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THE EFFECT OF MANAGEMNET INFORMATION SYSTEM

Management Information System Effect on various functions of an Organization

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THE EFFECT OF MANAGEMNET INFORMATION SYSTEM
Management Information system (MIS) is a set of various interrelated elements of an

organization that are computer based and are integrated manually or through other procedures in

order to collect, store, process and communicate management level information to support

various organizational functions including planning, decision making, controlling, and

coordination between various departments, functions and elements. In any successful

organization, the management information system has a central position and has great impact on

various components such as executive level decision making, the support level of an organization

and on its production capabilities (Hosack, 2006).

Executive Level Decision Making

Management information system has simplified the process of decision making at every

level, however, the advantages of this system are great for the executive level managers in

making decisions. As the purpose of the MIS is to gather, store, process and

communicate/analyze the data of the entire organization, therefore, executives of an organization

can easily get an access to their required information from any department for making a decision.

The data stored and disseminated in the MIS is authentic and accessible, which has reduced the

decision making time while has increased its effectiveness. Sometimes, executives need to make

a quick decision about a serious issue regarding production, sales or finance. The presence of an

updated and effective management information system has made it easy for the executive level

managers to quickly retrieve required data. Data can be easily and quickly interpreted to make a

final and effective decision (Sarngadharan & Minimol, 2010).

Effect of MIS on the support levels of an Organization

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THE EFFECT OF MANAGEMNET INFORMATION SYSTEM
The support levels of an organization are its various departments that together support

carious functions of an organization to achieve its goals. Various support levels of an

organization include finance, human resource, marketing and sales, etc.… For example, the

human resource department/level of an organization support the organization in accessing

required workforce from the market, whereas the finance level will support an organization in

fulfilling the monetary needs of the organization in achieving its goals. An effective management

information system made it easy for the top management of an organization to measure the

contribution of each support level in the overall performance of the company/organization. The

management of each department can become more efficient, productive and supportive by

properly monitoring functional targets of each department. The system also helps managers to

access various tools of effective management to increase their efficiency (Hosack, 2006).

Effect of MIS on the production, distribution and sales of a product

The management information system is providing a central server for the organization to

link and manage all the various departments of the organization. The production department is

the most critical department in an organization, which has a direct relation with distribution and

sales departments. The performance of the three is contributing actively to the success of an

organization. A management information system link together the internal and external

capabilities and environment of an organization as well as is linking those components to the

central database. By doing so, an MIS can forecast sales; profit and cost for the coming period

and can communicate it with the production department to plan and control the entire setup. In

this regard, the MIS controls the entire setup of the supply chain of an organization to collect

production, distribution and sales data on a daily basis to make important decisions regarding

these departments (Sarngadharan & Minimol, 2010).

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THE EFFECT OF MANAGEMNET INFORMATION SYSTEM

References

Hosack, B. (2006). Computerized decision support of value-based decision-making

[electronic resource].

Sarngadharan, M., & Minimol, M. (2010). Management information system. Mumbai

[India]: Himalaya Pub. House.