A management information system (MIS) provides information that organizations require to manage themselves efficiently and effectively. Management information systems are typically computer systems used for managing five primary components: 1.) Hardware, 2.) Software, 3.) Data (information for decision making), 4.) Procedures (design, development and documentation), and 5.) People (individuals, groups, or organizations). Management information systems are distinct from other information systems, in that they are used to analyze and facilitate strategic and operational activities. Academically, the term is commonly used to refer to the study of how individuals, groups, and organizations ...view middle of the document...
A retail store might use a computer-based information system to sell products over the Internet. In fact, many (if not most) businesses concentrate on the alignment of MIS with business goals to achieve competitive advantage over other businesses.
What are the Advantages of MIS
The following are some of the benefits that can be attained for different types of management information systems.
* Companies are able to highlight their strengths and weaknesses due to the presence of revenue reports, employees' performance record etc. The identification of these aspects can help the company improve their business processes and operations.
* Giving an overall picture of the company and acting as a communication and planning tool.
* The availability of the customer data and feedback can help the company to align their business processes according to the needs of the customers. The effective management of customer data can help the company to perform direct marketing and promotion activities.
Levels of Management
There are three levels of management and the diagram below illustrates how it looks like.
* Upper or Top or Strategic Management.
* Middle or Tactical Management
* Lower level Management
Lower or Operational level Management
* They make structured decisions (Operational decisions).
* Structured decision it’s a predictable decision that can be made following a well defined set of routine procedures.
* Most decisions at this level require easily defined information that relates to the current status and activities within the basic business functions.
* Information is gained from detailed reports which contain information about routine activities.
* Detailed tasks defined by middle management are carried out by people at operational level.
Middle or Tactical Management
* Acquire and arrange the resources (Computers, people etc) to meet the goals of an organization.
* Define the detailed tasks to be carried out at the operational level.
* Information needed involves review, summarization and analysis of data to help plan and control operations and implement policy that has been formulated by upper management.
* Information is usually given to middle managers as summarized reports.
* Deals with semi structured decisions. (Tactical decisions)
* Semi structured decisions that must be made without a base of clearly defined informational procedures. In most cases a semi structured decision is complex, requiring detailed analysis and extensive computations.
Upper or Top or Strategic Management
* Decides on the broad objectives of an organization.
* Make unstructured decisions. (Strategic decision).