Management Information System and its Types

A management information system (MIS) provides businesses and institutions with sophisticated management tools to manage their information systems.

Management Information System is a computerized database equipped with programs and organized to generate organized reports on every business level.

Reports regarding specific events can be acquired through the management information system.

Managers receive feedback on their performance from a management information system. This system allows senior management to monitor the organization’s performance.

The system examines the “actual” performance concerning the projected results and the previous year’s results.

It’s also possible to compare the company’s performance with last year’s and its goals for this year. Data are gathered from various company operations and departments as part of the management information system.

The ability to connect computer counters and re-mail data entered into the system periodically is one way some data can be collected electronically.

The built-in query language provides on-demand access to reports created on a scheduled basis.

There are twelve distinct types of Management Information Systems.

Control of the Process

In the Control of the Process system, a business can track its physical or industrial operations, such as vehicle assembly, oil refinery, or metals manufacturing.

Data is continuously collected and reported on the performance of the process control system. The management information system of any manufacturing company is critical to its success.

It facilitates the manager’s evaluation of the process’s effectiveness and gives detailed information about the frequency of specific events over time.

The statistic also shows how often the production process departed from a cyclic pattern.

The information gained from these measurements is beneficial for assessing a production system’s productivity and ensuring personnel and machine safety.

Management Information System (MIS)

Management Information System produces reports for all levels of management on a company’s activities and finances.

The company’s management report system allows the manager to compare the current year’s performance to the previous year.

Management Information System and its Types

The manager can now evaluate their performance and seek to improve their company’s performance.

Senior management uses this report to compare the company’s profit potential and operational efficiency with the company’s defined goals.

Inventory Management

A business’s inventory comprises waste, sales, theft, and on-hand inventory. These items are tracked and sent to management via the inventory control system.

Management Information System allows managers to track when specific items are running low and when warehouses and stores need to be restocked.

Inventory management software tracks inventory movement between warehouses, department stores, and returns and sales.

Management information system for inventory management and storage is one of the most critical systems in any business. MIS is needed for goods held because they are essentially currency.

Business Development and Marketing

Marketing and sales functions can be executed and monitored within the Business Development and Marketing system.

The following are the marketing functions handled by the sales and marketing system.

  • Projected sales
  • Product quality enhancement
  • Projected sales 
  • Product quality enhancement
  • Using effective advertising, public relations, and sales promotion
  • Pricing, promotional offers, and advertising

In these reports, the company details, for example, which products performed well and which performed poorly at different retail locations.

Human Resources (Collaborative Enterprise/Office Automation)

Data flow inside the firm can be controlled using the Human Resources information management system.

Office automation information systems include electronic devices used by managers to communicate with managers in other departments, staff, and even employees.

Human resource management software assists in keeping track of existing employees and recruiting new ones. It also allows for the daily management of personnel.

A payroll and benefits system tracks payroll, benefits, and retirement contributions; all included in accounting and finance systems. Furthermore, the human resources system maintains a multitude of records.

Legal compliance notices require training events, and human resource regulations facilitate communication between employees, human resources, and management.

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The software tracks employee attendance and timekeeping and keeps track of available and used vacation and sick leave, so employee requests for leave need not be raised directly with the manager.

As well as automating the recruiting process, this management information system collects and reviews resumes to identify and assemble qualified potential candidates.

Finance and Accounting

Accounting and finance systems keep track of a business’s investments and assets.

For services such as payrolls, local governments, states, and pension funds, these reports provide data used to compile financial reports.

This system regularly generates a financial audit report and an annual report.

Furthermore, accounting and finance systems provide a standard means of recording routine transactions such as sales revenue, bank deposits, transfers, and returns.

System generated financial statements such as profits and losses and balance sheets, including monthly and annual reports.

For middle and senior management, these financial statements are critical to understanding the company’s performance and tracking and comparing its current financial position to its historical revenue and expenses.

Decision-Making Aid

A decision-Making Aid system is configured to assist the manager in deciding in the event of an emergency.

It collects information from both internal and external sources. External data sources include population trends, interest rates, and new house construction costs, while internal data includes manufacturing, sales, inventories, and financial data.

Managers may use a decision-support system to set annual sales objectives by considering external and internal factors.

Knowledge-Based System

Human experts on a certain subject teach others fewer skills to make judgments with a knowledge-based system that will capture and preserve their expertise.

Systems that use expert analysis interpret your actions based on previous actions in similar circumstances and then determine the best course of action.

Information System for the Executive

Executive information systems are developed to aid executive managers in managing executives.

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This system presents data in tables and charts, enabling managers to conduct analysis and make critical decisions.

System for Transaction Processing

An organization’s activities generate data collected and processed by a transaction process system.

An activity is something that is done. This includes payments, transactions, deposits, and reservations.

Information Management System for Schools

A school information system (SIMS) enables a school to manage its daily operations efficiently.

Numerous schools are implementing this technology to help develop students’ brains while also managing all of the school’s behind-the-scenes activities.

Management Information System and its Types

The school information system has significantly decreased the time required to update and manage student attendance records.

The school information system does this task efficiently and frees up teachers’ time for more useful activities.

Local Database Management Systems

Local databases are also a type of management information system. A local database contains detailed information about the community within a country.

The database incorporates information from business listings, public records, integration of local services, and responses to social surveys.

Source: Wikipedia