Managerial information system is made up of three components ‘management’, ‘information and system’. Therefore, to understand its true meaning, it is necessary that we should know the meaning of all three components clearly.
Management is a method in which an enterprise achieves its objectives by coordinating, directing and controlling. Management experts explain several levels of management.
Pro. Jerome Kanter has described three levels of management in his book “Management Oriented Management Information System”:
- Strategic Management – It includes decision making for long-term planning, such as setting up a new plant or New market entry strategy.
- Tactical Management – Under this, decision making is included for detailed planning in relation to the implementation of long-term policy.
- Operational Management – It includes decision making and their implementation in relation to the daily routine operations of the business. Different levels of management require different types of information. Therefore, the information system of the organization should be in line with the requirements of the management levels.
The second component of the information system is information. Just as money, raw materials and employees are important in a business, similarly information is important in management work. In common colloquial language, data, data, news etc. are considered as ‘information’, but information or information means processes, information, facts, data or news. Every information is made up of facts or data but not every aggregate is information. Just as the raw material after passing through the production process becomes a product, similarly various types of information, news, data, and facts etc. The process of ‘information’ creation can be understood from the diagram below.
‘System’ is a very important component of Management Information System. System refers to making all the information as an organized unit. A system is the sum of four elements :–
- Input,
- Processing,
- Output,
- Feedback/Control.
After explaining the above various components, it can be said that managerial information system refers to the system of an enterprise by which adequate and correct information is made available on time for different management levels of the enterprise.
According to Doctor. N. K. Kul Shrestha, “By managerial information system, we mean that systematic approach by which the right information in sufficient quantity and right at the right time is provided to the right person in the organization structure, so that that person is man, material, machine and money.”
According to Jerome Kenter, “managerial information system is the system by which the functions of management, such as planning, controlling, decision-making, are helped in execution. is provided.
According to S. Chopra, “Managerial Information System is a process of communication in which information is collected and maintained.
“According to the Chartered Institute of Management Accountants London, Management Information System is a system in which defined data is collected, processed and communicated in order to assist the people responsible for using the resources. . “
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