Tanishq jewellers wants to set up MIS in their organisation in order to manage the information better across the organisation. Can you guide them about the same along with the characteristics, components,advantages and limitations?
Answers
Answer:
1. Management Information System in an Organization
Management information system (MIS) is a collection of integrated systems, both manual and computerized that provide an organization’s decision-makers with information concerning operational activities. As tanishq Jewellers want to set up an MIS in their organization, they will be enabled with activity support which will occur through efficient data processing and effective information supply to relevant people within the specified time.
Explanation:
(a) Characteristics of Management Information System (M.I.S.).
• System Method
• In favour of the future
• Incorporated
. Consistent with the organisational needs and desires
• Shared data flows
• Appropriate association of sub-system scheduling
• Long-term development
To help the organization manage the information better, MIS consists of five major components that must work together to achieve the organization’s objectives. These components include:
Ø People; these are the users such as the ICT department staff, accountants and human resource managers who operate the information system to perform daily transactions.
Ø Business procedures; these are best practices guiding users on how to work efficiently.
Ø Data; these entail the daily recorded business transactions and information collected from different operational activities.
Ø Hardware; it consists of computers, networking devices and printers which provide the computing power, printing capabilities and networking for data processing.
Ø Software; refers to programs running on the hardware and it consists of system software such as the operating system and application software such as banking system.
Components of Marketing Information System
In-house records
Marketing research
Marketing decision support systems
Marketing intelligence systems
(b) Advantages of Management Information System.
1. It supports the different data necessities of executives and the whole organization, despite the significant decision-makers.
2. MIS can also form better communication flow by sealing the data gaps and motivating efficiency.
While MIS has an essential role in an organization, it has generic characteristics which must be considered before its adoption. These characteristics are:
Ø System approach; In which the information systems should follow a holistic approach and consider its performance in the light of the constituted objectives.
Ø Management oriented; MIS must follow a top-down approach which suggests that the development should start from the determination of management needs.
Ø Need-based; this dictates that the development should be according to the manager’s information needs at different levels and cater for specific needs.
Ø Future oriented; the MIS should provide information based on future projections and the actions to be initiated.
Ø Central database; as MIS requires access to master files, it is important to gather data once, process properly and store in a central database where it can be accessed by other subsystems.
(b) Advantages of Management Information System.
1. It supports the different data necessities of executives and the whole organization, despite the significant decision-makers.
2. MIS can also form better communication flow by sealing the data gaps and motivating efficiency.
A good MIS can not only be used for data storage but also supports management analysis therefore providing several advantages to the organization. Some of these benefits are:
1. Increases customer satisfaction ensuring operational excellence.
2. Enhances acquisition of sufficient and quality information.
3. Improves operational flexibility and efficiency.
Limitations of Management Information System
• Greatly sensitive data necessitates continuous monitoring.
• Accounting of MIS exceedingly challenging.
• The quality of efforts administers the quality of productions.
• Lack of tractability to bring up to date.
• Efficiency declines because of regular changes within the top administration.
Managers can get feedback concerning their business performance and cement customer relations.
Ø Improves decision-making process which models business products and services to profits the organization.
Nevertheless, the implementation of MIS can have limitations such as:
Ø High cost; where the development of information systems can be costly due to technological changes which require regular upgrades.
Ø Maintenance; when problems arise and the system crashes it might lead to information loss.
Ø Employee training; as it is difficult to stay relevant in the market with unskilled employees, they need to be trained on how to use the information system at the expense of the organization.
Answer:
The 3 alphabets MIS stand for management, information, system.
The basic objective of MIS is to plan, initiate, organize and control and provides
information on the decision. It helps in decision making process but putting the information
on a proper time table. MIS is integrated software and hardware technology data process
and human Alimentation.
Management information and system is a process that helps execute and looks on the
information to support its decision making. It is an integrated user machine system to
provide information and support the management analysis. The system uses computer
hardware and computer software, manual processes., analysis on the plan, control and a
good data base. It was well said by Zwass 1992” A management information system is an
organised portfolio of formal systems for obtaining the processing and delivering
information in support of the business operations and management of an organization. “ The
main objectives of MIS are also defined in its definition but instead there are other
objectives that have to be covered:
Process the data: the data captured then is kept for processing the required information.
Sorting, classifying, and Summarisation of the data.
Information storage: retrieving of information is done from the store by various users.
Capturing of data: internal or external both kind of data are sourced through this in the
organisation. Data can be can go through computers or manual form.
Final information: it is the finished product of MIS. It can be done by an online process or
a computer terminal.
Characteristics of MIS
• Management goals: while making of MIS top-down approach should be followed. It
should cover an overall business plan.
• Requirement based: the MIS program should always be based on the requirements.
Planning strategy, control over management, operational level.
• Futuristic: program should work in such a way that it caters not only the present for
but all the projections of the future.
• Long term plans: MIS planners and designers should always take care that the
future needs of the company.
There are some advantages that I would like to mention here:
1. enhanced planning quality
2. enhanced controlled quality and it's supervision
3. increased and improved response from the number of competitor’s condition.
4. Better management decisions
5. Improved storage of data quantity and quality.
Components of MIS:
People who record their day-to-day transactions related to business. There is always an IT
staff that regulates the work.
The recorded data from the daily transactions and activities regarding all the bank
transactions
Hardware like printers, networking, helps in computing of data. These hardware helps the
working of the data.
The software programs that run on the hardware and the software is broken down into
categories
Limitations:
• It requires continuous Surveillance and monitoring
• MIS budget is difficult
• Change in the Efficacy in top management
• Lack of flexibility.
• Ignores non quantitative factors and only considers qualitative factors.
• Changes in the top management decreases the effectiveness