Question

Discuss the structure of management information system

Answer 1

MIS helps organization in their functioning. MIS record, process and tabulate all business transaction which helps organization to refer to the relevant data and to make improvements in the business transaction where the organization feels that they are lacking behind. (Moorty, 2009)

For example the organization can compare actual and projected sales and can take necessary steps to improve their sales performance. (Moorty, 2009)

MIS helps the top management of an organization in good decision making. It also helps the top management to evaluate whether the allocated resources have been properly utilized and whether the targets are been met by each department.

It helps to facilitate a two way communication process in an organization. (Moorty, 2009). The top management communicates to employees what is expected from them and employees discuss their problems to their top management. Therefore MIS ensure an effective communication in an organization.

Facilitates planning and controlling

MIS provides relevant information from the top management to people working as staffs in an organization. It helps the top management to facilitate proper planning of organizational activities by providing relevant data of past and present. MIS integrates all information and ensures that each department is aware of the problems and requirements of another department and thus leads to co-ordination in an organization. (management-hub.com)

Relevant Information

MIS only provides relevant data by compressing the huge amount of data which helps management in quick decision making.

Fast reaction to market changes

MIS provides facts, data and trends which help organization to react immediately accordingly to the changes happening in the market. (Pirraglia, 2010)

Competitive advantages

Today Competition is very strong in any industries. It is important for an organization to identify their competitive advantage in order to differentiate them in the market. MIS provides huge amount of data to management which help them to identify their competitive advantage and to make strategies to enhance their competitive advantages through their decisions. (Pirraglia, 2010)

MIS=Management Information System