An Effective Management Information System (9 Characteristics) (2024)

Essential characteristics of an effective management information system are 1. MIS is management oriented 2. MIS is developed under the direction of management 3. MIS is an integrated system 4. common data flows 5. MIS is based upon future needs of the business 6. MIS is composed of sub-systems 7. MIS requires flexibility 8. distributed data processing and 9. MIS is mostly computerized.

Management Information System is established in an organization to provide relevant information to the managers to operate effectively and efficiently.

1. MIS is management oriented:

The design of MIS starts with an appraisal of the information needs of the management. The system is usually designed from top to bottom. However, this does not mean that MIS fulfils the information needs of top management only.

It only implies that information needs of the top management will serve as a basis for assessment of information needs of lower level managers. In every case the system should be designed to cater to the information needs of all levels of management.

2. MIS is developed under the direction of management:

Because of management orientation of MIS, it is imperative that, management of an organisation actively directs the development and establishment of the MIS in an organisation. It is rare to find an MIS where the manager himself, or a high level representative of his department, is not spending a good deal of time in the system design.

It is not a onetime involvement, because continued review and participation are necessary to ensure that the implemented system meets the specifications of the system that was designed. Therefore, management of the organisation should not only take active part in the development of MIS but also play a major role in effecting subsequent changes in the system so that it serves the information needs of the management.

3. MIS is an integrated system:

MIS is an integrated system which blends information from several operational areas to serve the information needs of the management more effectively. It takes a comprehensive view of the interlocking sub-systems which operate within an organisation.

For example, in order to develop an effective production scheduling system, the management must balance such factors as (a) production capacity, (b) work force (c) inventory levels (d) nature of the product (e) demand pattern of the product (f) capital requirements and (g) marketing network. A system that ignores one of these elements will not provide an efficient production schedule.

4. Common data flows:

MIS seeks to avoid duplication and redundancy in data collection, storage and dissemination of information. The designers of MIS are aware that a few key source documents account for much of the information flow and affect many functional areas.

The concept of common data flow requires building and using master files, for recording and reporting information. This concept supports several of the basic principles of system analysis avoiding duplication, combining similar functions and simplifying operations wherever possible.

5. MIS is based upon future needs of the business:

MIS is designed to serve the objectives and needs of the business in an effective manner. The MIS designer must avoid the possibility of system obsolescence before the system gets into operation. If MIS is designed after taking care of future information needs of the business, there remains little chance of its becoming obsolete.

6. MIS is composed of sub-systems:

MIS although viewed as a single entity, must be broken down into sub-systems. The breakdown of MIS into meaningful sub­systems sets the stage for a prioritized implementation. It also enables the MIS designer to focus on manageable entities that can be assigned and computerised by selected systems and programming teams.

7. MIS requires flexibility:

MIS is designed to fulfill the information needs of management for future decision making. Despite a careful analysis of future information needs of the management, it is impossible to predict accurately all the events of three to five years ahead.

This is true in most industries and especially in those industries with rapid changing patterns. Therefore, the MIS should be designed in such a manner so as to permit appropriate changes in future, if the MIS does not allow any modification, it is bound to become obsolete very soon.

8. Distributed data processing:

In case of companies having geographical network of sales offices, distribution points, manufacturing plants, divisions and subdivisions, some form of distributed data processing is necessary, since some of these units may be operated in a completely independent fashion.

The purpose of distributed data processing is to ensure that information is placed in the hands of those who need it at the time when they need it. However, the sub-systems designed for distributed data processing should be considered as the integral parts of the MIS of the company.

9. MIS is mostly computerized:

Now-a-days, all activities of MIS viz., data collection, data processing and data retrieval are accomplished through electronic media. The use of computer assures accuracy and consistency in processing data and speeds up dissemination of information.