Concept of Management Information System (MIS)

26/07/2023 4 By indiafreenotes

A management information system (MIS) is an information system used for decision-making, and for the coordination, control, analysis, and visualization of information in an organization.

The study of the management information systems testing people, processes and technology in an organizational context.

Management Information Systems (MIS) refer to the integration of information technology, individuals, and business procedures to capture, store, and process data with the objective of generating valuable insights for day-to-day decision-making. By extracting data from diverse sources, MIS facilitates the production of information that empowers decision-makers and fuels business growth.

Need for Management Information Systems (MIS)

Management Information Systems (MIS) play a vital role in enabling decision-makers to access essential information for making effective choices. These systems also facilitate seamless communication within and outside the organization. Internally, employees can readily access the necessary information for day-to-day operations, while externally, communication with customers and suppliers is streamlined through features like Short Message Service (SMS) and Email integrated within the MIS system.

Additionally, MIS systems serve as comprehensive record-keeping tools, meticulously capturing all business transactions of an organization. They act as a reliable reference point, providing a historical record and valuable insights into past activities and financial dealings.

Components of Management Information Systems (MIS):

  1. People: The users who interact with the information system, including employees and managers.
  2. Data: The recorded information that the system processes and stores, such as transaction data and business records.
  3. Business Procedures: The set of established procedures and guidelines for data recording, storage, and analysis within the system.
  4. Hardware: The physical components that make up the system, including servers, workstations, networking equipment, and printers.
  5. Software: The programs and applications used to manage and handle the data, such as spreadsheet software and database systems.

Types of Information Systems


  1. Transaction Processing Systems (TPS): Used to record and manage day-to-day business transactions. An example is a Point of Sale (POS) system, which tracks daily sales.
  2. Management Information Systems (MIS): These systems guide middle-level managers in making semi-structured decisions. They use data from the Transaction Processing System as input.
  3. Decision Support Systems (DSS): Utilized by top-level managers for semi-structured decision-making. DSS systems receive data from the Management Information System and external sources like market forces and competitors.