7 Categories of Management Information System

May 28, 2021 | Carver Stephen | Free Courses

7 Categories of Management Information System

Management Information System is a type of information system that collects, stores and processes data to provide information to the management. In simpler terms, any system of information that can be used by business management is a type of Management Information System or MIS. The role of Management information systems in businesses is very crucial, and without it businesses can be hard to run, especially large businesses. 

Management Information System
Management Information System

Large businesses need a different approach as compared to smaller ones. They require proper tools and techniques to prosper. Management Information System is a must-have for such businesses. There are many opportunities in this area of expertise. This tells us the reason behind the increased demand for Management Information System degrees.

Categories of management Information System (MIS):

There are different types of businesses. Management information systems are categorized based on the unique requirements of each business. In the following section, we will explain the different types of Management information systems.

Process control system:

The process control system is a type of MIS that collects data about a procedure. Every piece of information related to that particular process is stored there. The process control system notes the number of materials, timing, wastage, and everything else. If an error occurs, the management refers to this system to inquire about the incident. The manager frequently checks this system to maintain smooth working and to avoid mistakes.

The process control system is used in industries commonly for complicated large-scale procedures.

Process Control System
Process Control System

Inventory control system:

It is an important category of Management Information System. It keeps track of the products made, sold, and required. In addition, it gives an idea about which products are required in access. Large businesses need an Inventory control system to update their management about customer demand. The manager analyzes the situation and orders the correct number of raw materials.

Every large business requires an Inventory control system.

Inventory Control System:
Inventory Control System:

Sales and Marketing information system:

Proper marketing and sales are important tasks to run a business. Sales and marketing information systems look after the sales made by the firm. It also notes the marketing needs to make more sales. The manager gets the idea about the company’s drawbacks and acts accordingly. 

Human resource information system:

As the name implies, this system takes notice of the needs of the employees. All the things that are required by the staff to work efficiently like chairs, internet, devices, multimedia, etc. All of this falls under this information system. Moreover, it also keeps check of the employees’ hiring and vacation days. This system looks after the people so that they can work peacefully to increase the output of the company. 

A Human Resource manager is someone who looks after these needs and performs the required action.

Accounting and finance system:

Accounting and finance deal with all the information related to money. The investments, the tax deduction, the profits, and the losses. It maintains all this data and makes proper records. It also keeps the information about daily transactions, the company’s shares, and paychecks. This system is very important since proper financing is the key root to maintain a successful business. 

People in finance and accounting management make use of this information system. They check for any discrepancy in the bank statements. Through this, they can also catch fraudulent people. 

Accounting And Finance System
Accounting And Finance System

Management reporting system:

This type of Management Information System looks after the management itself. It collects and records the previous data of the different managers. Mostly, managers use information through this system and generate reports on their daily goals and activities. 

Moreover, the company’s top-rated managers use this information to look after their subordinate managers. They also compare the previous and present progress of the company to check the overall performance.

Decision support system:

As the name suggests, this system helps with the information needed to make a decision. It has the necessary information from other types of information systems to help with the decisions. It mainly helps the upper managers in the daily challenges they face.


Without a doubt, Management Information System plays a vital role in a successful business. It helps in the proper running of the business. It also keeps track of all the necessary information that might be useful in the future. So for running your business effectively, it’s very important that you take MIS courses or hire people with a degree in this field.