A management information system collects and processes data (information) and provides it to managers at all levels who use it for decision making, planning, program implementation, and control. The MIS has many roles to perform like the decision support role, the performance monitoring role and the functional support role. To facilitate Decision making in this ever-competitive world it is imperative that managers have the right information at the right time to bridge the gap between need and expectation. For better flow of information an adequate Management Information Systems (MIS) is the need of this age. Thus it is important to have an understanding of the MIS followed in an organization by all levels of management in order to take effective and appropriate decisions. It is usually also possible to obtain special reports from the system easily. The main purpose of the MIS is to give managers feedback about their own performance; top management can monitor the company as a whole. Information displayed by the MIS typically shows "actual" data over against "planned" results and results from a year before; thus it measures progress against goals. The MIS receives data from company units and functions. Some of the data are collected automatically from computer-linked check-out counters; others are keyed in at periodic intervals. Routine reports are preprogrammed and run at intervals or on demand while others are obtained using built-in query languages; display functions built into the system are used by managers to check on status at desk-side computers connected to the MIS by networks. Many sophisticated systems also monitor and display the performance of the company's stock.
Information systems and MIS are broader categories that include ERP
Decision support systems
Executive information systems
Marketing Information Systems
Accounting information systems
Enterprise Resource Planning
MIS improves the quality of planning by providing relevant information for sound decision – making . Due to increase in the size and complexity of organizations, managers have lost personal contact with the scene of operations.
MIS changes the larger amount of data in to summarized form and there by avoids the confusion which may arise when managers are flooded with detailed facts.
Decentralization of authority is possible when there is a system for monitoring operations at lower levels. MIS is successfully used for measuring performance and making necessary change in the organizational plans and procedures.
MIS facilitates integration of specialized activities by keeping each department aware of the problem and requirements of other departments. It connects all decision centers in the organization .
MIS serves as a link between managerial planning and control. It improves the ability of management to evaluate and improve performance . The use of computers has increased the data processing and storage capabilities and reduced the cost .
MIS report help to take decision and action on certain object with quick time.