Here is a compilation of essays on ‘Management Information System’ for class 9, 10, 11 and 12. Find paragraphs, long and short essays on ‘Management Information System’ especially written for school and college students.
Essay on Management Information System
- Essay on the Definition of MIS
- Essay on the Evolution of MIS
- Essay on the Concept of MIS
- Essay on the Need for MIS
- Essay on the Types of Management Information Systems
- Essay on the Steps for Development of MIS
- Essay on the Importance of MIS
- Essay on the Advantages of MIS
- Essay on the Limitations of MIS
Essay # 1. Definition of MIS:
MIS has been understood and described in a number of ways. It is popularly known as information System, the information and decision System, the computer based information system.
Some of the definitions of MIS are:
Management Information System (MIS) is basically concerned with the process of collecting, processing, storing and transmitting relevant information to support the management operations in any organizations.
MIS also refers to the organization that develops and maintains most or all of the computer systems in the enterprise so that managers can make decisions. The goal of the MIS organization is to deliver information systems to the various levels of corporate managers.
Management Information Systems (MIS) sometimes referred to as Information Management and Systems, is the discipline covering the application of people, technologies, and procedures collectively called information systems to solving business problems.
Information management is the process whereby data are collected and analyzed for the purpose of planning, evaluating, and monitoring systems.
A Management Information System (MIS) is an integrated user-machine system for providing information to support operations, management and decision making functions in an organization. The system utilizes computers, manual procedures, models for analysis, planning, control and decision-making, and a database.
Essay # 2. Evolution of MIS:
Organisations have always had some kind of management information system, even if it was not recognised as such. In the past, these systems were of a highly informal nature in their setup and utilisation. Not until the advent of computers, with their ability to process and condense large quantities of data, did the design of MIS become a formal process and field of study.
When computers were first introduced into organisations, they were used mainly to process data for a few organisational functions—usually accounting and billing. As the speed and ease of processing data grew, other data processing and information management tasks were computerized. The growth of EDP departments spurred managers to plan their organisation information systems more rationally.
These efforts led to the emergence of the concept of computer-based information systems (CBIS), which became better known as computer based MIS-or simply MIS. Recent advances in computers have made it possible for EDP/MIS experts, and then for managers, to gain on-line or real-time access to the data bases in CBISs.
The near future will witness the widespread use of expert systems using artificial intelligence to diagnose problems, recommend strategies to avert or solve these problems, offer a rationale for these recommendations, and learn from each experience. In effect, the expert system acts like a human expert in analyzing unstructured situations.
Essay # 3. Concept of MIS:
The Concept of Management Information Systems (MIS) originated in the 1960s and contains three individual concepts namely management, information and system.
It is the essential part of any group activity. An organization cannot survive without management. Management is defined as the art of getting things done through others. The basic functions, which a manager performs in an organization are planning, organizing, staffing, directing and controlling. Decision-making is a major requirement of each of these managerial functions.
Information is the central concept of MIS. Information consists of data that have been processed and are meaningful to a user. Information is something which management expects to know at a given time. Information includes knowledge acquired by some means.
The information is needed to plan, organize, direct and control the business. The effectiveness of any information is dependent on the timing and the content of the information presented and management action. The need for management information is felt when the managers have to make decisions.
A system may be defined as a set of elements, which are joined together to achieve a common objective. A system includes an orderly arrangement according to some common principles or rules. A system is a plan or method of doing something. The elements of a system are input, process and output as shown in Fig. 16.2.
For example in any manufacturing organization, the input to the system is raw material, which is processed by various processing facilities to convert it into finished product which is output of the system. When feedback and control elements are attached to any system, to make itself regulating and self-monitoring, it is known as cybernetic system as shown in Fig. 16.3.
Thus from the above three components of management i.e., management, information and system, it has been found that decision making is the essence of management and for taking decisions information is an essential and vital input. Further to obtain information, there is need of information system. Thus MIS is a system that allows managers to make decisions for the successful operation of businesses.
Essay # 4. Need for MIS:
A majority of workers today are knowledge workers. They spend their time by creating, distributing, or using information. For example bankers, coordinators, counselors, community organizers, programmers etc. Some examples of MIS includes airline reservations (seat, booking, payment, schedules, boarding list, special needs, etc.), train reservation, bank operations (deposit, transfer, withdrawal) etc.
The need for management information system arises because of the following reasons:
a. About 80% of an executive’s time is devoted to information receiving, communicating, and using it.
b. Information is the basis for virtually all activities performed in an organization
c. People and information are the two key ingredients that are best used in the organizations.
d. Effective utilization of information systems in management.
e. Productive use of information.
f. Information is a resource to increase efficiency, effectiveness and competitiveness of an enterprise.
g. Support of its business process and operations.
h. Support of decision-making by its employees and managers.
Essay # 5. Types of Management Information Systems:
(i) Transaction-Processing Systems.
(ii) Operations Information Systems.
(iii) Decision Support Systems (DSS).
(iv) Expert Systems and Artificial Intelligence.
(i) Transaction-Processing Systems:
Transaction-processing systems are designed to handle a large volume of routine, recurring transactions. They were first introduced in the 1960s with the advent of mainframe computers. Transaction-processing systems are used widely today. Banks use them to record deposits and payments into accounts. Supermarkets use them to record sales and track inventory. Managers often use these systems to deal with such tasks as payroll, customer billing and payments to suppliers.
(ii) Operations Information Systems:
Operations information systems were introduced after transaction-processing systems. An operations information system gathers comprehensive data, organizes it and summarizes it in a form that is useful for managers. These types of systems access data from a transaction-processing system and organize it into a usable form. Managers use operations information systems to obtain sales, inventory, accounting and other performance-related information.
Operations information systems are of following types:
a. Accounting Management Information Systems.
b. Financial Management Information Systems.
c. Manufacturing Management Information Systems.
d. Marketing Management Information Systems.
e. Human Management Information Systems.
(a) Accounting Management Information Systems:
In these types of systems, all accounting reports are shared by all levels of accounting managers.
(b) Financial Management Information Systems:
The financial management information system provides financial information to all financial managers within an organization including the chief financial officer. The chief financial officer analyzes historical and current financial activity; projects future financial needs, and monitors and controls the use of funds over time using the information developed by the MIS department.
(c) Manufacturing Management Information Systems:
A manufacturing management information system provides manufacturing information to the different levels of management regarding inventory levels, production processes, rejections etc.
(d) Marketing Management Information Systems:
A marketing management information system supports managerial activity in the area of product development, distribution, pricing decisions, promotional effectiveness, and sales forecasting.
(e) Human Management Information Systems:
Human resources management information systems are concerned with activities related to workers, managers, and other individuals employed by the organization. Because the personnel function relates to all other areas in business, the human resources management information system plays a valuable role in ensuring organizational success. Activities performed by the human resources management information systems include, work-force analysis and planning, hiring, training, and job assignments.
(iii) Decision Support Systems (DSS):
A DSS is an interactive computer system that can be used by managers without help from computer specialists. A DSS provides managers with the necessary information to make informed decisions.
A DSS has three fundamental components:
a. Database Management System (DBMS):
Database Management System (DBMS), which stores large amounts of data relevant to problems the DSS has been designed to tackle;
b. Model-Based Management System (MBMS):
Model-Based Management System (MBMS) which transforms data from the DBMS into information that is useful in decision-making; and
c. Dialog Generation and Management System (DGMS):
Dialog Generation and Management System (DGMS) which provides a user-friendly interface between the system and the managers who do not have extensive computer training.
(iv) Expert Systems and Artificial Intelligence:
Expert systems and artificial intelligence use human knowledge captured in a computer to solve problems that ordinarily need human expertise. Mimicking human expertise and intelligence requires the computer to do the following: recognize, formulate and solve a problem; explain solutions; and learn from experience.
These systems explain the logic of their advice to the user; hence, in addition to solving problems they also can serve as a teacher. They use flexible thinking processes and can accommodate new knowledge.
Essay # 6. Steps for Development of MIS:
The development of MIS consists of the following stages/steps:
(i) Establish the Need for System:
The need for a system often exists but it is not acted upon until the conditions become intolerable. For example need for information system in a manufacturing organization is because of excessive inventories, high production costs, poor delivery performance, large number of rejections etc.
(ii) Conduct a Feasibility Study:
After establishing the need of the system, next step is to conduct a feasibility study. The feasibility study is undertaken to know the usefulness of the system to the organization. Technical and economical feasibility of the proposed system is carried out.
Technical feasibility considers things such as development of hardware and software capable of meeting the needs of the proposed system. Economic feasibility considers things such as evaluation of costs and returns to know whether the returns justify the investment in the system.
(iii) Obtain Management Approval:
After conducting the feasibility study, the next step is to take approval from the top management for development of the proposed system.
(iv) System Analysis:
Analysis is a detailed study of various operations of a system, along with its boundaries. This step involved detailed study of the information needs of the organization and its end users, existing and expecting information systems.
(v) System Design:
System design refers to the technical specifications that will be implied in constructing the system.
(vi) System Construction and Testing:
The next step after design is the construction and testing of the system. The construction involves physical creation of the system. The system analyst test the system to check its working as per the expectations or not. He corrects the flaws in the system if any.
(vii) System Implementation:
Implementation is the most crucial phase of the development process because this step is very important in assuring the success of any new developed system. This step involves hardware and software acquisition, site preparation, user training and installation of the system.
(viii) System Evaluation:
After the system has been operating smoothly for a short period of time, an evaluation of each step in the design and of the final system performance is made. This is a feedback about the system.
(ix) System Maintenance:
The last step is the maintenance of the installed system. It involves the monitoring, evaluating and modifying a system to make necessary improvements. The maintenance of the system is done to reduce the errors due to design, or environmental changes.
Essay # 7. Importance of MIS:
The overall purpose of MIS is to provide profitability and related information to help managers and staff understands business performance and plans its future direction.
The importance of MIS can be seen from the following points:
a. MIS is always management oriented and keeps in view every level of management and gets the desired information.
b. MIS is useful for planning as every organization makes log-term and short-term plans with the help of information like sales and production, capital investments, stocks etc.
c. Effective MIS helps the management to know deviations of actual performance from preset targets and control things.
d. MIS is important for increasing efficiency.
e. MIS provides updated results of various departments to management.
f. MIS is highly computerized so it provides accurate results.
g. MIS adds to the intelligence, alertness, and awareness of managers by providing them information in the form of progress and review reports of an on-going activity.
h. MIS helps managers in decision-making.
Essay # 8. Advantages of MIS:
An MIS provides the following advantages:
a. It facilitates planning i.e., MIS improves the quality of plans by providing relevant information for sound decision making.
b. It helps in efficient management of large volumes of information and records.
c. MIS helps in measuring performance and making necessary changes in the organizational plans and procedures.
d. It brings co-ordination i.e., MIS facilities integration of specialized activities by keeping each department aware of the problem and requirements of other departments.
e. It makes control easier i.e., MIS serves as a link between managerial planning and control. It improves the ability of management to evaluate and improve performance.
f. MIS assembles, process, stores, retrieves, evaluates and disseminates the information.
Essay # 9. Limitations of MIS:
Though management information systems are becoming increasing beneficial, there are certain limitations to these systems:
a. MIS leads to unemployment as humans are replaced by systems.
b. MIS systems are expensive to install and maintain.
c. These systems cost more and require more time than estimated.
d. Once installed, these systems become difficult and expensive to improve with changing management objectives.
e. The problems of accuracy and reliability become critical, as the organization becomes more dependent on these systems.