What is MIS? Definition, Objectives and Components.

What is MIS? Definition, Objectives and Components.


MIS Can be defined as a system that:

  1. Provides information to support managerial functions like planning , organizing, staffing, directing and controlling.
  2. It collects information in a systematic and a routine manner which is in accordance with a well defined set of rules.
  3. It includes files, hardware, software and operations research models of processing, storing, retrieving and transmitting information to the users.

MIS is an organized approach to the study of information needs of a management at every level in making operational, tactical, and strategic decisions. Its objectives is to design and implement man-machine procedures, process, and routines that provides suitably detailed reports in an accurate, consistent, and timely manner. Modern, computerized systems continuously gather relevant data, both from inside and outside the organization. This data is then processed, integrated, and stored in a centralized database where it is constantly updated and made available to all who have authority to access it, in a form that suits their purpose.

We can also say that, Management information system is a set of interrelated components which: Collect, retrieve, process, store and distribute information to support decision making of managers in an organization.
What is MIS? Definition, Objectives and Components.
What is MIS? Definition, Objectives and Components.

Objectives of Management Information System (MIS)

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Following are the main objectives of a management Information System (MIS):-
  • Capturing Data – MIS captures data from various internal and external sources of an organization. Data capturing may be manual or through computer terminals. End users, typically record data about transactions on some physical medium such as paper form or enter it directly into a computer system.
  • Processing 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 summarizing.
  • Information Storage – MIS stores processed or unprocessed data for future use. If any information is not immediately required, it is saved as an organizational record. In this activity, data and information are retained in an organized manner for later use. Stored data is commonly organized into fields, records, files and databases.
  • Information Retrieval − MIS retrieves information from its stores as and when required by various users. As per the requirements of the management users, the retrieved information is either disseminated as such or it is processed again to meet the exact demands.
  • Dissemination Of 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 on-line through computer terminals.

Components of MIS:

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A management information system is made up of five major components namely people, business processes, data, hardware, and software. All of these components must work together to achieve business objects.

People – these are the users who use the information system to record the day to day business transactions. The users are usually qualified professionals such as accountants, human resource managers, etc. The ICT department usually has the support staff who ensure that the system is running properly.

Business Procedures – these are agreed upon best practices that guide the users and all other components on how to work efficiently. Business procedures are developed by the people i.e. users, consultants, etc.
Data – the recorded day to day business transactions. For a bank, data is collected from activities such as deposits, withdrawals, etc.
Hardware – hardware is made up of the computers, printers, networking devices, etc. The hardware provides the computing power for processing data. It also provides networking and printing capabilities. The hardware speeds up the processing of data into information.

Software – these are programs that run on the hardware. The software is broken down into two major categories namely system software and applications software. System software refers to the operating system i.e. Windows, Mac OS, and Ubuntu, etc. Applications software refers to specialized software for accomplishing business tasks such as a Payroll program, banking system, point of sale system, etc.

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