Management and organizations facing constantly changing problems, diverse managerial styles, and ever present information needs offer a challenging context for developing computer based information systems. MIS uses computer technology to provide information and decision support to managers, helping them becomes more effective. Developments in the young computer industry are changing corporate management style. A management information system (MIS) is a system that provides information needed to manage organizations effectively.
Management information systems are regarded to be a subset of the overall internal controls procedures in a business, which cover the application of people, documents, technologies, and procedures used by management accountants to solve business problems such as costing a product, service or a business-wide strategy. Management information systems are distinct from regular information systems in that they are used to analyze other information systems applied in operational activities in the organization.
Academically, the term is commonly used to refer to the group of information management methods tied to the automation or support of human decision making, e. g. Decision Support Systems, Expert systems, and Executive information systems Role of the Database in an Organization: An organization is traditionally viewed as a three level pyramid-operational activities at the bottom, management planning and control activities in the middle and strategic planning and policy making in top management.
The corporate database contains data relating to the organization, its operations, its plan and its environment. State of Database Management In Organizations: The needs of organizations and management are changeable, diverse and often ill-defined, yet they must be met. Added to these are outside pressures from federal taxing authorities, federal securities agencies and legislators making privacy laws. Both internal and external forces demand that organizations exercise control over their data resources.
Decisions and actions in the organization are based upon the image contained in the corporate database. Managerial decisions direct the actions at the operational level and produce plans and expectations which are formally captured and stored in the corporate database. Transactions record actual results of organizational activities and environmental changes and update the database to maintain a current image. People in the organization query the database for information to conduct the daily operations.
Middle management receives reports comparing actual results to previously recorded plans and expectations. The corporate database provides data for modeling and forecasting which support top management needs. The corporate database supports all levels of an organization and is vital for operations, decision making and the management process. While management seeks to control data resources, computer applications grow. When a corporation achieves comprehensive support of its operations, for instance, computer applications begin to penetrate into higher management levels.
With comprehensive database support of operations, an MIS can mature as a tool for planning, control and decision making. Earlier, in the development of an MIS, an organization must appoint a DBA to manage its data resources. A computer system designed to help managers plan and direct business and organizational operations. Computer-based or manual system that transforms data into information useful in the support of decision making. MIS can be classified as performing three functions: 1) To generate reports-for example, financial statements, inventory status reports, or performance reports needed for routine or non-routine purposes. (2) To answer what-if questions asked by management. For example, questions such as “What would happen to cash flow if the company changes its credit term for its customers? ” can be answered by MIS. This type of MIS can be called Simulation. (3) To support decision making. This type of MIS is appropriately called Decision Support System (DSS). DSS attempts to integrate the decision maker, the data base, and the quantitative models being used.