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The business at present operates under an environment which is more difficult and
complex as compared to earlier times. The growth of size of business has necessitated the
delegation of authority at various levels of management. There are problems of control,
co-ordination and communication. The decision-making has become a difficult task. The
decisions gave wider ramifications for the business and a wrong decision may then lead
to its closure. Management needs full information before taking any decisions. Good
decisions can minimize costs and optimize returns. Management Information System
(MIS) can be helpful to the management in undertaking managerial functions smoothly
and effectively. It is an approach of providing timely, adequate and accurate information
to the right person in the organization which helps him in taking right decisions. So,
management information system is a planned and organized approach to the transferring
of intelligence within an organization for the organization of management. The
information is furnished into useful quantum of knowledge in the form of reports.

 


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An effective system of MIS collects data from all possible sources. The information is
properly processed and stored for stored for use in future. The following are the elements
of MIS:

(1)?The first element of MIS is the determining of informational needs. What type of
information will be required and what will be its sources etc.? when these
questions are decided then it will be possible to decide the modus operandi for
collecting the required data, etc.
(2)?The collected information should be properly processed, sorted and stored.
(3)?Another element of MIS is to determine the time and quantum of information
needed. The information is sen6t to the desired managerial levels within the
specified time.
 (4)?MIS also involves the process of measuring the adequacy of purpose served. If the
information has not been sufficient and desired purpose has not been served then
the base of collecting it should be enlarged or modified.


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Management information system is of two types:

?
   This system is meant for meeting the
information needs of lower and middle level management. The information
supplied generally relates to operations of the business. The figures about
finance, raw materials, labour, production, sales, etc; are supplied to the
concer4ned persons. The operational information is required to see the pace of
work and made necessary changes, if needed. The supply of information is
quick and regular. The use of electronic devices is made for processing and
analyzing data.
£?
   This system is designed to supply
information to top level management for decision-taking. The information is
presented in a way which enables the management to take quick decisions.
Sometimes, comparative information is pre3sented to see the present
performance in relation to past one. The purpose of this information is to
present before management the real position of the enterprise. The supply of
this information is slow because information from various sources is first
 compiled. Decision-making requires full information about all important areas
of the enterprise.

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The installation of management information system requires the following steps:

?  The introduction of MIS requires a proper study of business

objective, plans, policies, etc. It will enable in deciding the type of data required,
its sources and the levels at which required. The organizational structure should
be able to supply the required information. The organizational levels, authorities,
responsibilities, etc. should be studied for this purpose. The success of MIS will
depend upon the support of top level management. The management should also
be able to supply the requisite finances.
£?  The informational needs of top, middle and lower levels of
management should be studied so that the system is planned accordingly. The
functions of each level of management should also be studied. The questions like,
what data is needed? When is it needed? Who needs it and; in what form is it
needed? Should be studied for making the system effective.
º? c MIS can effectively be applied only when every person in the
organization is involved in it. The persons should also be given training for
implementing this system. Information system manuals should be prepared to
devise procedure for it. The manual and mechanical devices necessary for
processing data should also be selected. Standard proformas, etc. should also be
decided for collecting information. The main emphasis should be on the
involvement of all persons in the organization.
è?  ! The review of the system is very essential. The problems and difficulties
faced in the system and additional requirements should be pointed ort. The review
of MIS will enable us to spot the week spots and a corrective action will make the
system more effective. It should be determined whether the information supplied
was sufficient or not? Was the information relevant and critical? Was the
frequency of reporting justified? The answers to these questions will help in
making changes in the system. Without a proper review, the system will cease to
be effective and useful after some time. It should constantly be reviewed with the
change in situation in the business.