Information is needed in virtually every field, thought and action. But besides being
essential to individuals who use it do achieve personal ends; information is also needed by
managers in organizations. Manages at all levels must perform such basic tasks as staffing,
directing and controlling. The success of any business is determined by the success of its
managers in performing their activities. Activities in turn are being affected by the excellence in
decision-making. The blood pool of better decisions is information decision making must be
supported by quality information.
In short, quality information leads to better decisions enhance better managerial activates
and, effective managerial performance leads to organizational effectiveness. It is MIS which is
the supplier of information to the managers. Hence, the role of MIS is very important in every
organization.
The analysis, design and implementation of MIS are more expensive and difficult. Even
though expensive it is justified for several reasons:
1.Timeliness: Managers make decisions more quickly and take less time to solve the problems
and give satisfactory solutions to the management.
2.Accuracy: Normally the organizations are in position to provide variety of regular reports. For
the increased government regulations. Also the organizations have variety of customers,
requires variety of reports. These reports are organizations by the management accurately
with the effective MIS.
3.Reduction in inventory levels: With affective MIS the inventory levels can be maintained at
an optimum level which results into cost reduction.
4.Better liquidity: MIS provides for better liquidity by justifying account receivable, cash flow
or living systems.
5.Better work allocation: MIS ensures the better allocation of work by evaluating the benefits
of personnel allocation, maintenance control and production scheduling system. This results
into reduction in work hours which lead to monetary benefits to the firms.
6.Increase in sales: Through effective MIS, one can asses the profitability of distribution,
marketing, finished goods, inventory control, and customer order systems. This may result
into increase in sales.
7.Reduction in maintenance costs: MIS can be used as a measure for evaluating maintenance
control system and spare parts inventory control systems. It ensures reduction in maintenance
costs.
8.Completeness: In MIS, the system managers understand the management technique and the
procedures, so they are able to produce the complete reports of a system.
9.Accurate reports: The MIS has the ability to provide the complete and concise reports. For
example,
(a) Summary reports- Summaries all activities of the organization and present in the form of
summary report.
(b) Demand reports- This reports will be prepared only when they are requested by the
management.
(c) Customer reports- According to the specifications of the management it will be prepared.
(d) Exception reports- According to the conditions or exceptions the report is prepared.
(e) Responsibility-The MIS structure provides the boundaries of management responsibilities.
10) Other benefits: MIS provides the following other benefits.
(i) Ensures shorter response time.
(ii) Reduces the number of negative responses to customers.
(iii) Improves decision-making process.
(iv) Widens information bases for decision-making
(v) Facilitates data integration.
(vi) Simple and easy to understand.
(vii) Saves the precious time of managers.
(viii) Saves manpower.
(ix) Enhances the quality of decisions.
(x) Easy accessibility
(xi) Reduces data redundancy.
(xii) Improves productivity.
essential to individuals who use it do achieve personal ends; information is also needed by
managers in organizations. Manages at all levels must perform such basic tasks as staffing,
directing and controlling. The success of any business is determined by the success of its
managers in performing their activities. Activities in turn are being affected by the excellence in
decision-making. The blood pool of better decisions is information decision making must be
supported by quality information.
In short, quality information leads to better decisions enhance better managerial activates
and, effective managerial performance leads to organizational effectiveness. It is MIS which is
the supplier of information to the managers. Hence, the role of MIS is very important in every
organization.
The analysis, design and implementation of MIS are more expensive and difficult. Even
though expensive it is justified for several reasons:
1.Timeliness: Managers make decisions more quickly and take less time to solve the problems
and give satisfactory solutions to the management.
2.Accuracy: Normally the organizations are in position to provide variety of regular reports. For
the increased government regulations. Also the organizations have variety of customers,
requires variety of reports. These reports are organizations by the management accurately
with the effective MIS.
3.Reduction in inventory levels: With affective MIS the inventory levels can be maintained at
an optimum level which results into cost reduction.
4.Better liquidity: MIS provides for better liquidity by justifying account receivable, cash flow
or living systems.
5.Better work allocation: MIS ensures the better allocation of work by evaluating the benefits
of personnel allocation, maintenance control and production scheduling system. This results
into reduction in work hours which lead to monetary benefits to the firms.
6.Increase in sales: Through effective MIS, one can asses the profitability of distribution,
marketing, finished goods, inventory control, and customer order systems. This may result
into increase in sales.
7.Reduction in maintenance costs: MIS can be used as a measure for evaluating maintenance
control system and spare parts inventory control systems. It ensures reduction in maintenance
costs.
8.Completeness: In MIS, the system managers understand the management technique and the
procedures, so they are able to produce the complete reports of a system.
9.Accurate reports: The MIS has the ability to provide the complete and concise reports. For
example,
(a) Summary reports- Summaries all activities of the organization and present in the form of
summary report.
(b) Demand reports- This reports will be prepared only when they are requested by the
management.
(c) Customer reports- According to the specifications of the management it will be prepared.
(d) Exception reports- According to the conditions or exceptions the report is prepared.
(e) Responsibility-The MIS structure provides the boundaries of management responsibilities.
10) Other benefits: MIS provides the following other benefits.
(i) Ensures shorter response time.
(ii) Reduces the number of negative responses to customers.
(iii) Improves decision-making process.
(iv) Widens information bases for decision-making
(v) Facilitates data integration.
(vi) Simple and easy to understand.
(vii) Saves the precious time of managers.
(viii) Saves manpower.
(ix) Enhances the quality of decisions.
(x) Easy accessibility
(xi) Reduces data redundancy.
(xii) Improves productivity.
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