Integrating various sub systems. Obtaining organization wide efficiency.

Role clarity of people.

Automation of Organizational Processes. Motivation for people. Cost Minimization.

Characteristics of MIS
System Approach

Management Oriented
Need Based Exception Based Future Oriented Integrated Common Data Flows Long Term Planning Central database

MIS Functions
MIS is a set up by an organization with the prime objective to obtain management information to be used by its managers in decision making.

MIS Functions
Data Capturing Processing of Data Storage of Information Retrieval of Information Dissemination of Information

Functions of MIS
MIS is a setup by an organization with the prime objective
to obtain management information to be used by its managers in decision making. Thus MIS perform the

following functions in order to meet its objectives.

Functions of MIS
Data capturing
MIS captures data from various internal and external
sources of an organization. Data capturing may be manual or through computer terminals. End users records the details of transactions either manually or directly feed into the computer system.

Functions of MIS
Processing of data
The captured data is processed to convert it into the
required management information. Processing of data is done by such activities as calculating, comparing, sorting, classifying and summarising. These activities organize, analyze and manipulate data using various statistical,

mathematical, operations research and/or other business

models.

Functions of MIS
Storage of information
MIS stores processed or unprocessed data for future use. If
any information is not immediately required, it is saved as an organizational record. Stored data is commonly organized into fields, records, files and databases.

Functions of MIS
Retrieval of information
MIS retrieves information from its source as and when
required by various users. As per requirements of management users, the retrieved information is either distributed or processed again to meet the exact

management information demands.

Functions of MIS
Dissemination of Management information
Management information, which is a finished product of
MIS, is disseminated to the users in the organization. It could be periodic, through reports or online through computer terminals.