Impact of MIS
The impact of MIS on the functions is in its management. With good MIS support, the management of marketing, finance, production and personnel becomes more efficient, and the tracking and monitoring of the functional targets become easy. The functional managers are informed about the progress, achievements and shortfalls in the activity and the targets. The manager is kept alert by providing certain information indicating the probable trends in the various aspects of the business. This helps in forecasting and long-term perspective planning. The manager's” attention is brought to a situation which is exceptional in nature, inducing him to take any action or a decision in the matter. A disciplined information reporting system creates a structured database and a knowledge base for all the people in the organization. The information is available in such a form that it can be used straight away or by blending and analysing, saving the manager valuable time.
The MIS creates another impact in the organization which relates to the understanding of the business itself. The MIS begins with the definition of a data entity and its attributes. It uses a dictionary of data, entity and attributes, respectively, designed for information generation in the organization. Since all the information systems use the dictionary, there is a common understanding of terms and terminology in the organization bringing clarity to the communication and a similar understanding of an event in the organization.
The MIS calls for the systemization of the business operations for an effective system design. This leads to streamlining of the operations which complicates the system design. It improves the administration of the business by bringing a discipline to its operations everybody is required to follow and use systems and procedures. This process brings a high degree of professionalism to business operations.
Since the goals and objectives of the MIS are the products of business goals and objectives, it helps indirectly to pull the entire organization in one direction towards the corporate goals and objectives by providing the relevant information to the people in the organization.
A well-designed system with a focus on the manager makes an impact on managerial efficiency. The fund of information motivates an enlightened manager to use a variety of tools for management. It helps him to resort to such exercises as experimentation and modelling. The use of computers enables him to use the tools and techniques which are impossible to use manually. The ready-made packages make this task simpler. The impact is on the managerial ability to perform. It improves the decision-making ability considerably.
MIS plays a very important role in the organization; it creates an impact on the organization’s functions, performance and productivity.
The impact of MIS on the functions is in its management with a good MIS supports the management of marketing, finance, production and personnel to become more efficient. The tracking and monitoring of the functional targets become easy. The functional managers are informed about the progress, achievements and shortfalls in the activity and the targets. The manager is kept alert by providing certain information indicating and probable trends in the various aspects of the business. This helps in forecasting and long-term perspective planning. The manager’s attention is bought to a situation which is expected in nature, inducing him to take any action or a decision in the matter. A disciplined information reporting system creates a structured database and a knowledge base for all the people in the organization. The information is available in such a form that it can be used straight away by blending and analysing, saving the manager valuable time.
The MIS creates another impact in the organization which relates to the understanding of the business itself. The MIS begins with the definition of data, entity and its attributes. It uses a dictionary of data, entity and attributes, respectively, designed for information generation in the organization. Since all the information systems use the dictionary, there is a common understanding of terms and terminology in the organization bringing clarity to the communication and a similar understanding of an event in the organization.
The MIS calls for the systematization of the business operations for an effective system design. This leads to streaming of the operations which complicates the system design. It improves the administration of the business by bringing discipline to its operations as everybody is required to follow and use systems and procedures. This process brings a high degree of professionalism to business operations.
The goals and objectives of the MIS are the products of business goals and objectives. It helps indirectly to pull the entire organization in one direction towards the corporate goals and objectives by providing the relevant information to the organization.
A well-designed system with a focus on the manager makes an impact on managerial efficiency. The fund of information motivates an enlightened manager to use a variety of tools for management. It helps him to resort to such exercises as experimentation and modelling. The use of computers enables him to use the tools and techniques which are impossible to use manually. The ready-made packages make this task simple. The impact is on the managerial ability to perform. It improves decision-making ability considerably high.
Since, the MIS work on the basic system such as transaction processing and database, the drudgery of the clerical work is transferred to the computerized system, relieving the human mind for better work. It will be observed that a lot of manpower is engaged in this activity in the organization. Seventy per cent of the time is spent in recording, searching, processing and communicating. This MIS has a direct impact on this overhead. It creates an information-based working culture in the organization.
Importance of MIS
It goes without saying that all managerial functions are performed through decision-making; for taking a rational decision, timely and reliable information is essential and is procured through a logical and well-structured method of information collecting, processing and disseminating to decision-makers. Such a method in the field of management is widely known as MIS. In today’s world of ever-increasing complexities of business as well as a business organization, to service and grow, must have a properly planned, analyzed, designed and maintained MIS so that it provides timely, reliable and useful information to enable the management to take speedy and rational decisions.
First, because of the liberalization and globalization, in which organizations are required to compete not locally but globally, a manager has to take quick decisions, otherwise, his business will be taken away by his competitors. This has further enhanced the necessity for such a system.
Second, in this information age wherein information is doubling up every two or three years, a manager has to process a large voluminous data; failing which he may end up taking a strong decision that may prove to be very costly to the company.
In such a situation managers must be equipped with some tools or a system, which can assist them in their challenging role of decision-making. It is because of the above-cited reasons, that today MIS is considered to be of permanent importance, sometimes regarded as the name centre of an organization. Such systems assist decision-makers in organizations by providing information at various stages of decision-making and thus greatly help the organizations to achieve their predetermined goals and objectives.
On the other hand, the MIS which is not adequately planned for analyzed, designed, implemented or is poorly maintained may provide developed inaccurate, irrelevant or obsolete information which may prove fatal for the organization. In other words, organizations today just cannot survive and grow without proper planning, designing, implementing and maintaining MIS. It has been well understood that MIS enables even small organizations to more than offset the economies of scale enjoyed by their bigger competitors and thus helps in providing a competitive edge over other organizations.
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