SECTION 2: INTERNAL ORGANISATIONAL ENVIRONMENT

LECTURE 8
MANAGEMENT INFORMATION SYSTEMS (MIS)

MIS Definition:
MIS is the formal mechanism for making available to management, the accurate and timely
information necessary to facilitate the decision making process and assist the organisation in
planning, controlling and carrying out its operational functions efficiently and effectively.

Main activities of an MIS:

1. Accepting instructions
2. Receiving information
3. Processing information
4. Sending information to devices
5. Storing information

Design of an MIS:
1. Set objectives
2. Identify constraints
3. Determine information needs and sources
4. Put system together

Role of MIS:
1. Provides managers with information (reports) to help them perform activities that
directly relate to their specific areas of responsibility.
2. Provides a coordinated system of information processing among the functional
departments. i.e departments share data
3. Speeds up decision making and enables precise decisions to be made
4. Facilitates trade
5. Facilitates problem solving by testing different scenarios using computerized data.

USES OF MIS IN COMMERCE AND INDUSTRY:

1. As an aid to Management
2. Control by MIS
3. Computerised research and design

1
 4. Computerised information systems
5. Computerised clerical operations

BENEFITS OF MIS:
1. Provides a data bank
2. Facilitates decision making and effective communication
3. Improves productivity
4. Allows immediate communication
5. Improves competitive advantage
6. Up to date, accurate and easy to access information.

Challenges of MIS:
1. Can be costly to acquire and implement.
2. Needs skilled and trained staff.
3. Technology may become outdated.
4. User-designer communication gap.

Examples of Management Information Systems:

 Transaction Processing System: Supports the day to day operations of the business
eg. Electronic transfer of funds
 Decision support systems: Provides information for managerial decision making eg.
Sales figures for reports.
 Office Automation System: Provides support for office operations eg.
Communication
 Executive Support System: Provides information for high level management or
executive decision making.
 Human Resource Information System: Provide information related to the people
aspect of the organisation eg. Performance management.
 Marketing Information System: Provides information on the marketing aspects of
the organisation eg. Market research, pricing strategies.