Characteristics of management information system and their limitation and objectives

Characteristics of management information system

In today’s rapidly changing business environment, organizations face the task of managing vast amounts of data from multiple sources effectively. To address this need, Management Information Systems (MIS) have emerged as important tools that provide managers with valuable information to make well-informed choices. An MIS is a computerized system that gathers, processes, saves, and presents data from different organizational areas. This piece discusses the essential characteristics of Management Information Systems and their significant role in enabling decision-making and ensuring efficient operations within a company.

Characteristics-of-management-information-system

(a) Management-oriented: The system is built from the top down. It does not mean that the method is meant to provide information straight to the top leaders. Other levels of management are also given important information. For example, in a business information system, tasks such as sales order handling, shipment of goods to customers, and bills for the goods are generally operating and control actions.

This information can also be kept by a salesperson to know the sales area, size of order, geography, and product line. The system has been developed properly. However, if the method is created keeping in mind the top management, then information on external Competition, market, and price can be used to identify the market share of the company’s product and to serve as the basis for a new product or marketplace introduction.

(b) Management-directed: Because of the management focus of MIS, It is significant that management actively direct the system’s growth and efforts. In order to ensure the effectiveness of the method developed, Management should continuously perform reviews. For example, in marketing information technology, the management must decide what sales Information is significant to improve its control over marketing activities.

(c) Integrated: The word ‘integration’ means that the system has to cover all the functional parts of a company to produce more meaningful management information with a view to meeting the goals of the organization. It has to consider different sub-systems, their goals and information needs, and the connections that these sub-systems have amongst themselves so that shared areas of information are recognized and handled without repeating or overlapping. For example, in the creation of an efficient output scheduling system,

A product mix among the following factors is desired:


(i) set-up costs

(ii) manpower

(iii) overtime

(iv) production capacity

(v) quantity level

(vi) money available

(vii) customer service.

(d)Common data flows: Because of the unification idea of MIS, common The data flow idea saves repetition and overlapping in data collection and storage by joining similar tasks and simplifying processes wherever possible. For example, in marketing processes, orders made for Goods become the source of the billing of goods bought and the setting up of the accounts receivable, starting production action, sales research, forecasts, etc.

(e) Heavy planning element: A management information system cannot be established overnight. It takes almost 2 to 4 years to build it successfully in an organization. Hence, long-term planning is needed for MIS development in order to meet the future goals and objectives of the organization.

The creator of an information system should, therefore, ensure that it will not become outdated before it actually gets into action. An example of such a trait of MIS may be seen in a transportation system, where a highway is built not to handle today’s traffic requirements but to handle the traffic five to ten years hence.

(f)Flexibility and ease of use: While building a MIS system, all possible ways that may occur in the future are added to make it adjustable. A trait that often goes with freedom is ease of use. The MIS should be able to incorporate all those features that make it easily available to a wide range of people with easy usage.

In addition to the above traits, there are a few other important factors to consider when designing and operating a MIS. These include:


Flexibility: The MIS should be flexible enough to react to changes in the organization’s needs.

Security: The MIS should be safe to protect the security of the organization’s data.

Usability: The MIS should be easy to use by managers at all levels of the company.

Cost-effectiveness: The MIS should be cost-effective to create and operate.

By considering these factors, organizations can create and implement MIS that will provide them with the information they need to make effective choices.

There are a few other things that are significant to consider when designing and operating a MIS. These include:

The organization’s size and complexity
The organization’s industry
The organization’s budget
The organization’s IT system

It is also essential to know that MIS is constantly changing. As new technologies appear, MIS must be updated to take advantage of these new powers.
If you are considering adopting a MIS, it is essential to work with a skilled IT consultant. They can help you assess your organization’s needs and build a strategy that is right for you.

Management Information Systems are indispensable tools for modern companies, enabling effective decision-making and efficient operations. Their characteristics, such as data collection and processing, information presentation, decision support, integration, timeliness, accessibility, flexibility, security, efficiency, forecasting, support for different management levels, and feedback mechanisms, make them invaluable assets for businesses. As companies continue to evolve and face new challenges, an agile and well-implemented MIS will remain a key differentiator, allowing them to stay successful in an ever-changing business environment.

Objectives of management information system

The objectives of Management Information System (MIS) are to provide timely, relevant, accurate, and useful information to support decision-making and overall organizational efficiency. Here are the main objectives of a Management Information System.A successful MIS has the following objectives:

(a) Facilitate the decision-making process by giving facts in the proper time frame. This helps the decision-maker pick the best course of action.
(b) Provide the necessary knowledge at each level of management to carry out their functions.
(c) Help in identifying the critical factors to be closely watched for the successful functioning of the company.
(d) Support decision-making in both organized and uncontrolled problem environments.
(e) Provide a system of people, computers, processes, and interactive queries. Facilities and papers for collecting, saving, retrieving, and transmitting information to the users.

Overall, the primary objectives of management information system are to provide decision-makers with the right information at the right time, enabling them to make informed choices that lead to efficient and effective management of the organization.

Limitations of management information system

Overall, MIS is a powerful tool that can help organizations improve their decision-making and operations. However, it is important to be aware of the limitations of management information system in order to mitigate the risks and maximize the benefits. Here are some of the limitations of management information systems

Limitations-of-management-information-system

(1) MIS cannot replace management decisions in decision-making. It is merely an effective tool for management in decision-making and problem handling.

(2) The quality of output from MIS is directly related to the quality of input and methods.

(3) MIS cannot provide tailor-made information sets. It is necessary to analyze the available facts before making decisions.

(4) In a fast-changing and complex setting, MIS may not have enough flexibility to update itself quickly.

(5) MIS takes only numeric factors into account.

(6) MIS is less useful for making non-programmed choices.

(7) MIS is less successful in organizations where knowledge is not shared with others.

(8) MIS is less efficient due to frequent changes in top management. Organizational structure and working staff.

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