-Management Information System

Management requires complete reliable information to solve any problem and exercise effective control by taking a timely decision. The complete reliable information is received by proper collection, handling and providing the right information to the right person in the time. The proper management information system it not only reduces the risk of wrong decisions but also work as an effective controlling techniques. Managers at every level require important information with speed, brevity and economy in order to discharge their functions effectively.

Due to complexity of business and industrial operations, the management information system (MIS) gets more importance. Government regulations are also to create the need of supply of more reliable information accurately within short span of time. This clearly shows that the management executives are entering into an Information Age.

Management Information System is a planned, organized and systematic collection of relevant, accurate, precise and timely information which are properly processed and supplied to required persons economically for the purpose of achieving organizational objectives. The term management information system also designates a specific category of information systems serving the middle management. Management information systems provide middle managers with reports on the organizations current performance. Management information systems summarizes and reports on the companys basic operations using data supplied by transaction processing systems. Management information system serves managers primarily interested in weekly, monthly and yearly results although some MIS enable managers to drill down to see daily or hourly data if required. MIS generally provides answers to routine questions that have been specified in advance and have a predefined procedure for answering them. For instance, MIS reports might list the total pounds of lettuce used this quarter by fast-food chain or compare total annual sales figures for specific products to planned targets. These systems generally are not flexible and have little analytical capability. Most MIS use simple routines, such as summaries and comparisons, as opposed to sophisticated mathematical models or statistical techniques.

 -Objectives of Management Information System

An effective Management Information System can achieve the following objectives:

1. Facilitates Decision Making

Management executives at all levels are taking large number of decisions by receiving the best possible current information. Accurate, reliable, precise and timely information facilitates the decision making process very easy.

2. Avoid Duplication of Work

Major portion of the organizational operations are computerized and procedures are simplified. This type of system reduces unnecessary work and eliminates the performance of duplication of work.

3. Savings and Time

Efficient methods are applied in the execution of assigned activities and proper direction is available to the employees of an organization. Standard time is fixed for each work separately. In this way there is possibility of saving time.

4. Establish Uniform Procedures

Nature of work is different from one department to another department or one section to another section, but standard and uniform procedure is followed in the performance of a work. Uniform procedures ensure proper flow of data from the concerned department of section.

5. Fixing Responsibility
Data have to be supplied immediately after execution of work. Hence, it is the responsibility of concerned executive to provide data. In this way, MIS fixes responsibility to each executive.

6. Improving Service
Necessary training is to be imparted to the executives before installing Management Information System. Hence improved service is rendered by the executives in an organization.

The Management Information System should be flexible in nature to incorporate revisions and include additional sub-systems in order to achieve above mentioned objectives.

Improving Service

Facilitate DecisionMaking

Fixing Responsibility

MIS

Avoid Duplication of work

Savings Establish Uniform Procedures Of Time

 -Elements of The Management Information System

The term The Management Information System consists of three words. They are Management, Information and System. If one understands the meaning and nature of these words, properly, he can have thorough understanding regarding the concept - The Management Information System.

Management Management is the process of planning, organizing and controlling of the physical and human resources in order to achieve the objective of an organization. Managers can prepare the plan in order to achieve the objectives by selecting best course of action. He can indefinitely task who are emerged under the operation of an organization and organize them into homogenous groups. The completion of the task is to be controlled by setting performance standards and avoid deviations from such standards. In this place management facilitates the executives for taking number of valued decisions with regard to planning, organizing and controlling the performance of task and functions of the business.

Information Information can be defined as tangible or intangible facts which are used to reduce or avoid uncertainty of future events. Information is necessary to every management to plan and control the business operations effectively.

Information is derived from the data out of the available data; information is developed and used for decision making purpose. There must be a proper transformation of data into information. The presentation of information in such a way that is current and in a readily usable and easily understood format.

System A system can be defined as a set of interrelated elements working towards for achieving general objectives of an organization. There may be many sub-systems in an organization and all such systems are parts of large systems. There is a need of application of principles of system in a business

organization. If so, there is a possibility of integration of the sub-systems through information inter proper change. The system concept of MIS is therefore one of optimizing the output of the organization by connecting the operating sub-systems through the medium of information exchange.

Management

Elements of MIS

System

Information

 Importance of Management Information System

An effective management information system is very important on account of the following reasons. 1. Complexity of business operations: The business operations will be changed into complexity due to dynamics of the environment. The MIS helps the managers in this situation, to look upon the business operations without much difficulty. 2. Size of business unit: Most of the business units have grown in size. This results in management being removed from the scene of the operations. Now, MIS plays in vital role to solve operational problems. 3. Changes in economic structure: Rate of inflation and unemployment, changes in interest rate GNP and the like are affecting the smooth functioning of a business unit. Hence this type of information should be collected and helps the managers to take a valid decision. 4. Technological Changes: These include changes in the operations of a business unit. Whenever there is a change in technology, there is a problem to the management. This type of problem can be easily solved with the help of effective MIS. 5. Social Changes These include higher level of education, changes in consumer tastes, usage of computer at home, preferences of job etc. this type of information is maintained upto date. If so, running of a business unit is very easy. 6. Determination of training needs In large scale enterprise, the operations are decentralized so that more information is needed about the operations units. The performance of all units should be closely watched and steps must be taken if there is a poor performance of units. It means that training needs can be found out in order to improve the performance of units. Here MIS can be effectively used for measuring performance and decide the training needs for better performance and achieve organizational goals and plans.

7. Wide use of computer The computers are widely used since the operation requires less expense and have more capacity to store and supply information. This has made information handling easier.

-Factors Affecting the Management Information System

There must be free flow information from one place to another place within organization. If so, every employee knows what is happening in an organization and tries to change its activities. Even though, some factors are affecting the free flow of information. They are listed below:

1. Availability Availability of information refers to more accurate or inaccurate and relevant information. All decisions are made out of available information. If decisions are made out of inadequate, inaccurate and irrelevant information, the results are highly uncertain. But, there is no parameter available to access the information as accurate or inaccurate, relevant or irrelevant and adequate or inadequate. Hence, the managers are forced to take decisions out of available information.

2. Quality: Quality of information describes its compactness and accuracy. Sound decisions are taken only out of quality information. Accordingly the information should be precise and highly reliable. 3. Quantity Too much information cannot be processed very easily by the management within stipulated time and difficult to get accurate information. On the other hand, too little information may leave relevant, reliable and accurate information which are necessary to take useful decisions. 4. Timelines: Information must be available when needed. Sometimes, some important decisions can be delayed due to non-availability of necessary information properly in time

and the results missed opportunities. At the time the time gap between the collection of data and the presentation of the proposed information should be reduced as much as possible. Besides, the information should be presented before the decision-maker when needed and not on a periodic and cyclic basis.

Factors Affecting Management Information System

Availablity

Quality

Quanitity

Timelines

-Process of Management Information System

The transformation from data to information involves six stages. These six stages have been briefly explained below: 1. Assembling It means finding and collection of data and recorded in a set of files. The well defined sources of information facilitated the collection of data. 2. Processing It means that the data has been summarized, edited and processed. During editing, the irrelevant and inaccurate data have been eliminated from the records.

3. Analyzing It means that the data has been analyzed to develop or calculate percentages, ratio, etc. Percentages and ratios are providing useful information to the decision-maker. 4. Storage and Retrieval: Indexing, coding, filling and location of information are coming under the process of storage. Provisions have been made to quick relocation of such information and retrieval when it is necessary.

Assembli ng

Processin g

Analyzin g

Storage and Rterieval

Evaluatio n

Dissemination

5. Evaluation It means the determinations of usefulness of information in terms accuracy, precise and relevance. The degree of accuracy, precise and relevance is based upon the needs of the decision-maker. 6. Dissemination It means supplying the required information in the specified format at the right time to the decision maker.

-Advantages of Management Information System

The effective Management Information System contributes in the following ways to the management:

1. Facilitates Planning Planning requires reliable, relevant and accurate information. These are po9ssible under the effective management information system. The MIS keeps the executives

aware of changes in the environment of business. In this way, MIS facilitates the planning function carried out by executives.

2. Reduce Information Overload All the data collected by an organization is not required by managers. Under effective MIS, the data has been divided into relevant data and irrelevant data. The irrelevant data may create confusion in the minds of managers. Hence, the irrelevant data has been avoided with the help of effective MIS and reduced information overload.

3. Simplifies Control MIS is acting as a bridge between planning and control. It helps the managers to take a sound decision which simplifies control function.

4. Assists Co-ordination MIS is an integrated approach to planning and control. MIS facilitates coordination by keeping each department aware of the problem, Status importance and needs of other departments. It links all decision centers in an organization.

5. Improves Decentralization Monitoring work is also done under the effective MIS. This type of arrangement helps the management to delegate authority without losing control.

-Causes for Poor Management Information System

Management Information System is to make an effective effort with the help of computer capabilities. Even though, there may be some causes for poor management information system. They are given below: 1. More information is Better Effective or sound decision can be taken only out of more information. This is fallacy. But, the real fact is that only relevant, accurate and precise information is enough for effective data and not more. Generally more information will over burden the decision-maker and even create confusion. This process may lead the decision-maker into an unwanted place.

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Besides he cannot be able to absorb all information. Hence, mere accurate and relevant information is not enough. 2. Lack of managerial involvement Effective MIS requires top management support. Moreover, the decisionmaker has to be encouraged so that MIS has been properly utilized. If not so, no use following Management Information System. 3. Poor Communication The managers must be provided with relevant current information. Then, the manager should be trained to recognize the basic nature and utility of computer. The computer specialist must design a system in which every decision-maker is going to use the computer to avail better communication. But, in practice, the computer is used for generating data and results for poor communication. 4. Computer cannot do Everything Computer can process the data and provide at the information in a specified format. But, it does not compensate managerial judgment. Besides, computer be used as a tool and not a substitute of decision-maker. 5. Human Acceptance The success of MIS depends upon the acceptance and involvement of employees of the concerned organization. Generally, the employees can oppose the MOS because the system may increase the workload or decrease the importance of human being.

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