MIS can give right information at right time to right people
Management information system provides information needed for managers in making effective decisions. The system provides information on the present, past and future projects. We can define information system as a planned and integrated system to collect information, convert it into effective data and supplying it to concerned managers. Right information at right time to right people is the purpose of management information system.
Management information system is used for managerial planning, decision making and management control functions. The system is mostly used by managers at middle level and lower level. The main reason behind this is that the structured and semi structured decisions are often taken at the middle and lower level management. The system enables management to spot current trends in the business and get an overview of their present business.
What are the advantages of management information system, or MIS? The system improves the quality of work done in an organization by providing relevant information at proper time. So we can say management system facilitates proper planning. MIS summarizes large amount of data. This helps managers to get right data from the detailed facts, thereby avoiding confusions.
Another advantage of MIS is that it encourages decentralization. MIS is a good tool to measure the performance and making necessary changes in the performance of a company. As this system can be used for monitoring performance at constant intervals, decentralization is possible. Another advantage of MIS is that it brings coordination among departments. By coordinating different functions, MIS improves the ability of management to evaluate and improve the performance. Altogether, we can say MIS gathers, process, stores, evaluates and supplies information.
Areas where MIS is applicable?
Human Resource Management - the application of MIS in managing people includes, collecting details of the various activities of different employees working in so many departments of an organization. The system also collects details regarding new hiring, training programs, and work force analysis and job assignments. In all ways, MIS plays a key role in ensuring the success of the organization.
Marketing management information systems – In the marketing department, MIS provides valuable information right from marketing research to real-time marketing. A marketing manager can receive information related to advertisement, consumer behavior, market segmentation, product demand, list of marketing items, types of marketing strategy, sales forecast etc. So MIS can provide the overall scenario of the market.
Manufacturing management information systems – Major role of MIS in the manufacturing sector includes, collecting details of inputs needed for manufacturing products, designing and scheduling of production, data related to manufacturing process and final output. In the manufacturing information system, one of the major program on which production relies on is inventory control programs. Inventory control program is designed is such a way that it can forecast production, record items required for production, find out manufacturing cost and develop production plans.
Another program that coordinates the production process is Manufacturing Requirements Planning or MRP. This program determines resources needed to complete a production and coordinate the manufacturing process in an effective way to meet the deadlines.
Financial management information system – this system coordinates financial and operation information of an organization. It gives information regarding payroll, inventory, order processing, and accounts payable and general ledger. This helps in compiling annual reports and financial statements. So the main functions of financial MIS are costing, profit/loss reporting, auditing and fund management. The management information system also helps in the financial analysis from different aspects like time, customer and product. Such type of data makes it possible to compare the performance of competitors. Just like television, connected to providers like Dish TV Packages, that relays different programs according to different taste of people, MIS is applicable in different departments of an organization.
Annphilip - About Author:
Ann is a management student. She likes to write about management and its various applications. She is also interested in writing about nature and different living creatures. As a nature lover, she watches programs related to animals on her home television powered by Dish TV Packages.
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