Role of MIS in Business Organization

MIS stand For Management Information System. For Simply Understanding Management Information System (MIS) we can divide in to three Word and Understand Part by part

  1. Management:Management is function to do the work at the Right time, by the right Person, For the Right Job.”

  2. Information:Information is the Collection of Organized data which plays a Vital Role for decision making.”

  3. System:System Consist for a set of elements which Provides a Framework to convert Unorganized (Data) into Organized Information.”

Management information system refers to such system which provides accurate information to the entire level of management for decision making process. For right job at the right time, by the right person.


Management information system (MIS) has become Very Necessary due to Emergence of high complexity in Business Organization. It is all to know that without information no Organization can take even one step properly regarding the decision making process. Because it is matter of fact that in an organization decision plays an essential role for the achievement of its objectives and we know that every decision is based upon information. If gathered information are irrelevant than decision will also incorrect and Organization may face big loss & lots of Difficulties in Surviving as well.

  • Helps in Decision making: Management Information System (MIS) plays a significant Role in Decision making Process of any Organization. Because in Any organization decision is made on the basis of relevant Information and relevant information can only be Retrieving from the MSI.

  • Helps in Coordination among the Department: Management information System is also help in establishing a sound Relationship among the every persons of department to department through proper exchanging of Information’s.

  • Helps in Finding out Problems: As we know that MIS provides relevant information about the every aspect of activities. Hence, If any mistake is made by the management then Management Information Systems (MIS) Information helps in Finding out the Solution of that Problem.

  • Helps in Comparison of Business Performance: MIS store all Past Data and information in its Database. That why management information system is very useful to compare Business organization Performance. With the help of Management information system (MIS) Organization can analyze his Performance means whatever they do last year or Previous Years and whatever business performance in this year and also measures organization Development and Growth.

Process of Management Information System

The Management Information System (MIS) is a set of systems and processes that organizations use to gather, organize, analyze, and present information to support decision-making and control. The process of a Management Information System involves several key steps:

  1. Identification of Information Needs:

    • Determine the information needs of the organization and its various departments.

    • Identify the types of information required for decision-making at different levels.

  2. Data Collection:

    • Collect relevant data from internal and external sources.

    • This data can include transactional data, performance data, market data, and other relevant information.

  3. Data Processing:

    • Organize and process the collected data to convert it into meaningful information.

    • Data processing involves tasks like sorting, summarizing, aggregating, and transforming raw data into a usable format.

  4. Database Management:

    • Maintain a structured database that can efficiently store and retrieve data.

    • Ensure data integrity, security, and accessibility.

  5. Information Generation:

    • Generate information based on the processed data.

    • This may involve creating reports, dashboards, and other forms of output that are relevant to the needs of decision-makers.

  6. Information Storage and Retrieval:

    • Store the generated information in a format that allows for easy retrieval.

    • Develop systems for quick and efficient retrieval of information when needed.

  7. Information Dissemination:

    • Distribute the information to the relevant individuals or departments.

    • Use various communication channels, such as reports, emails, or dashboards.

  8. Decision-Making Support:

    • Provide tools and resources to assist managers in making informed decisions.

    • This may involve the use of analytics, data visualization, and other decision support tools.

  9. Feedback and Evaluation:

    • Gather feedback from users about the effectiveness and relevance of the information provided.

    • Regularly evaluate and update the MIS to ensure it meets the changing needs of the organization.

  10. Security and Control:

    • Implement measures to secure the MIS against unauthorized access and data breaches.

    • Establish controls to ensure the accuracy and reliability of the information.

The goal of a Management Information System is to facilitate effective decision-making, enhance organizational performance, and provide a competitive advantage through the strategic use of information. The specific steps and components of an MIS can vary depending on the organization’s industry, size, and objectives.

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