Management information system

From CEOpedia | Management online

Management information system is an executive support system, which is composed of resources and information needs connected by communication subsystem. It is characterized by the following features:

  • performs the functions of identification, diagnostics, and problem solving,
  • resources and information needs are thematically related to various fields of management (e.g. finance, human resources, production),
  • it is located in the organizational structure of the company as an IT division or IT department, but it can also function in a distributed system.

Management processes are based primarily on the substantive analysis and the preparation and transfer of information. One of many tasks of managers is development of various types of presentation of the facts of any field of activity, reports, analyses, draft decisions. Management Information System is not replacement of managers, but is associated with increasing participation of IT technology not only in analysis and diagnosis, but also in decision-making. IT system does not replace managerial competence, or even take over the function of managers' processes, the role of information is mainly as a "cooperator" with the governing bodies. Development of information material is already a specialized conceptual work, which includes analytical operations, planning, consulting, etc.

Advantages of IT systems in management

Users of information systems are at the moment not only IT specialists or data-entry personnel, but also the management on different levels in organization. Thanks to the information and data processing tools (i.e.: information technology) they can effectively manage their organizations. The main factors to justify the use of information technology are:

  • Cost reduction: Data entry the system (transaction processing), allows to instantly use this data for analytical and decision-making, it does not require any additional steps associated with acquiring and processing information.
  • Quick access: The information can be delivered to the manager almost immediately. Even complex reports and statistics on the operation of the enterprise require only a few minutes of waiting. This reduces the time needed to obtain required information by the managers. It also means that the information supplied is correct, and the decisions taken on the basis thereof may bring more benefits for the organization.
  • Interactivity: Modern information management systems allow users instant access to needed information. User can create a variety of statements and reports with the information needed to make a correct decision. Information generated by the system do not require time-consuming and costly services of programmers, analysts, etc.
  • Flexibility: Management deal with many predicted earlier decision-making problems (e.g. reports on the budget or efficiency). Such problems can be solved using proven algorithms, applications and decision-making procedures. However, the problems that arise for the first time and for which there is no pre-programmed processing algorithms are a major challenge for computer systems. Advanced systems offer the possibility of a relatively simple extension of the new modules, algorithms and applications to information processing in response to the growing needs of the organization's management.

Management Information System tasks

  • Provide the information necessary to make decisions and shape the implementation of improvements needed for development of the company,
  • Ensuring interoperability of management and operational level.
  • Enabling efficient communication between employees,
  • Quick response to changes in the company and the environment, and taking corrective action,
  • Improvement of research and development processes,
  • Contribute to the preservation of organizational knowledge as a key resource of company.

Classification of management information systems

  • Area of ​​application: production management, material management systems, logistics management systems and distribution management systems, financial management systems.
  • Generation: transactional systems (record keeping), management information systems, decision support systems
  • Level of management: operations management systems, tactical management systems, strategic management systems.
  • Complexity: simple systems (single area and / or single-function), multi-sector systems and / or multi-functional complex systems.
  • Degree of integration: autonomous systems, partially integrated systems, integrated systems.
  • Versatility of solutions: systems based on packages and modules, individual systems, typical and standard systems

Computer systems supporting the management of information

  • Transaction systems (registering financial data),
  • Decision support systems (anticipating the effects of decisions, simulations),
  • Expert systems (artificial intelligence, the diagnosis of the causes of organizational problems),
  • Domain-Systems (serving particular business domain of activity),
  • Financial and accounting systems,
  • HR and Payroll Systems,
  • Production support systems (e.g. MRP, MRP II),
  • Sales support systems (e.g. CRM),
  • Logistics and supply chain management systems,
  • Office support systems,
  • Integrated Systems (ERP).

See also:


  • Gorry, G. A., & Scott Morton, M. S. (1971). A framework for management information systems.
  • Laudon, K. C., & Laudon, J. P. (2004). Management information systems: managing the digital firm. New Jersey, 8.
  • McLeod, R., & Schell, G. (2001). Management Information Systems 8/e. Chapter-17" Marketing Information System" published in.
  • O'Brien, J., Marakas, G. M., Hills, T. M. G., & Lalit, M. R. (2006). Management information systems.

Author: Krzysztof Wozniak

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