MIS in Business Organization – Every business has an accountant who prepares monthly profit and loss statements and a balance sheet. That’s a good start. But, it’s not enough for a business owner to adequately manage a company. The importance of MIS in a business organization is that every business owner needs a system. Show
that provides data about the current activities of the company. Think about the gauges in the dashboard of your car. The importance of MIS in a business organizations is similar, to a series of gauges sitting on your desk. They report the crucial financial metrics about the performance of the business. They let you see in an instant if the business is operating as expected. The MIS definition includes those gauges. Why Is the MIS Important?At the beginning of the year, you have some idea of where you want the business to go. You set up goals for sales, establish product profit margins, and figure out . how much credit the company will need from the banks, create performance standards, and so on. Now, the job is to guide the business down the road toward achieving those objectives. An MIS system provides the reports that allow you to keep the business on the road. If sales are not meeting monthly projections, you have a meeting with the sales manager. If a few accounts receivable go 90 days past due, you get the finance director on the phone. A report shows that raw materials in a product have gone up. so you go to the production floor to talk with the area supervisor. The purpose of the MIS system is to set performance How Is the MIS System Applied?standards and alert the business owner to deviations from those objectives in time to take corrective actions. An effective management information system identifies and collect data on all the important metrics of the operations of a company. For example, the MIS provides data on sales, customer profitability and on the degree of market penetration. Supervisors and employees receive reports about productivity, the number of sick days taken and payroll budgets. This data is used to evaluate employee performance and to find who is due for a raise. Manufacturing supervisors are kept informed with product cost analysis, scheduling plans and raw materials inventory levels. The MIS system helps planners coordinate sales with production schedules. A management information system helps a company become more competitive. It reports and identifies what is working and what is not. These reports give owners the information they need to make decisions and improve the performance of their employees and the business. It will be an important moment for the owner. when the IT people install the hardware and software for the MIS, meaning that he now has better control of the business. Role of MIS in Business Organisation
How MIS helps in Business Organisation
Importance of MIS in Business Organization
Impact of MIS
Goal of MIS
MIS in Business OrganizationSince, the MIS work on the basic system such as transaction processing and database, the drudgery of the clerical work is transferr to the computerized system, relieving the human mind for better work. The importance of MIS in business organization observe 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. It goes without saying that all managerial functions are performe through decision-making; for taking rational decision, timely and reliable information is essential and is procure 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 business organization, in order to service and grow, must have a properly planned, analysed, 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 assume all the more important role in today environment because a manager has to take decisions under two main challenges. First, because of the liberalization and globalization, in which organizations are require 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. Ø 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 equippe 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 considere to be of permanent importance, sometimes regarded as the name centre of an organization. Such 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 planne for analyse, designe, implemente or is poorly maintaine 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 planning, designing, implementing, and maintaining 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. From the above, we have learned the importance of MIS in business organizations. If you want to become a successful MIS join our MIS training course. How information systems help organizations achieve their goals?Information systems assist in disseminating information by allowing managers and other organization leaders to store data in folders and documents that can be seamlessly shared with the appropriate employees.
How do successful businesses use information systems to achieve their strategic business objectives?At the business level of strategy, information systems can be used to help firms become the low-cost producers, differentiate products and services, or serve new markets. Information systems can also be used to lock in customers and suppliers using efficient customer response and supply chain management applications.
How can an information system help an organization make effective decisions?Management information system provides knowledge about the relative position of the organization and basic forces at work. It provides the right information needed in decision making process and help the organizations control, planning and operational functions to be carried out effectively (Reddy, 2090).
How information system is helpful to business organization?Store and Analyse Information
Most information systems function as delivery vehicles for data stored in databases. Databases support the operations and management aspects of a business. With a database, the collected data is stored and organised. Examples of databases include employee records and product catalogues.
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