Role of Management Information System in

Business Organization
Krishna, Shubham, Dr. Shailza Dutt (Research project Guide)

Abstract It’s a set of integrated technology that collect, process,

classify, store and distribute information to support
The role of management Information System is described decision making and control. This system contains
and analyzed in light of its capability for decision making. information about crucial people, places and things within
Decision making process and its impact on top level the organization and institution or the environment
management in a business organization is explained with an surrounding around it. MIS provides information about the
emphasis on automated decision making. Management real economic value to the business. Investment in
Information System (MIS) is basically concerned with information system will be better investment like other
processing data into information which is then investment in building, machines, land and other assets. It
communicated to the various Departments in an is formally related with processing data into information.
organization for appropriate decision-making. MIS Provide Management information system can be further defined as
information which is needed to manage organization collection, analysis and processing of raw data into useful
efficiently and effectively. It involves three primary information and its allocation to the user in the required
resources: People, Technology and Information. format. Data collection involves the use of Information
Management Information System are distinct from other Technology (IT) comprising, computer and
information system because they are used to analyze telecommunication networks.
operation activities in the organization. Academically, the
term is commonly referred to the group of information So, it is system that provides information which is useful to
management methods tied to the automation or support of manage organization and institution efficiently and
human decision making. E.g. decision, expert system, and effectively. Technology information and public these are
executive information system. Organization still need the three primary resources in which management
different types of MIS serving various organizational information system occupied. It helps the management to
levels, function and business processes. These needs create solve the problem relating to the business decision making.
both opportunities and challenges. In this paper an attempt Management information systems are regarded as a
has been made to study the role of MIS in business division of the overall internal control procedures in a
organizational. business which cover the value of people documents
technologies and procedure used by management
Introduction accountants to solve business problems such as costing a
product service or a business wide strategy.
The concept of MIS is a systematic and scientific approach
to compile internal and external information into integrated It consists of information Wiki impact management to feel
and effective business information. MIS is not new to large the beat of the organization and take decision as a result. in
business organization. Only its computerization is new. reality of full MIS consists of all the system that the
organization used to produce the information that is Lead
Before use of computers, MIS techniques were in existence
Management decision and action management information
to supply managers with the information that would permit system at different from regular information system which
them to plan and control their business operation. The includes other information system applied in operational
computer had added more or more dimensions, such as activities in the organization.
speed accuracy and increased volumes of data that permit  most recently the early of the computer as a producer of
the consideration of mote useful alternatives in decision management information has been more recognized. the
making. term MIS was coined to describe the new era of Computer
Application. the term MIS was quickly adopted by the
business but although there has been considerable
controversy about what it actually mean. Originally the
term was restricted to system producing information for  Types of information management system
business manager. today that term is generally used to
describe the firm's overall computer system it regard   There are many types of information management system
business organization as a system in which the flow of in the market that provide a wide range of benefits for
business information is scientifically designed company:

 Concept of management information system

 MIS has been understood and described in a number of

ways. it is also popularly known as the information system
the information and decision system the Computer Based
information system.

The MIS has more than one definition some of which are
given below:
 The MIS is defined as a system which provides
information support for decision making in the
organization.
 The MIS is defined as a integrated system of man
and machine for providing the information to
support the operation the management and the
decision making function in the organization.
 The MIS is defined as a system based on the  Transaction processing system: it collect and
record the day-to-day living of an organization
database of the organization involved for the this system is mostly used at low level of
purpose of providing information to the people in management information system produced fixed
the organization. regularly schedule reports based on data extract
and summarized from the forms and align
 Information requirement for modern business transaction processing system helps to metal and
operational level manager to provide answer to
 Information system produce information to satisfy the need structured and semi structured decision problem.
of both the management and operation Sab system as well  Decision support system: it is mainly
as the need of party extended to the organization. This computer program application used by middle
information reflects the internal activities of the management to compile information from a wide
organization, competitive action, environmental and social range of sources to solve problems and making
logical interest and political and financial Trend. it must decisions decision are taken by the top level
represent what was happened, what is happening and management executive.
perhaps most important of all what will happen. This  Executive support system: it is reporting tool
information requirement exist with equal importance in that provides quick access to summarize report
private industry educational institution governmental coming from all levels of the organization and
organization and other organization departments such as accounting human resource
 with the growth of data and information processing is and operation this system provides critical
related directly to the growth of the organization which information in a wide range of internal and
comprise society in general it become important for the external sources in easiest way to use display to
organization to manage or process its information in better manager and executive.
visa myself to organization to access it critical information.
 Knowledge management system: it is
knowledge based information system to support
 Objective of MIS creation organization and disseminating business
knowledge to employee and managers throughout
 The following are the objective of MIS: the company.
 To provide an overview of the information  Strategy information system: it applies
requirement of the organization. Information Technology with firms product
 To analyze the role of Management and its service and business process to help the
dependency on information. organization to gain a strategic advantage
 To discuss the role of information in the decision over competition.
making process.  Functional business system: it focuses on
 To identify the need for information in the day- operational and managerial applications in
to-day operation of the organization. support of business function like accounting and
marketing etc.
 integration of people process and information technology. 
Role of MIS in improving decision making:- This fact creates unique opportunities for management
information system.  a business can attain following
advantages and the implementation of MIS.
 Economy of scale:  generally economy of scale
refers to the fact that the collective cost of several
combined operation may be less than the sum of
the cost of individual operation.  With the help of
MIS or operation of the business can be
combined and information can be supplied at
very fast rate from one department to another.
 Getting more information from same
amount of data:  the primary goal of MIS is to
Decision making is an essential part of any business. This turn data into information.  even though all the
is because a majority of operation in an organization turns data that manager needed for decision making
around decision made by the management. in order to make was in unstructured forms.  MIS organize the
decisions more effectively it is very important to have a data in such a manner that it becomes information
good management information system since the decision for the manager and they can easily use this
are based on the information available. The effectiveness of information for decision making in vital business
every business information is dependent on the timing and project.
content of the business information presented and  Sharing of data:  with the use of MIS data can
management actions. The need for management be shared among authorized user allowing user
information system is called when the manager have to access to more of the data several users might
make proper business decision the manager will have to have access to the same piece of data for the new
rely on his judgment but he must have information on the data can easily be added to the old one and
basis which arrive at business decision.  if an organization combined result can be found easily.
have a significant management information system it is
easy for an organization to take decision on the basis of
 Enforcement of standard:  why is help the
organization to enforce standard for its data it and
available information.  good MIS and sure good decision
short that standard for such thing as data names
making just in the same way bad MIS drive the making of
usage and format fare followed uniformly
bad decision MIS plays a crucial role in the decision
throughout the organization.
making through a systematic tool family information and
abdicate managerial policies and regulation.  the quality of  Control redundancy:  data was kept separate in
managerial decision making depend upon the qualitative file oriented system is now integrated into a
information and the manager should therefore develop her single database there is no longer need of
environment that encourage the growth and quality multiple copies of the same data. So repetition of
information management information system give manager the data and control redundancy Will be reduced
fast component to information.  it includes interaction with because there is no need to check data again and
other decision support system information examination again.
cross-referencing  of external information and possible data  Integrity:  one of the better opportunities for the
removal techniques this system provide information and organization for the implementation of
strategic that leak with practical decision.  finally management information system is that
management information system play a crucial role of it integrates the data of various places and
providing a wide range of alternative from which decision department as whole and also kept separate
maker are able to make their preferred decision.  it is record.  It becomes easy for the manager to
important for companies in the modern day generation access whole data of the organization.
where any minor fall in decision making can lead to very  Consistency:  MIS lead to the consistency and
infinite loss. accuracy of data. Data with the confusion and
  same alphabets can't be recorded wrongly
Opportunities of implementation of management because MIS detect these types of error while
information system: feeding the data into the system.
 Security of information:  security is the
 Modern business simply cannot compete without the prevention of access to the data by an authorized
power of management information system.  The dynamic user with the use of MIS in the business. 
nature of our current business environment decades that all Since, MIS has control over the operational
areas of business including accounting finance management data; it can define authorization procedure to
and human resource force the power of information system ensure that only legitimate user access the data.
to perform effectively. Therefore, the ability to successfully
design and implement management formation system has
become a cornerstone in most of the organization.  so MIS Challenges of using management information system
play highly strategic role in all business through the
 Organization still need different types of Information BY: Dr. Karishma Gulati Trehan, Kriti Dhingra.
Systems serving various organizational level, functions and
business processes and they increasingly need system Role of Management Information System in Human
providing enterprise-wide combination. This need create Resource.
both opportunities and challenges.  There are various types BY: Dr. Tripathi K.P.
of problem faced by company after application information
system:- Management Information System, A new framework
 Development of new computerized based BY: Srivastava Panka.
information system is a problem for the
organization due to the cost factor and it creates Management Information System, A Modern Perspective
problem because with the change of time there is BY: Wadhwa, Raj K.
need to up to date of the information system .
Employees should also be up-to-date about all Website: www.google.com
changes on company's website.
 Employees should have the capacity of learning
of the information system with the changing
competitive and business environment otherwise
it will be difficult for the organization to stay in
the market.
 Sometimes problem arise due to server crash and
website crash sometime it leads to the loss of
Information and further employee resistance to
adopt the information system is also a problem. 
when a new technology is introduced employee
resist it because they do not want to go with new
system they want to proceed in old pattern which
they are doing from many year and there master
in it.
 Cost of the implementation of the information
system in the organization and its integrity with
the various department.  Life of software system
is also a change for the organization that which
system would suit to the requirement of the
organization because every system has its
Limited scope and with the passage of time new
invention in technology are occurring they have
to implement the new changed technology which
would lead to the cost of information system.

 Conclusion

 It can be concluded that management information system

is an important part of the business which provide timely
and accurate information to the business manager and helps
them in taking appropriate decisions. With the change of
Technology Management new software are now used in
information system which leads to the fast and timely
supply of the information.  But information systems have to
face the challenges like implementation cost employees
resistance to change server crash problem and Learning of
new system problem and up-to-date information etc. 
Success of information system it is suggested that proper
planning is very important in any information system
because without planning nothing possible.  Project
harmony is necessary and uniformity in the organization is
also required.

 References
 
Information System Management