MANAGEMENT INFORMATION SYSTEM

ASSIGNMENT 1 UNIT 1

Q1. What do you understand by MIS ?

Ans. A Management Information System is
• An integrated user-machine system
• For providing information
• To support the operations, management,
analysis, and decision-making functions
• In an organization
The system utilizes
• Computer hardware & software
• Manual procedures
• Models for analysis, planning, control, and
decision making, and
• A database.

Q2. Explain the significance of MIS in modern day

organisation.
Ans.
• The main purpose of a management
information system is to make managers'
decision-making more efficient and
productive.
• By pooling information from a range of
sources into a single database and presenting
the information in a logical format.
• An MIS can provide managers with everything
they need to make highly informed decisions
and perform in-depth analysis of operational
issues.
Q3. Enumerate the benefits and limitations of
MIS.
Ans. Benefits of MIS :-
• Helps to achieve a higher level of efficiency:
Managers have the information needed to
identify a company's strengths and
weaknesses.
• Improves the quality of decisions: Better
availability of information reduces
 uncertainty and lets managers make more
rational decisions based on reliable data.
• Strengthens a company's competitive
advantage: Running a more efficient
business by reducing and eliminating
weaknesses and non-performing areas
increases a company's competitive
advantage over its rivals.
• Improves employee productivity:
Employees are more productive because
they don't have to spend time gathering the
data that management wants. A well-
designed MIS will gather all the data
without any more input from employees.
• Promotes better communications between
departments in a workplace: When
managers, department heads and
employees are sharing the same
information, there is better communication
between them to identify problem areas
and find mutually agreeable solutions.
Limitations of MIS :-
• In decision-making, MIS cannot take the
place of managerial decisions. It is merely
a valuable method for top-level
executives in making decisions and solving
problems.
• For businesses looking to improve their
operations management, MIS
implementation may be prohibitively
costly.
• The most serious fault in an MIS is when
sometimes in few instances, it provides
inaccurate or incomplete information to
the management executives. This issue
causes heavy costs to the company and
sometimes wrong decisions can be carried
out due to this MIS treated as knowledge
flaws.
• MIS is less effective to those
organizations, where information is not
important and not sharing with others.
• Only those employees who have been
educated and well trained are able to
 work on MIS, hence the employees who
are not educated cannot work with MIS.

Q4. How has MIS impacted the Decision Making

Process?
• Ans. Providing information to the whole
organization: MIS is such an effort to provide
decision making process information to the
whole organization. The system is a
methodical and structured assurance by
executive to the organization for providing all
computerized information.
• Analysing Situation: It is very difficult to take
decision without analysing situation. MIS
collects past information and generates ideas
for future which help to analyse the whole
situation of the organization.
• Supporting Management: There are various
managerial functions in the organization as
like planning, organizing, leading, controlling
and so on. Through providing various
techniques, methods, tools to the manager
 MIS helps to accomplish all managerial task in
an effective manner.
• Problem identification and understanding:
The important concept of MIS is to retain a
continuous flow of information to the
organization. Problem identification and
understanding its nature are the first and
foremost tasks of MIS.
Q5. Explain the significance of quality
information and data in business
organisations.
Ans.
• Data is the raw facts and statistics, whereas
Information is Data that is accurate and
timely; specific and organised for a purpose;
presented within a context that gives it
meaning and relevance; and can lead to an
increase in understanding and decrease in
uncertainty.
• The importance of data cannot be under-
stated as it provides the basis for reporting
the information required in business
operations.
 For instance, Customer data are the metrics
that relate to customer interaction. It can be
the number of jobs, the number of enquiries,
the income received, the expenses incurred,
etc. In order to know about our interactions
with the customer, we need data.
• This is the key importance of information - it
allows a business to make informed
decisions by presenting data in a way that
can be interpreted by management.
• However, it must be stated that the value of
information lies not only in the information
itself, but the actions that arise from the
information. For example, if the information
alerts you to poor customer satisfaction, it is
only useful if this creates a change in the way
the business deals with customers. Hence
the information process should form part of
a wider review process within the business
to gain the best outcomes.