What is Management Information system?

Management Information system (MIS) Definition

An Information system that consists of people, software and databases is known as Management Information System. MIS is used by organizations for making decisions, records, analysis, and control over management. It supports data collection, analysis of data and providing support to management.

Management Information System Overview

A management information system gathers data from internal and external sources using people, technology, databases, data models, and business processes. It examines them for decentralised management tasks, control, and coordination inside an organisation. It aids a business in improving productivity, raising revenue, evaluating performance, etc. By using methods, it also aids in staying one step ahead of its rivals.


A management information system (MIS) is a piece of software that aids in keeping track of and restating organisational work that is done at each stage of the management process. Ledgers and punch cards were once commonly employed to record commercial transactions. Organizations began utilising computers for record keeping and connecting to various levels of the management system as technology improved and IBM’s mainframe computers revolutionised the world. Servers, corporate computing, and cloud computing are being used by enterprises to create an effective organisational structural management system. Management Information system  is used by organisations in both the primary sector and the service sector, such as schools, hospitals, consulting firms, and so on. 

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Need for Management Information system (MIS)

Doing business has become difficult in this rapidly expanding and competitive world. The complexity of any company organization’s decision-making has become quite a burden.

It is impossible to make smart judgments for an organisation without knowledge, as decisions play a significant part in accomplishing objectives. As a result, it is critical to have a well-designed framework for organising information that is useful at all levels. Management Information system was created to help people use computers more effectively and efficiently. It is made up of individuals, databases, data processing, hardware, and software. All of this makes it important to gather and analyse information from internal and external sources in a way that is effective and efficient so that decisions, control, and planning can be made.

Assume a car company needs information regarding demand, cost, client preferences, and so on to decide on the design and market for cars. The manufacturer must also make judgments about job allocation, pay, retailers, and so on. MIS facilitates smooth operation, planning, and decision-making. Furthermore, it saves time.


Role of Management Information system (MIS)

Management comprises of individuals whose responsibilities include organisational tasks, communication, and planning. The process of gathering and arranging data is known as information. A set of frameworks that allow the transformation of disorganised data into organised data sets or information is referred to as a system. The work that these do individually is combined to form the foundation of MIS. These are the roles that MIS plays:

Making decisions: Management Information system plays a vital role in assisting managers in making decisions. It gives pertinent information on employee performance, marketing conditions, what needs to be done, and so on, and assists a business in making informed decisions.

Problem-solving: Management Information system assists in spotting difficulties in an organization’s activities and providing remedies in a timely manner. It simplifies and organises unstructured data, which would otherwise be a difficult task for people to do.

Coordination: Management Information system aids in the coordination of employees and employers through the interchange of information at various levels of management. Every department is aware of the goings-on.

Business Performance: Management Information system improves organisational performance by tying it to managerial planning. It boosts performance by adding value to the services it offers to clients. As technology has gotten better, it has become cheaper and easier to store and process data. 

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