IMPORTANCE OF MIS

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, in order 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.

MIS has assumed all the more important role in today’s environment because a manager has to take decisions under two main challenges:

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 center of an organization. Such a system assists 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 properly planned, designed, implemented and maintained 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.