Objective of Management Information System

29/03/2020 2 By indiafreenotes

An MIS is a system designed to provide selected decision oriented information needed by management to plan, control and evaluate the activities of the corporation. It is designed within a framework that emphasizes profit planning, performance planning and control at all levels.

A formal method of collecting timely information in a presentable form in order to facilitate effective decision making and implementation, in order to carryout organizational operations for the purpose of achieving the organizational goal.

Information processing beyond doubt is the dominant industry of the present century. Following factors states few common factors that reflect on the needs and objectives of the information processing:

  • Increasing impact of information processing for organizational decision making.
  • Dependency of services sector including banking, financial organization, health care, entertainment, tourism and travel, education and numerous others on information.
  • Changing employment scene world over, shifting base from manual agricultural to machine-based manufacturing and other industry related jobs.
  • Information revolution and the overall development scenario.
  • Growth of IT industry and its strategic importance.
  • Strong growth of information services fuelled by increasing competition and reduced product life cycle.
  • Need for sustainable development and quality life.
  • Improvement in communication and transportation brought in by use of information processing.
  • Use of information processing in reduction of energy consumption, reduction in pollution and a better ecological balance in future.
  • Use of information processing in land record managements, legal delivery system, educational institutions, natural resource planning, customer relation management and so on.
  • MIS is very useful for efficient and effective planning and control functions of the management. Management is the art of getting things done through others. MIS will be instrumental in getting the things done by providing quick and timely information to the management.
  • Reports give an idea about the performance of men, materials, machinery, money and management. Reports throw light on the utilization of resources employed in the organization.
  • MIS is helpful in controlling costs by giving information about idle time, labour turnover, wastages and losses and surplus capacity.
  • By making comparison of actual performance with the standard and budgeted performance, variances are brought to the notice of the management by MIS which can be corrected by taking remedial steps.
  • MIS brings to the notice of the management strength (i.e., strong points) of the organisation, to take advantage of the opportunities available.
  • MIS reports on production statistics regarding rejection, defective and spoilage and their effect on costs and quality of the products.