Management Information Systems (MIS):
Definition And Explanation:
A management Information system (MIS) is an information system that provides predefined types of information to management. Historically, the main output of management Information system (MIS) was hard copy summary and exception reports that were distributed by the management Information system (MIS) department to line department at periodic intervals or on demand. Today, reports are still the mainstay of the management Information system (MIS). With the infusion of display technologies into today's business workplace, however many of the information outputs traditionally available in hardcopy from with an management Information system (MIS) are now available in screen form. Also, the range of reports type is much greater. For example, the continuously scrolled displays at airports showing arrivals and departures of planes (or those at stock market showing changes in stock price) provide predefined and structured types of information. The form of this information; however could not traditionally be considered a report.
Management information systems (MIS) serve the lower and middle management level of the organization, providing managers with reports and, in some cases, with on-line access to the organization's current performance and historical records. Typically, they are oriented almost exclusively to internal, not environmental or external, events. Management information system (MIS) primarily serve the functions of planning, controlling, and decision making at the management level. Generally, they are dependent on underlying transaction processing systems for their data. Management Information system (MIS) summarize and report on the basic operations of the company. The basic transaction data from TPS are compressed and are usually presented in long reports that are produced on a regular schedule.
Management Information system (MIS) usually serve managers interested in weekly, monthly, and yearly results not day-to-day activities. Management Information system (MIS) generally address structured questions that are known well in advance. These systems are generally not flexible and have little analytical capability. Most management information system (MIS) use simple routines such as summaries and comparisons, as opposed to sophisticated mathematical models or statistical techniques.
Management Information system (MIS) is used for both management planning and management control functions. Because management Information system (MIS) reports are associated with managerial decision-making, their value is often hard to quantify.
Information system at middle and lower level of an organization that serve the functions of planning, controlling, and decision making by providing routine summary and exception reports.
Management Information system (MIS) generates the preplanned printed reports for decision-making purposes. Reports produced through an management Information system (MIS) are commonly by-product extensive and detailed databases assembled by Transaction Processing System.
Properties of Management Information System:
- Support structured and semi structured decisions, primarily at the middle and lower level management
- Management Information system (MIS) is intended principally to assist middle level management. It helps them with tactical decisions. It enables them to spot trends and get an overview of current business activities.
- Provide fixed types of reports in an established format
- Management Information system (MIS) are relatively inflexible
- The information requirements of users are normally known and stable
- Often hardcopy reports
- Usually require a formal run schedule
- Management Information system (MIS) generally aid in decision making using past and present data
- Management information system (MIS) rely on existing corporate data and data flows
- Usually consists of internal operational data rather then data about the external environment
- More concerned with data about the past than data relating to the future
- Often oriented to summary and exception reporting
Documents & Reports by Management Information System:
An MIS can produce either hardcopy report output or soft outputs. As mentioned earlier, hardcopy reports are the most common form of output produced by an MIS.
Reports produced by management Information system (MIS) usually fall into one of four categories: scheduled reports, exception reports, demand reports, summary
a. Scheduled Reports:
Scheduled reports also called periodic reports are those that are issued periodically i.e. hourly, daily, weekly, monthly, quarterly, or annually. Examples of such reports are daily production report and monthly performance report. These types of reports can be used either for planning or control purposes.
b. Exception Reports:
Exception reports are issued when something unusual takes place that require the attention of management. For instance, an expense overrun would likely trigger the generation of an exception report or an inventory report that lists only those items that number fewer than 10 in stock. Exception reports are used primarily for control purposes.
c. Demand Reports:
Demand reports are generated when someone with authority request information in response to an unscheduled demand. An executive asking for a financial report or director finance order a credit background report of an unknown customer who want to place a large order.
d. Summary Reports:
Summary reports show totals and trends. An example would be a report showing total sales by office, by product, by salesperson, of overall total sales.