Assignment Set 1
Q.1 What is MIS? Define the characteristics of MIS? What are the basic functions of MIS? Give some Disadvantage of MIS? Ans.: 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. In a management information system, modern, computerized systems continuously gather relevant data, both from inside and outside an organization. This data is then processed, integrated, and stored in a centralized database (or data warehouse) where it is constantly updated and made available to all who have the authority to access it, in a form that suits their purpose.
The characteristics of MIS are -
It supports transaction handling and record keeping.
i. It is also called as integrated database Management System which supports in major functional areas. ii. It provides operational, tactical, and strategic level managers with east access to timely but, for the most, structured information. iii.It supports decision –making function which is a vital role of MIS. iv.It is flexible which is needed to adapt to the changing needs of the organization. v.Coordination: MIS provides integrated information so that all the departments are aware of the problem and requirements of the other departments. This helps in equal interaction of the different centers and connects decision centers of the organization. The main functions of MIS are:
i.Data Processing: Gathering, storage, transmission, processing and getting output of the data. Making the data into information is a major task. ii. Prediction: Prediction is based on the historical data by applying the prior knowledge methodology by using modern mathematics, statistics or simulation. iii. Planning: Planning reports are produced based on the enterprise restriction on the companies and helps in planning each functional department to work reasonably. iv.Control: MIS helps in monitoring the operations and inspects the plans. It controls the timely action of the plans and analyzes the reasons for the differences between the operations and plan. Thereby helps managers to accomplish their decision making task successfully. v.Assistance: It stores the related problems and frequently used information to apply them for relative economic benefits. Through this it can derive instant answers of the related problem. vi.Database: This is the most important function of MIS. All the information is needs a storage space which can be accessed without causing any anomalies in the data. Integrated Database avoids the duplication of data and thereby reduces redundancy and hence consistency will be increased. vii.The major function of MIS lies in application of the above functions to support the managers and the executives in the organization in decision-making. The following are some of the disadvantages of MIS:
i.MIS is highly sensitive: MIS is very helpful in maintaining logging information of an authorized user. This needs to monitor constantly. ii.Quality of outputs is governed by quality of inputs.
iii.MIS budgeting: There is difficulty in maintaining indirect cost and overheads. Capturing the actual cost needs to have an accrual system having true costs of outputs which is extremely difficult. It has been difficult to establish definite findings. iv.MIS is not flexible to update itself for the changes.
v.The changes in the decision of top level management decrease its...