Management information system is software that helps the middle level managers in large organizations and the top level managers in the small organization to make decisions. Data for the management information system is got through shared databases from the other systems in the network. This raw data that is got from the other databases is given to the middle level managers in a form that helps them to plan, organize, and to take decisions regarding the ongoing processes in the company.

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The raw data that is got from the other databases are processed by the predefined set of rules and then given to the top management to help them make important decisions. Unprocessed data is given to the middle level managers at the shop floor levels to process it further and take decisions. In very large organizations there are decision support systems for this. But in the small and medium organization, where an MIS is in place, the MIS helps them to take decisions. In very large organizations a separate department for MIS is available since they will be processing lots of data, for example the payroll processing and the purchase order processing.

You should know that MIS is a support system for the decision makers in an organization. It would generate the necessary reports, statements, needed for regular monitoring of the processes / activities in an organization. Scenarios can be simulated and reports can be generated for a particular scenario. For example, you might increase the cost of a component in a product and see how it affects the overall cost of the end product. Such simulations would help the management to plan the inventory and other things required to keep them competitive. There are many types of MIS in an organization.

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