IMPACT OF THE MANAGEMENT INFORMATION SYSTEM
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 become more efficient. The tracking and monitoring of 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 an action or a decision in the matter. 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 analysis, saving the manager’s 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 in the communication and a similar understanding of an event in the organization.
The MIS calls for systematization of the business operations for effective system design. This leads to streaming of the operations which complicates the system design. It improves the administration of the business by bringing a discipline in its operations as everybody is required to follow and use systems and procedures. This process brings a high degree of professionalism in 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 of the management. It helps him to resort to such exercises as experimentation and modeling. 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 lot of manpower is engaged in this activity in the organization. Seventy (70) percent of the time is spent in recording, searching, processing and communicating. This MIS has a direct impact on this overhead. It creates information –based working culture in the organization.
