What are the basic elements of management information systems (MIS)? Also, discuss the limitations of MIS.

Management Information System (MIS) is an organized approach to study the information needs of an organization's management at every level in making operational, tactical, and strategic decisions. The three elements of MIS are Management, Information and System. It is necessary to understand these three components: Management may be thought of as the sum total of these activities which relate to the laying down of certain plans, policies and purposes, securing men, money, materials and machinery needed for their goal achievements; putting all of them into operation, checking their performance and providing material rewards and mental satisfaction to the men engaged in the operation. Information is a source for increment in knowledge. In MIS, it is obtained by processing data in to a form meaningful to the users. A system is a set of components that operate together to achieve a common objective or multiple objectives. These objectives are realized in the outputs of the system. An efficient system uses its inputs economically in producing its outputs. An effective system produces the outputs that best meet the objectives of the system. MIS can be thought of as a system (set of hardware, software, manpower, procedures, etc.) to provide timely and accurate information to the management users in an organization. Major limitations of Management Information Systems (MIS) are given as under: Quality of the outputs of MIS is basically governed by the quality of inputs and processes. MIS is not a substitute for effective management. It means that it cannot replace managerial judgement in making decisions in different functional areas. It is merely an important tool in the hands of executives for decision-making and problem solving. MIS may not have requisite flexibility to quickly update itself with the changing needs of time, especially in the fast changing and complex environment. MIS cannot provide tailor made information packages suitable for the purpose of every type of decisions made by executives. MIS takes into account mainly quantitative factors; thus it ignores non-quantitative factors like morale, attitudes of members of the organization, which have an important bearing on decision-making process of executives. MIS is less useful for making non-programmed decision-making. Such type of decisions is not of routine type and thus they require information, which may not be available from existing MIS to executives. The effectiveness of MIS is reduced in the organization, where the culture is to hold information and not share with others. MIS effectiveness decreases due to frequent changes in top management organizational structure and operational team. Non-availability of experts, who can diagnose fully the objectives of the organization and give a desired direction needed for operating information system. Difficulty usually faced by experts, in selecting the sub-systems of MIS, to be designed and operated upon first. Turnover of experts is also quite high. Source of availability of experts for running MIS effectively, is not always known to management. Due to varied objectives of business concerns, the approach adopted by experts for designing and implementing MIS is non-standardized one. Non-availability of heavy financial resources required for running the MIS effectively. It is difficult to quantify the benefits of MIS, so that it can be easily comparable with cost. Perception problems as its utility are not readily perceptible by many users.