MANAGEMENT INFORMATION SYSTEM

Definition of MIS: Management Information System or 'MIS' is a planned system

of collecting, storing, and disseminating data in the form of information needed to
carry out the functions of management.
To the managers, a Management Information System is an implementation of
the organizational systems and procedures. To a programmer, it is nothing but
file structures and file processing. However, it involves much more complexity.
The three components of MIS provide a more complete and focused definition,
where the System suggests integration and a holistic view, Information stands for
processed data, and Management is the ultimate user, the decision maker.
Management information systems can thus be analyzed as follows –

Management

Management covers the planning, control, and administration of the operations

of a concern. The top management handles planning; the middle management
concentrates on controlling; and the lower management is concerned with actual
administration.

Information

Information, in MIS, means the processed data that helps the management in
planning, controlling and operations. Data means all the facts arising out of the
operations of the concern. Data is processed i.e. recorded, summarized,
compared and finally presented to the management in the form of MIS report.

System

Data is processed into information with the help of a system. A system is made
up of inputs, processing, output and feedback or control.
Thus, MIS means a system for processing data in order to give proper
information to the management for performing its functions.

Objectives of MIS

1
The goals of an MIS are to implement the organizational structure and dynamics
of the enterprise to manage the organization in a better way and capture the
potential of the information system for competitive advantage.
Following are the basic objectives of an MIS −
 Capturing Data − Capturing contextual data, or operational information
that will contribute to decision-making from various internal and external
sources of organization.
 Processing Data − The captured data is processed into information needed
for planning, organizing, coordinating, directing and controlling
functionalities at strategic, tactical and operational level. Processing data
means −
o making calculations with the data
o sorting data
o classifying data and
o summarizing data
 Information Storage − Information or processed data need to be stored for
future use.
 Information Retrieval − The system should be able to retrieve this
information from the storage as and when required by various users.
 Information Propagation − Information or the finished product of the MIS
should be circulated to its users periodically using the organizational
network.

Characteristics of MIS

Following are the characteristics of an MIS −

 It should be based on long-term planning.
 It should provide a holistic view of the dynamics and the structure of the
organization.
 It should work as a complete and comprehensive system covering all
interconnecting sub-systems within the organization.
 It should be planned in a top-down way, as the decision makers or the
management should actively take part and provide clear direction at the
development stage of the MIS.
 It should be based on the need for strategic, operational, and tactical
information of managers of an organization.

2
  It should also take care of exceptional situations by reporting such
situations.
 It should be able to make forecasts and estimates and generate advanced
information, thus providing a competitive advantage. Decision-makers can
take action based on such predictions.
 It should create a linkage between all sub-systems within the organization
so that the decision-makers can make the right decision based on an
integrated view.
 It should allow easy flow of information through various sub-systems, thus
avoiding redundancy and duplicity of data. It should simplify the
operations with as much practicability as possible.
 Although the MIS is an integrated, complete system, it should be made in
such a flexible way that it could be easily split into smaller sub-systems as
and when required.
 A central database is the backbone of a well-built MIS.
 It should provide organized and relevant information for all levels of
management: strategic, operational, and tactical.
 It should aim at extreme flexibility in data storage and retrieval.
Objectives of MIS
MIS is an integrated man-machine system that collects, correlates and
selectively displays information in the proper time frame consistently, to meet
the specific needs of various levels of management, so that decisions can be
made and action can be taken to fulfill the objectives of the organization.
An effective MIS has the following objectives:
 Facilitates the decision-making process by furnishing information in the
proper time frame. This helps the decision-maker to select the best course
of action
 Provides requisite information at each level of management to carry out
their functions
 Helps in highlighting the critical factors to the closely monitored for the
successful functioning of the organization
 Supports decision-making in both structured and unstructured problem
environments

3
  Provides a system of people, computers, procedures, interactive query
facilities, and documents for collecting, storing, retrieving, and transmitting
information to the users
The components of an information system:
• Computer hardware- This is the physical technology that works with
information
• Computer software - The hardware needs to know what to do, and that is
the role of software
• Telecommunications -This component connects the hardware to form a
network
• Databases and data warehouses
• Human resources and procedures
Types of Management Information Systems (MIS):
• process control systems
• human resource management systems
• sales and marketing systems
• inventory control systems
• office automation systems
• enterprise resource planning systems
• accounting and finance systems
• management reporting systems
The features of MIS
An ideal MIS possesses the following features:
• Continuous flow: A well-designed MIS provides a continuous flow of
information for decision making

4
 • Decision-making: MIS is structured to provide information for decision-
making
• Use of computer
• Complex process
• Economical
• Variety
• Future-oriented
• Flexible
Components of Computer Hardware:
• Hard disk - The hard disk is another type of computer hardware that is used
to store the data in it
• Monitor
• CPU
• Mouse
• Keyboard
• Printer
Computer Software for Information Systems
• To build IT system, hardware and software both are needed
• The software developed in the organization can monitor sales volume,
generate reports, monitor employee attendance, process marketing
information, track inventory, etc.
• Systems that are used in the organization are programs-driven
• A program is a set of stepwise instructions given to a computer to
accomplish tasks
• The programmers write software using special languages which are called
programming languages

5
• The process of writing programs is referred to as programming
• Hardware accounts for less than 15% of system costs
• Customized software accounts for 85%
 PROGRAMMING LANGAUGES
• A programming language is a special type of computer language, with its
syntax and grammar, that is used to write software
• There are two types of programming languages: (1) PROCEDURAL (2) NON-
PROCEDURAL
• Procedural language explains stepwise sequential explanation to
accomplish a given task
• A non-procedural language focuses on the result/accomplishment of a task
and not on the process
• Earlier programming languages used to be completely procedural
• Computer languages are powerful and user-friendly now: For exp., Focus
(FOCUS is a fourth-generation programming language (4GL) computer
programming language and development environment that is used to build
database queries)
 First Generation Languages - Machine Language
• The early computers were programmed in machine language or first-
generation language – a series of zeros and ones that the CPU can interpret
and execute
• Machine language is important because it is the only language that the
computer can understand.
• Since machine language was difficult to use, computer scientists developed
programming languages that were closer to human communication
• The program is written in the programmer’s language and is translated into
machine language before it is run. The program written by the programmer
is known as the SOURCE PROGRAM

6
• The machine language is called the object program
• The system software that translates the source program into the object
program is called the translator
 SECOND GENERATION LANGUAGES – the Assemblers. The first translators
were called assemblers. They permitted the programmer to code programs
in assembly language, or Second-generation language. An assembly
language uses mnemonic names (a system such as a pattern of letters,
ideas, or associations that assists in remembering something. For exp., DIV
for divide)
 There is generally a one-to-one relationship between source instructions
written by the programmer and the object instructions that are generated
which means that if the object program requires 500 instructions, the
programmer has to code almost the same number
 Although assembly language was a big improvement over machine
language from the programmer’s point of view, it had several drawbacks.
The assembly language programs would be lengthy and difficult to read.
 Moreover, the assembly languages were different for every model of CPU.
So if the computer had to be replaced, all the programs had to be
rewritten. This requirement led to the development of a new generation of
translators.
 Third Generation Languages (3 GLs) – the compilers and the Interpreter
 Unlike assembly languages, a third-generation language can produce
multiple object program instructions from a single source program
instruction which means that programmers have to produce fewer lines of
code. The syntax of third generation languages is more like the user’s
language. Popular third generation languages are COBOL, FORTRAN, PL/I,
and BASIC.
 COBOL, FORTRAN and PL/I are compiler languages. A compiler produces a
complete object program in one process; then the object program is
executed. An interpreter, on the other hand, translates a source language
instruction and executes it before going on to the next instruction. There is

7
 no complete object program as such. BASIC programs are most often
translated by an interpreter.
 Fourth Generation Languages (4GLs) – the Natural Languages
 4GLs were developed on the late 1970s to overcome the demands of
procedural programming languages. 4GLs are non-procedural languages. It
allows a programmer/user to instruct the computer on what to do rather
than how to do it.
 The term natural language is also used because the syntax of the 4GL can
be very similar to our everyday speech.
 Some popular third and fourth generation programming languages are
 BASIC
 FORTRAN
 COBOL
 PASCAL
 C LANGUAGE
Client-server computing
• A client usually does not share any of its resources, but it requests content
or service from a server. Clients, therefore, initiate communication sessions
with servers, which await incoming requests
• A client-server network is a medium through which clients access
resources and services from a central computer, via either a local area
network (LAN) or a wide-area network (WAN), such as the Internet.
Examples of computer applications that use the client–server model are
email, network printing and the world wide web.
Benefits of a client-server network:
• Following are the benefits of a client-server network:
• Less damage since one client computer does not impact other computers in
the network.

8
 • Easy recovery of files is possible since backups are centrally controlled by
network administrators
• More secure since files and everything else are centralized on such
networks
• Larger networks can be created as new clients and servers can be added to
the network This makes this network more scalable
• Easy sharing of resources is possible due to the control from the server
• Expandable storage capacity allows more data to be available on the server.
Even hard drives can be added to the server easily
• The server is highly accessible since it can be accessed remotely from
multiple platforms
Disadvantages of the Client-Server Network
• An expert professional is always required to maintain the server which
makes it complex
• Due to the lack of resources, there is a possibility of system overload which
in turn leads to network traffic congestion
• It is more expensive since servers are costly to buy, set up, and maintain
• Any damage to the server will hamper the entire network since everything
is directly dependent on the server
Artificial Intelligence
AI refers to machines’ ability to execute tasks that normally need human
intelligence. Simply put, artificial intelligence mimics how a human would perform
a task using cognitive abilities like reasoning, learning, problem-solving, and
decision-making
• Specific applications of AI include expert systems, natural language
processing, speech recognition, and machine vision
• Siri, Alexa, Chat GPT, and other voice assistants are examples of
conversational AI. These bots(autonomous programs) are not simply

9
 programmed with answers to questions but instead are a result of machine
learning and natural language processing.
• Application of AI: like electricity or computers, is a general-purpose
technology that has a multitude of applications. It has been used in fields of
language translation, image recognition, credit scoring, e-commerce, and
other domains.
• AI is used in various industries today, such as
• Healthcare: used to develop new drugs and treatments, diagnose diseases,
and provide personalized care
• Finance: used to detect fraud, manage risk, and provide investment advice
Advantages of Artificial Intelligence
• Increased Efficiency: AI can automate repetitive tasks, and improve
efficiency and productivity in various industries.
• Data Analysis and Insights: AI algorithms can analyze large data quickly,
providing valuable insights for decision-making.
• Main advantages are Efficiency, cost-saving, improved decision-making,
personalization, safety, enhanced customer service and increased access to
education and healthcare
Disadvantages of Artificial Intelligence
• Job Displacement. This is probably the most worrying downside of AI.
• Algorithmic (a set of rules that must be followed when solving a particular
problem) Bias
• Lack of Creativity and Empathy
• Reliance on Data
• Security Risks
• Existential threats (related to existence)
• Make Human Lazy

10
Office Information System
• An information system (IS) is an interconnected set of components used to
collect, store, process, and transmit data and digital information. At its
core, it is a collection of hardware, software, data, people, and processes
that work together to transform raw data into useful information
• It improves workflow and helps communications among employees
• Today, it is widely accepted that managing information resource is very
often equally important to the organization or IT department
• Information systems are useful for storing operational data, communication
records, documents, and revision histories
• Manual data storage will cost the company lots of time, especially when it
comes to searching for specific data.
• Information is important because it helps in:
• 1) decision-making
• 2) problem solving
• 3) understanding
• 4) improving processes
• 5) understanding customers
• Tools such as laptops, databases, networks, and smartphones are examples
of information systems.
Function of office information system/ OIS
• Combining hardware, software, human power and processes, an
information system refers to a network used to collect, store, process,
analyze, and distribute data.
• Office information systems leverage (using sth that we already have to
create sth new or better) personal computing - they do not replace it
• Helps organization work in the office by providing a smooth flow of
documents and messages

11
• assists group work through support for meetings of various kinds
• enables cooperative work on a project

12