Importance of MIS (Management Information System) | Role of MIS

Importance of Management Information System (MIS) | Roles of Management Information System (MIS)

Importance of MIS (Management Information System)

 1) Satisfaction of needs

Management Information System (MIS) helps to define the diverse needs through variety of systems such as query system, analysis system, modeling system and decision support system. Through highly systematic and processed data from different system, satisfies the needs of various departments of the organization.

2) Effective Decision Making

Management information System plays crucial role in decision making sectors. Managers need to take decisions based on the data or information they acquire in various fields. MIS is essential in both personal and professional life. For proper functioning of organizational department, decision making is most crucial. In the competitive market, manager always needs to be more and more smart and take effective decisions. And to make effective decisions is the most important role in the organization, so doesn’t come up easily, it needs accurate data, information which is possible through MIS. It facilitates the better flow of information.

Through management information system data from various source is converted into a format for preparation of reports for helping decision making process through in depth analysis.

3) Enhance strategic planning

Planning is done early in the organization, so that it could be followed accordingly. As every organization makes long-term and short-term plans with the help of information like sales & production, capital investments, stocks etc, management can easily plan. Planning is the basic function of management in the organization. If planning is not effective, then further activities can’t be followed effectively and efficiently. So planning after acquiring data and information about further activities makes it effective. Hence MIS enhances strategic planning. MIS also helps low level management by providing operational data for planning, scheduling and control.

4) MIS helps management control, operational control and transaction processing

MIS plays role exactly as the role of heart in the body system. It plays the role of supplying pure blood to all the elements of the body including the brain. It supplies blood to the body parts which again has role of controlling, processing, acting accordingly and many more. The way heart plays role in controlling, processing, MIS plays similar role of management control, operational control and many more other activities.

5) Guides all level of management

MIS helps top level management in goal setting, strategic planning and evolving the business plans and their implementations. It also helps middle level management in short term planning, target setting and controlling the business functions. MIS adds intelligence, alertness, awareness to the managers by providing them information in the form of progress and review reports of an ongoing activity.

6) Determines integration

MIS defines how different components or subsystems are actually integrated in the organization. It show relationships between various components, which may be directly or indirectly connected with each other. For example MIS helps to show relations among different departments. It shows how they are linked up.

7) Enhanced Performance and efficiency

MIS helps the management to know deviations of actual performance from pre-set targets and control things. And controlled environment is always efficient to work. Management information system provides accurate and updated results to management using highly computerized systems.

8) Well structured Information Collection

Management Information System is the logical, well structured collection of information/data. These structured information are reliable for processing and disseminated to decision makers. It provides reliable, timely information essential in the management.