Various Advantages of Information Management Systems
When information systems are designed to provide information needed for effective decision making by managers, they are called management information systems. MIS is a formal system for providing management with accurate and timely information necessary for decision making.
The system provides
information on the past, present and project future and on relevant
events inside and outside the organization . It may be defined as a
planned and integrated system for gathering relevant data, converting
it in to right information and supplying the same to the concerned executives.
The main purpose of MIS is to provide the right information to the right
people at the right time.
A management information system is an integrated man machine systems that provides information to support the planning and control function of manager in an organization .
· The out
put of an MIS is information that sub serves managerial functions. When
a system provides information to persons who are not managers, then
it will not be considered as part of an MIS . For .example , an organization
often process a lot of data which it is required by law to furnish to
various government regulatory agencies. Such a system, while it may
have interfaces with an MIS, would not be a part of it, Instances of
such systems are salary disclosures and excise duty statements. By the
same token to sophisticated computer aided design system for
engineering purposes would also not be a part of an MIS.
Generally, MIS is concerned with planning and control. Often there are elaborate systems for information that assists operations. For example, the car manufacturer will have a system for providing information to the workers on the shop floor about the job that needs to be done on a particular batch of material. There may be route sheets, which accompany the rate materials and components in their movement through various machines. This system per se provides only information to support operation. It has no managerial decision-making significance. It I not part of an MIS. If, however, the system does provided information on productivity, machine utilization or rejection rates, then we would say that the system is part of an MIS.
· Generally MIS has all the ingredients that are employed in providing information support to manager to making planning and control decisions. Managers often use historical data on an organizations activities as well as current status data make planning and control decisions. Such data comes from a data base which is contained in files maintained by the organization . This data base is an essential component of an MIS. Manual procedures that are used to collect and process information and computer hardware are obvious ingredients of an MIS . These also form part of the MIS. In summary , when we say that an MIS is an integrated man machine systems that provided information to supports the planning and control function of managers in an origination . It does the following function .
- sub serves managerial
Effective management information systems are needed by all business organization because of the increased complexity and rate of change of todays business environment . For Example, Marketing manager need information about sales performance and trends, financial manger returns, production managers needs information analyzing resources requirement and worker productivity and personnel manager require information concerning employee compensation and professional development. Thus, effective management information systems must be developed to provide modern managers with the specific marketing , financial, production and personnel information products they required to support their decision making responsibilities .
An MIS provides the following advantages.
1. It Facilitates planning : MIS improves the quality of plants by providing relevant information for sound decision making . Due to increase in the size and complexity of organizations, managers have lost personal contact with the scene of operations.
2. In Minimizes information overload : MIS change the larger amount of data in to summarized form and there by avoids the confusion which may arise when managers are flooded with detailed facts.
3. MIS Encourages Decentralization : Decentralization of authority is possibly when there is a system for monitoring operations at lower levels. MIS is successfully used for measuring performance and making necessary change in the organizational plans and procedures.
4. It brings Co ordination : MIS facilities integration of specialized activities by keeping each department aware of the problem and requirements of other departments. It connects all decision centers in the organization .
5. It makes control easier : MIS serves as a link between managerial planning and control. It improves the ability of management to evaluate and improve performance . The used computers has increased the data processing and storage capabilities and reduced the cost .
6. MIS assembles, process , stores , Retrieves , evaluates and Disseminates the information .
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