Site Loader

A management
information system comprises computer-based processing and/or manual procedures
that provide useful, complete, and timely information. This information must
support management decision making in a rapidly changing business environment.
The MIS system must supply managers with accurate, quick and complete
information. Good decision making requires quality data and timely information;
an MIS is specifically designed to provide information on a timely basis.

Despite the
positives associated with the role of MIS in decision making process, there are
a few challenges that are believed to limit the efficacy of MIS. These include:
• The dynamic nature of MIS makes it difficult for some organizations to keep
up with the principles, strategies, propositions or even ideas. • Different
situations call for different decisions to be made. This poses challenges to
MIS theorists since some MIS tend to not be adaptable • The
institutionalization, programming, monitoring and evaluating MIS requires a lot
of expertise—something which numerous organizations lack. • The running of MIS
programs tends to be relatively costly for some organization— especially small
ones who are not well-endowed financially. • MIS is more of a science-oriented
field while business is art-oriented. Consequently, finding a middle ground
where the two can be linked is quite challenging to some people. • Most organizations
do not a well-defined decision making system. So even with the right MIS tools,
very little can be achieved in terms of improving decision-making. Based on
these limitations—plus other underlying issues that arise from the main
discussion, the following recommendations are suggested: • There should be an
increased monitoring of MIS so as to avoid falling victims of unobserved MIS
which has dire ramifications. • Managers and business owners should find a way
of tailoring information in a way that it fits various decision making
processes in variant businesses. • The management should encourage the
effectuation of a mutually interdependent and balanced MIS where workers and
automated systems are handled with due respect. • Business entities should find
a way inculcating teachings about new MIS in order to reduce the trend of
businesses being left behind on new inceptions. • A well-defined decision
making system should be fledged in businesses so as to provide a viable working
environment for MIS. A good place to start here would be the inception of a
centralized place where all decisions in businesses are channeled through •
Business managers must ensure that they employ (or alternatively outsource)
professional personnel who are able to ardently run both MIS and the decision
making process.

We Will Write a Custom Essay Specifically
For You For Only $13.90/page!


order now

MIS provide
reports to various managers among the middle and low level managers of the
organization. Especially, for middle level managers management information
system provides theorganizational performance reports, which in turn help
predicting the future performance of the organization 10. According to Nath
& Badgujar 13 management information system provides several benefits to
the business organization: to come out with appropriate responses to a business
situation; the means of effective and efficient coordination between different
departments at all the levels of the organization; access to relevant data and
documents; use of less labor; improvement in organizational and departmental
techniques; management of day-to day activities. Management information system
provides a valuable time-saving benefit to the employees. Employees do not have
to collect data manually for filing and analysis. Instead, that information can
be entered quickly and easily into a computer program. Access to the
information needed is faster. According to Babu & Sekhar 9 the Primary
purpose of management information system is to help an organization achieve its
goals by providing managers with insight into the regular operations of the
organization so that they can control, organize, and plan more effectively. In
addition management information system provide the right information to the
right person in the right format at the right time.

MIS is an
information system that provides information in the form of standardized
reports and displays for the managers. MIS is a broad class of information
systems designed to provide information needed for effective decision making.
Data and information created from an accounting information system and the
reports generated thereon are used to provide accurate, timely and relevant
information needed for effective decision making by managers. Management
information systems provide information to support management decision making,
with the following goals: · Pre-specified and preplanned reporting to managers. · Interactive and ad-hoc support for
decision making. · Critical information for top management. MIS is of vital
importance to any organization, because: · It emphasizes on the management decision making, not
only processing of data generated by business operations. · It emphasizes on the systems
framework that should be used for organizing information systems applications.

Management
information system can thus be analyzed as follows: Management Management
covers the planning, control, and administration of the operations of a
concern. The top management handles planning; the middle management
concentrates on controlling; and the lower management is concerned with actual
administration. Information Information, in MIS, means the processed data that
helps the management in planning, controlling and operations. Data means all
the facts arising out of the operations of the concern. Data is processed i.e. recorded,
summarized, compared and finally presented to the management in the form of MIS
report. System Data is processed into information with the help of a system. A
system is made up of inputs, processing, output and feedback or control. Thus
MIS means a system for processing data in order to give proper information to
the management for performing its functions. Definition Management Information
System or ‘MIS’ is a planned system of collecting, storing, and disseminating
data in the form of information needed to carry out the functions of
management. Objectives of MIS The goals of an MIS are to implement the
organizational structure and dynamics of the enterprise for the purpose of
managing the organization in a better way and capturing the potential of the
information system for competitive advantage. Following are the basic
objectives of an MIS: · Capturing Data: Capturing contextual data, or operational
information that will contribute in decision making from various internal and
external sources of organization. 6. MIS ? Introduction Management Information
System 12 · Processing Data: The captured data is processed into
information needed for planning, organizing, coordinating, directing and
controlling functionalities at strategic, tactical and operational level.
Processing data means: o making calculations with the data o sorting data o
classifying data and o summarizing data · Information Storage: Information or processed data
need to be stored for future use. · Information Retrieval: The system should be able to
retrieve this information from the storage as and when required by various
users. · Information Propagation: Information
or the finished product of the MIS should be circulated to its users
periodically using the organizational network. Characteristics of MIS Following
are the characteristics of an MIS: · It should be based on a long-term planning. · It should provide a holistic view of
the dynamics and the structure of the organization. · It should work as a complete and
comprehensive system covering all interconnecting sub-systems within the
organization. · It should be planned in a top-down way, as the decision
makers or the management should actively take part and provide clear direction
at the development stage of the MIS. · It should be based on need of strategic, operational
and tactical information of managers of an organization. · It should also take care of
exceptional situations by reporting such situations. · It should be able to make forecasts
and estimates, and generate advanced information, thus providing a competitive
advantage. Decision makers can take actions on the basis of such predictions. · It should create linkage between all
sub-systems within the organization, so that the decision makers can take the
right decision based on an integrated view. · It should allow easy flow of information through
various sub-systems, thus avoiding redundancy and duplicity of data. It should
simplify the operations with as much practicability as possible. · Although the MIS is an integrated,
complete system, it should be made in such a flexible way that it could be
easily split into smaller sub-systems as and when required. · A central database is the backbone
of a well-built MIS. Management Information System 13 Characteristics of
Computerized MIS Following are the characteristics of a well-designed
computerized MIS: · It should be able to process data accurately and with high
speed, using various techniques like operations research, simulation,
heuristics, etc. · It should be able to collect, organize, manipulate, and
update large amount of raw data of both related and unrelated nature, coming
from various internal and external sources at different periods of time. · It should provide real time
information on ongoing events without any delay. · It should support various output
formats and follow latest rules and regulations in practice. · It should provide organized and
relevant information for all levels of management: strategic, operational, and
tactical. · It should aim at extreme flexibility in data storage and
retrieval.

 

Post Author: admin

x

Hi!
I'm Rhonda!

Would you like to get a custom essay? How about receiving a customized one?

Check it out