MIS is set up by an organization with the prime objective to obtain management information to be used by its managers in decision-making. Thus, MIS must perform the following functions in order to meet its objectives.
1) Data Capturing:
MIS captures data from various internal and external sources of an organization. Data capturing may be manual or through computer terminals. End users, typically record data about transactions on some physical medium such as paper form or enter it directly into a computer system.
2) Processing of data:
The captured data is processed to convert it into the required management information. Processing of data is done by such activities as calculating, comparing, sorting, classifying and summarizing.
3) Storage of information:
MIS stores processed or unprocessed data for future use. If any information is not immediately required, it is saved as an organizational record. In this activity, data and information are retained in an organized manner for later use. Stored data is commonly organized into fields, records, files and databases.
4) Retrieval of information:
MIS retrieves information from its stores as and when required by various users. As per the requirements of the management users, the retrieved information is either disseminated as such or it is processed again to meet the exact demands.
5) Dissemination of MI:
Management information, which is a finished product of MIS, is disseminated to the users in the organization. It could be periodic, through reports or on-line through computer terminals.
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