MIS Practice Questions for Assessment Exam
Management Information System
MIS
is the use of information technology, people, and business processes to record,
store and process data to produce information that decision makers can use to
make day to day decisions. The full form of MIS is Management Information
Systems. The purpose of MIS is to extract data from varied sources and derive
insights that drive business growth.
The need for MIS
The following are some of
the justifications for having an MIS system.
1. Decision
makers need information to make effective decisions. Management Information
Systems (MIS) make this possible.
2. MIS
systems facilitate communication within and outside the organization –
employees within the organization are able to easily access the required
information for the day to day operations. Facilitates such as Short Message
Service (SMS) & Email make it possible to communicate with customers and
suppliers from within the MIS system that an organization is using.
3. Record
keeping – management information systems record all business transactions of an
organization and provide a reference point for the transactions.
Components of MIS
The
major components of a typical MIS long-form (Management Information System)
are:
1. People
– people who use the information system
2. Data
– the data that the information system records
3. Business
Procedures – procedures put in place on how to record, store and analyze data
4. Hardware
– these include servers, workstations, networking equipment, printers, etc.
5. Software
– these are programs used to handle the data. These include programs such as
spreadsheet programs, database software, etc.
Types of
Information Systems
The
type of information system that a user uses depends on their level in an
organization. The following diagram shows the three major levels of users in an
organization and the type of information system that they use.

What is MIS?
Intoduction & Definition
Transaction Processing
Systems (TPS)
This
type of information system is used to record the day to day transactions of a
business. An example of a Transaction Processing System is a Point of Sale
(POS) system. A POS system is used to record the daily sales.
Management Information
Systems (MIS)
Management
Information Systems abbreviated as MIS, are used to guide tactic managers to
make semi-structured decisions. The output from the transaction processing
system is used as input to the MIS system.
Decision Support Systems
(DSS)
Decision
support systems are used by top level managers to make semi-structured
decisions. The output from the Management Information System is used as input
to the decision support system.DSS systems also get data input from external sources
such as current market forces, competition, etc.
Manual Information
Systems VS Computerized Information Systems (MIS)
Data
is the bloodstream of any business entity. Everyone in an organization needs
information to make decisions. An information system is an organized way of
recording, storing data, and retrieving information.
In
this section, we will look at manual information systems vs. computerized
information systems.
Manual Information
System
A
manual information system does not use any computerized devices. The recording,
storing and retrieving of data is done manually by the people, who are
responsible for the information system.
The following are the
major components of a manual information system
1. People
–people are the recipients of information system
2. Business
Procedures –these are measures put in place that define the rules for
processing data, storing it, analyzing it and producing information
3. Data
–these are the recorded day to day transactions
4. Filing
system – this is an organized way of storing information
5. Reports
–the reports are generated after manually analyzing the data from the filing
system and compiling it.
The
following diagram illustrates how a typical manual information system works

What is MIS?
Intoduction & Definition
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