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Management Information Systems

Management Information Systems

Management information systems are systems that provide management with information to aid them in decision making.

These systems are made up of three components; information, technology and people. They are perceived as part of the internal control procedures of an organization to solve business problems of a business wide strategy or costing of a product.

In Change Management Models the difference between management information systems and other information systems is that, the former analyzes other systems at well. It applies documents, procedures, technologies, people and information from other systems and used by senior management and accountants to solve problems. Some types of management information systems include decision support systems, expert systems and executive information systems.

Periodic reporting is done manually in most organizations and is mostly a result of the accounting system and any other information. The reports took so long in coming, for instance, end of year financial statements are completed at the end of the first quarter of the next year. The information made available was also limited as people had to extract and analyze the information. The little said about the integrity and accuracy of such information, look at here now.

Management information systems do things a little more different. They are linked to point of sales, accounting and payroll systems. Thus, any information needed to produce reports is readily available. Reports are produced on time and contain accurate information. Management information systems are also able do complex analysis on the data provided and do more than just providing reports.

Decision support systems

Decision support systems

These are complex management information systems that produce very complex reports that management can just look at and make decisions. One system for instance, is able to analyze customer purchases such that it determines which products are normally bought together, thus telling management of a supermarket to place the two products side by side to make it easier for customers. For instance, sales receipts with diapers also have beer on the list of items. Management will therefore place the beer stand beside the diaper stand.

Components of management information systems

Information systems are made up of many components, which coordinate to yield better results. These components include technology, information, procedures and people.


Technology is an essential component of modern information systems. It includes all hardware and software infrastructure put in place to support the systems. The technology is just a platform on which the systems stand and are supported. Having the relevant data is more important than having the most current technology, if it does not support your systems effectively.


The term id ‘garbage-in garbage-out when it comes to information. The entire system depends on information given to it. The information must therefore be verified over and over to ensure its accuracy and integrity. Simple information verification methods can be used to ensure that the information entered is valid. For instance, a telephone number can be defined to have a format of 10 digits, and any number that does not follow the format is regarded as inaccurate.


Procedures are the activities and tasks that are performed to make use of any information system. It involves data entry procedures, and reporting procedures.


People are seen as the most complex as well as important components of any information system. All the other components of information systems are predictable and fairly stable, but not people. Behavior of people is unpredictable and unstable.

This is because, with people, emotions also come to play and these we all know cannot be predicted.

Management information systems are the managers’ aids in decision making today. Managers do not have to manually scan through information to make it usable, the systems do that.

George Martin Administrator

George Martin is a business consultant born in New York City. He is very talented and never got 2nd except for the 1st place in school and college life. His dream was to own a business firm. So, he never applied for a job. In 2009, he opened a consultanting firm. He completed his graduation in International Business and Finance at Fordham University. Traveling is his favorite hobby and never missed to make a trip with his family to a new place every month.