Introduction to MIS: Data vs Information, System Concept, MIS Meaning, Objectives and Characteristics Questions

Question 1

Define data.

Accepted Answer

**Data** are raw facts and figures that are not processed into meaningful form.

Question 2

Define information.

Accepted Answer

**Information** is processed and organized data that is meaningful and useful for decision making.

Question 3

What is MIS?

Accepted Answer

**MIS (Management Information System)** is a system that collects, processes and provides information to managers for **planning, control and decision making**.

Question 4

State any one element of a system.

Accepted Answer

Example: **Input** (data/resources entering the system).

Question 5

What is feedback in a system?

Accepted Answer

**Feedback** is information about system performance used to correct deviations and improve output.

Question 6

State the meaning of 'Garbage In, Garbage Out'.

Accepted Answer

It means **poor input data** leads to **poor output information**.

Question 7

Differentiate between data and information (any three points).

Accepted Answer

Data vs Information:
- **Data** are raw facts; **Information** is processed and meaningful.
- Data is input for processing; information supports **decision making**.
- Data is unorganized; information is organized/summarized.

Example: Data = daily sales numbers; Information = weekly sales trend report.

Question 8

Explain the elements of a system (any three).

Accepted Answer

Elements of a system (any three):
- **Input**: resources/data entering the system.
- **Process**: activities that convert inputs into outputs.
- **Output**: final product/result/information.
- **Feedback**: performance information for correction.
- **Control**: standards and rules to guide the system.

(Write any three with brief explanation.)

Question 9

State the objectives of MIS (any three).

Accepted Answer

Objectives of MIS (any three):
- provide **timely and accurate information** to managers
- support **planning** and forecasting
- support **control** by comparing actual vs standard
- improve coordination and communication across departments
- reduce uncertainty in decision making

Question 10

Explain characteristics of a good MIS (any three).

Accepted Answer

Characteristics of good MIS (any three):
- **Accurate** and reliable output
- **Timely** availability of reports
- **Relevant** to user’s decision needs
- **Complete** and consistent data
- **Secure** and user-friendly

(Write any three.)

Question 11

Explain the statement: ‘MIS provides right information to the right person at the right time’ (any three points).

Accepted Answer

The statement means MIS should ensure:
- **Right information**: relevant and accurate information (not extra/irrelevant data).
- **Right person**: the correct manager/user gets it (top/middle/operational level).
- **Right time**: timely delivery before decisions are made.
- **Right format**: easy-to-understand reports (tables/charts) for quick action.

Hence, MIS improves decision quality by delivering appropriate information efficiently.

Question 12

Explain how MIS supports planning and control (any three points).

Accepted Answer

MIS supports **planning and control** by:
- providing **forecasting** and trend reports for setting targets and budgets.
- giving **standard vs actual** performance reports to identify deviations.
- enabling timely **corrective action** through exception reports.
- improving coordination across departments for aligned plans.

Thus, MIS links planning with continuous monitoring and control.

Question 13

Explain MIS and how it supports managerial decision making with a flowchart.

Accepted Answer

### **MIS and Decision Making**

**MIS** provides managers with **right information** to take better decisions in planning and control. It reduces uncertainty by giving timely reports, summaries and comparisons.

How MIS supports decisions:
- provides **reports** (sales, cost, inventory)
- shows **trends** and summaries
- compares **actual vs budget/standard**
- improves coordination between departments

```text
Data collection → Processing → Storage → Reports/Information → Decision → Feedback/Control
```

Thus, MIS helps managers take faster and more accurate decisions at operational, tactical and strategic levels.

Question 14

Differentiate between open system and closed system with a table and examples.

Accepted Answer

### **Open System vs Closed System**

| Basis | **Open system** | **Closed system** |
|---|---|---|
| Interaction | interacts with environment | minimal/no interaction |
| Nature | realistic and common | mostly theoretical |
| Example | business organization | a sealed/isolated system (conceptual) |

```text
Open system: Input ↔ Environment ↔ Output (with feedback)
Closed system: Input → Process → Output (little outside influence)
```

Therefore, businesses are treated as **open systems** in MIS because they continuously interact with customers, suppliers, government and technology.

Question 15

Explain limitations/challenges of MIS implementation with a table/flowchart.

Accepted Answer

### **Limitations/Challenges of MIS Implementation**

MIS can improve decision making, but implementation faces challenges.

| Challenge | Explanation |
|---|---|
| **Cost** | high setup and maintenance cost |
| **Resistance to change** | employees may not accept new system |
| **Data quality** | wrong data leads to wrong reports (**GIGO**) |
| **Training needs** | users need skills and training |
| **Security risk** | unauthorized access, data leakage |

```text
Poor data / low user adoption / weak security → weak MIS output → wrong decisions
```

Hence, successful MIS needs good data governance, training, security and change management.

Introduction to MIS: Data vs Information, System Concept, MIS Meaning, Objectives and Characteristics

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