---
title: "Information support for functional areas"
subject: "Organization and Management"
chapter: 9
key: "semester_7/organization_and_management:information-support-functional-areas"
source: https://www.bctengineer.com/q/semester_7/organization_and_management/information-support-functional-areas
site: BCT Engineering
---

# Information support for functional areas

Organization and Management · Chapter 9: Management Information System

- Asked in: 2074 Chaitra, 8 marks; 2073 Shrawan, 4 marks; 2072 Kartik; 2070 Asar, 3+5 marks; 2070 Chaitra, 2+6 marks (asked 5 times)
- Answer checked by Claude Opus 5.5 (high effort) on 2026-10-14
- Page: https://www.bctengineer.com/q/semester_7/organization_and_management/information-support-functional-areas
- Whole chapter: https://www.bctengineer.com/md/semester_7/organization_and_management/chapter-9

## Question

Define Management Information System (MIS). Explain information support required in different functional areas of management.

## Short answer

MIS is an integrated computer-based system that collects, processes, stores, and distributes timely information for planning, control, and decision making. It supports marketing with sales and competitor data, production with schedules and quality reports, finance with budgets and cash flow, HR with payroll and skills, plus purchasing, R&D, and top management with strategic information.

## Answer

#### Management Information System (MIS)
MIS is an integrated, computer-based system that collects, processes, stores and distributes accurate and timely information to managers at different levels to help them in planning, controlling and decision making. It combines people, hardware, software, data and procedures.

```text
Data -> [Collect/Process/Store] -> Information -> Managers
                  ^                                  |
                  +------------- Feedback -----------+
```

#### Information support in functional areas
1. **Marketing:**
   - Customer demand, market size and trends.
   - Sales analysis by product and region, price comparison.
   - Competitor information, advertising results.
   - Example: a telecom company studying data usage and plan sales.
2. **Production/operations:**
   - Production schedules, inventory levels, machine utilisation.
   - Quality control reports, cost, plant maintenance.
   - Example: NEA's generation and outage data, load forecast.
3. **Finance and accounting:**
   - Budgets, cash flow, profitability, ratios.
   - Accounts receivable and payable, investment analysis.
   - Tax and audit reports (including Nepal Rastra Bank returns for banks).
4. **Human resources:**
   - Employee records, attendance, payroll.
   - Skill inventory, manpower planning, training needs and appraisal results.
5. **Purchasing/materials:**
   - Supplier performance, price lists, stock levels and reorder points.
6. **Research and development:**
   - Technology trends, project progress, patents.
7. **Top management/strategic planning:**
   - External environment, competitors, economic and legal changes, overall performance.

Good information support helps each function to be coordinated, to identify problems early and to make decisions with facts.

## Check yourself

The answer's key points as multiple-choice questions, with the correct option and why.

1. MIS is best defined as:
   A. A manual filing system
   B. An integrated computer-based system that collects, processes, stores and distributes accurate, timely information to managers
   C. Only a database of employees
   D. A social network
   Answer: B. It combines people, hardware, software, data and procedures for planning, control and decision making. (Key point: Definition of MIS)

2. Which information is needed in marketing?
   A. Payroll and attendance
   B. Customer demand, sales analysis, competitor information
   C. Machine utilisation
   D. Patent filings
   Answer: B. Marketing needs demand, trends, sales analysis and competitor data. (Key point: Marketing support)

3. Which is production/operations information?
   A. Production schedules, inventory levels, machine utilisation, quality reports
   B. Skill inventory
   C. Audit reports
   D. Competitor ads
   Answer: A. Production needs schedules, inventory, utilisation and quality data. (Key point: Production support)

4. Which belongs to HR?
   A. Cash flow ratios
   B. Supplier performance
   C. Employee records, payroll, skill inventory, training needs
   D. Technology trends
   Answer: C. HR information includes employee records, payroll and appraisal results. (Key point: HR support)

## Related in Organization and Management

- [Types of information systems; decision support](https://www.bctengineer.com/question.md?key=semester_7%2Forganization_and_management%3Amis-types-decision-making) — Organization and Management, chapter 9
- [MIS, website and role of computer](https://www.bctengineer.com/question.md?key=semester_7%2Forganization_and_management%3Amis-website-computer) — Organization and Management, chapter 9
- [Needs, functions and importance of MIS](https://www.bctengineer.com/question.md?key=semester_7%2Forganization_and_management%3Amis-needs-functions-importance) — Organization and Management, chapter 9, asked 3×
- [Define MIS and its types](https://www.bctengineer.com/question.md?key=semester_7%2Forganization_and_management%3Amis-types) — Organization and Management, chapter 9
- [Line and staff vs line and functional](https://www.bctengineer.com/question.md?key=semester_7%2Forganization_and_management%3Aline-staff-functional) — Organization and Management, chapter 5
- [Short note: Organizing information systems](https://www.bctengineer.com/question.md?key=semester_7%2Forganization_and_management%3Anote-organizing-information-systems) — Organization and Management, chapter 9

## Related in other subjects

- [MIS vs DSS information and processing](https://www.bctengineer.com/question.md?key=semester_8%2Finformation_system%3Amis-vs-dss-information-processing) — Information System, chapter 4
- [Project management information system](https://www.bctengineer.com/question.md?key=semester_7%2Fict_project_management%3Apmis) — ICT Project Management, chapter 7
- [Project management knowledge areas](https://www.bctengineer.com/question.md?key=semester_7%2Fict_project_management%3Apm-knowledge-areas) — ICT Project Management, chapter 2
- [Restaurant information system requirements](https://www.bctengineer.com/question.md?key=semester_5%2Fsoftware_engineering%3Arestaurant-requirements) — Software Engineering, chapter 1