Home ยป What is a Management Information System?

What is a Management Information System?

Management Information System (MIS) is a system that provides managers and employees with the information they need to perform their jobs as effectively as possible.

It’s purpose is to distribute timely and useful information from both internal and external sources to the managers and employees who need it

Information Technology (IT) Officer – A manager at the executive level who is responsible for ensuring that firm has the equipment necessary to provide the information the firm’s employees and managers need to make effective decisions.

1) A Firm’s Information Requirements

The specific types of information they need depend on their work area and on their level within the firm. Many firms are organized into five areas of management: finance, operations, marketing, human resources, and administration.

a) Financial Managers

Must ensure that the firm’s managers and employees, lenders and suppliers, stockholders and potential investors, and government agencies have the info they need to measure the financial health of the firm.

Debts and receivables, cash flow, future capitalization needs, financial statements, and other accounting information.

Present state of the economy, interest rates, and predictions of business conditions in the future.

b) Operations Managers

Concerned with present and future sales levels, current inventory levels of work in process and finished goods, and the availability and cost of the resources required to produce products and services.

c) Marketing Managers

Need to have detailed information about a firm’s products services and those offered by competitors (pricing, strategies, new promotional campaigns, and products that competitors are test marketing.

d) Human Resources Managers

Anything that has to do with the firm’s employees (current wage levels, benefits packages, current legislation and court decisions that affect employment practices, union activities).

e) Administrative Managers

Responsible for overall management of the organization (coordination of information such as material, human, and financial resources).

Need to ensure that all employees have access to the information they need to do their jobs

2) Size and Complexity of the System

MIS must be tailored to the needs of the organization it serves.

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