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Components of Management Information System (MIS)

MIS | Components: In this tutorial, we will learn about the components and functions of Management Information System (MIS). By IncludeHelp Last updated : June 01, 2023

MIS is a system that takes data as input, processes it to generate information that can help the management of an organization in decision-making and strategic planning. Today, most organizations implement the MIS so as to achieve the organizational goals.

Components of Management Information System (MIS)

The MIS has various components, which are as follows:

1. Executives

Executives are the people who utilize MIS. These people are computer professionals who operate MIS for data processing to achieve organizational goals like planning and decision-making.

2. Hardware

The hardware components of MIS include various input and output devices that helps in feeding data as well as displaying the information when required. The input devices include the keyboard, scanners and mouse. The output devices may be the monitor, printer, network devices, and so on.

3. Software

Computer programs which are designed to do a specific task for example, MS Office, Banking Software’s, Railway’s applications etc, different kinds of software available to process the data/information in an organization such as ERP (enterprise resource planning) and CRM (customer relationship management).

4. Organizational Procedures

Procedures are sets of rules or guidelines that an organization establishes for the use of a computer-based information system. The procedures may vary from one organization to another. It may also vary from one department to another as per the requirement. For example, the working of production department is different from the working of sales department. The production department requires information regarding the raw material or quantity of goods to be produced. So, the production department sets its procedures in such a way that the MIS system helps in retrieving the information required by the department. In the similar way, the sales department requires information regarding the quantity of goods sold and the other expenses that occurred during the sales of the product. Therefore, the sales department sets the procedures in such a way that they get only that information which is required from the MIS.

Functions of MIS

The main goal to set up an MIS in a company is to utilize the information by its managers for managerial purpose for decision making. MIS performs following functions to achieve organizational goal:

1. To collect useful data:
   MIS executes the data through computer system using the sources of an organization. The organizational data is stores in computer system or as a paper record by its end users.
2. Data Processing:
   Processing data includes converting the storage data into the required information to take beneficial actions. Data processing includes mathematical and logical operations like, calculations, sorting, classifying and summarizing the data. The data processing signifies processing activities as:
   • Organize data
   • Analysis on data
   • Apply statistical, mathematical, operations
   • To create predictive modeling
   • Research and forecasting
3. Information storage and retrieval:
   MIS stores data as an organizational record and processed for future use. The data organizes as a fields, records, files and databases for future use. Information retrieval comprises to access the stored data as per the requirements of the management users.


4. Disseminating management information:
   information of finished product is categorizes and dispersed to the users in an organization as per the needs. This information could be periodic, through reports or online through computer terminals. Figure shows various functions performed by MIS.