A management information system (MIS) is a computer-based system that supplies the necessary information to efficiently manage an organization. This system entails three primary resources: information, technology and people. MIS is designed to record information and enhance communication among employees. Management accountants use MIS to troubleshoot business problems such as product cost and business strategy. Businesses use several types of MIS.
Transaction-Processing Systems
Transaction-processing systems are meant to deal with a large quantity of recurring transactions. This system has been around since the 1960s. Many businesses use them: Banks use them to record deposits and withdrawals from accounts. Retailers use them to track inventory and record sales. These systems control payroll, billing and other types of payments.
Operations Information Systems
An operations information system takes large quantities of data and organizes it so managers can use it. This type of system uses information from transaction processing systems. Employees and managers use it to track sales, inventory and related accounting information.
Expert Systems and Artificial Intelligence
Expert systems and artificial intelligence organize human knowledge to troubleshoot problems that others humans would need to. This helps free up personnel for other duties. The computer system recognizes and resolves problems. These systems act as a teacher and explain their reasoning to the user. This system can process new knowledge and uses flexible thinking processes.
Decision Support Systems
Decision Support Systems (DSS) allow managers to use them without the aid of computer specialists. The systems provide managers with the pertinent information to make educated decisions. DSS had three primary functions: a database management system, which stores large volumes of data, a model-based management system that transforms information used for decision making, and a dialog generation and management system, which has a user-friendly formation so employees without vast computer knowledge can use it.
Considerations
One possible disadvantage to MIS is the lack of a human component, and the fct that a computer is doing the majority of the work. Occasionally, the MIS system cannot summarize the complex information. Some information cannot be quantified in these systems. For example, an employee's performance may not be accurately evaluated by a computer system, and an employee would still need to review the situation.
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