ASSIGNMENT 2

MANAGEMENT INFORMATION SYSTEM

Submitted By:

Roll No. 55,

5th Semester,
Department of IT

1
TOPIC:

Management Reporting System and its

Evaluation

2
 Definition of Management Reporting System

A management reporting system is essentially a

mechanism for monitoring the ‘mission’ of an organization. In a formal
plan it is defined in terms of three distinct streams:
a) The desired organisation structure.
b) The time phased statements of organisational goals.
c) The critical variables for success.

To the extent that the formal plan is imprecise or

inadequate, failing to take into account the actuality of the real life
situation, the de facto points of decision making, and the personnel, the
monitoring system becomes open-ended and ineffective. Designers of
the reporting system must, therefore, take into account the impact on
it of such constraints.
It is true that only a good management reporting system
will not make a company successful. It is the people in the organisation
that make for corporate success. Yet, lacking of proper management
reporting system will degrade the performance of the company since
management at various levels will have no way of registering their
accomplishments in relation to targets, or of taking remedial actions.

Need for MIS Reports

1. Provides data: One of the important functions of the

management accountant is to keep the management informed of all the
facts relating to the business to assist the management in the effective
management of the business. The effectiveness of the information
depends upon on its proper reporting.
2. Aid to managers : The growth of size of business
requires the delegation of authority to various levels of management.
Therefore, there arises need of control, co-ordination and

3
communication. Without MRS, the managers, working at different
levels in the organization, cannot carry out the function of planning,
controlling and decision making effectively.

3. Basis of decision : It is through MRS reports that the

management is able to get a full insight into the entire operative activity
of the concern. The MRS reports are basis for the management to make
decisions.

4. Take informed decisions : The main objective of MRS

reporting revolves around two points: reporting the management about
the progress in terms of performance, enable the management to take
clear and accurate decisions.

Benefits of Management Reporting System

Earlier the equity system was used for management reporting

of any organization. The set of reports provided with the Equity system
was changed and added many times as the system evolved. As a result,
inconsistencies had crept in, and the information was not always reliable.
There was a need to revamp the reports completely, and as such with
the advent of technology the use of the new Reporting System became
indispensable.
Management Reporting System offers the following advantages:

• Consistency of data
• Reliability of calculations
• Flexibility for users

Consistency and Reliability:

4
 The new reporting system uses the same formulas for
report calculations. For example, in the old reports, margin was
calculated in several different ways, some accurate and some not.
Extensive testing both at head office and in pilot stores ensures that
the information contained in the reports is reliable and correct.

Ease of Use:

The system comes with a comprehensive set of standard

reports that will meet most needs. Most stores will not need to create
customized reports. The reports are easy to schedule and run.

Flexibility:

For stores that want additional information, they have

the ability to create customized reports to meet their individual needs.
This includes:
• adding and deleting columns on the reports
• specifying the sort sequence
• Subtotaling and grouping
• specifying selection criteria so they can zero in on your area
of
interest (such as including only inactive products, products on
a
Specific deal and so on).

****************************************************************

Reference Used:
1. B. Stanford, ‘Management Information System- a new
perspective’, Newman Publishing House.
Page No.-391-397

5
 2. P.Mohan, ‘Management information system’, Himalaya
Publishing
Page No.-29-31
2. www.scribd.com
3. www.wikipedia.com
4. www.accessmylibrary.com

**************************************************************