Role of Management Information System (MIS)

29/03/2020 1 By indiafreenotes

Simply MIS stand For Management Information System. For Simply Understanding Management Information System (MIS) we can divide in to three Word and Understand Part by part

  • Management: “Management is function to do the work at the Right time, by the right Person, For the Right Job.”
  • Information: “Information is the Collection of Organized data which plays a Vital Role for decision making.”
  • System: “System Consist for a set of elements which Provides a Framework to convert Unorganized (Data) into Organized Information.”

Role of Management Information System

Management information system (MIS) has become Very Necessary due to Emergence of high complexity in Business Organization. It is all to know that without information no Organization can take even one step properly regarding the decision making process. Because it is matter of fact that in an organization decision plays an essential role for the achievement of its objectives and we know that every decision is based upon information. If gathered information are irrelevant than decision will also incorrect and Organization may face big loss & lots of Difficulties in Surviving as well.

  1. Helps in Decision making

Management Information System (MIS) plays a significant Role in Decision making Process of any Organization. Because in Any organization decision is made on the basis of relevant Information and relevant information can only be Retrieving from the MIS.

  1. Helps in Coordination among the Department

Management information System is also help in establishing a sound Relationship among the every persons of department to department through proper exchanging of Information’s.

  1. Helps in Finding out Problems

As we know that MIS provides relevant information about the every aspect of activities. Hence, If any mistake is made by the management then Management Information Systems (MIS) Information helps in Finding out the Solution of that Problem.

  1. Helps in Comparison of Business Performance

MIS store all Past Data and information in its Database. That why management information system is very useful to compare Business organization Performance. With the help of Management information system (MIS) Organization can analyze his Performance means whatever they do last year or Previous Years and whatever business performance in this year and also measures organization Development and Growth.


A Management Information System (MIS) comprises five key components – people, business processes, data, hardware, and software. These components work collaboratively to achieve the organization’s objectives and ensure smooth operations.


Users of the information system, such as accountants, human resource managers, etc., record day-to-day business transactions. The ICT department supports these users, ensuring the system’s proper functioning.

Business Procedures:

Agreed-upon best practices that guide users and other components in working efficiently. These procedures are developed by various stakeholders, including users and consultants.


Recorded day-to-day business transactions, collected from various activities like deposits and withdrawals for a bank.


The physical equipment like computers, printers, and networking devices that provide computing power for data processing, as well as networking and printing capabilities. Hardware accelerates the transformation of data into valuable information.


Programs that run on the hardware. Software is divided into system software (e.g., operating systems like Windows, Mac OS, Ubuntu) and applications software (e.g., Payroll program, banking system, point of sale system) that facilitate specific business tasks.

In an MIS, these components form an interconnected ecosystem, with people using business procedures to interact with and record data. The hardware, along with the software, processes this data, transforming it into meaningful information accessible to users. The effective collaboration of all these components ensures the MIS serves its purpose, providing valuable insights for decision-making and supporting business operations.