Management Information systems
Management requires complete information relating to a problem or issue at the right time in order to make decision making effective. The proper collection, handling and providing of the right information to the right managers at the right time not only reduces the risk of wrong decisions but also works as an effective controlling technique. Complexities involved in business and economic activities and voluminous government regulations create the need for supply of right information to the right manager at the right time.
Management Information System (MIS) is defined as â€œa formal method of making available to management accurate and timely information necessary to facilitate the decision-making process and enable the organizationâ€™s planning, control and operational functions to be carried out effectively. The system provides information on the past, present and projected future and on relevant events inside and outside the organization.â€?
Generally, an organizationâ€™s MIS consists of a series of information systems of varying degrees of complexity, competence and scope. They are:
1.Transaction processing and inquiry response;
2.Management information for operational planning, decision-making and control;
3.Management information for tactical planning and decision-making; and
4.Management information system for strategic planning and policy planning and decision-making.
An organizationâ€™s information system must provide the various types of information required by managers at the various levels of organizational hierarchy with different levels of operational responsibilities, operational control, management control and strategic planning.
To build a customer based information systems, a new product and service industry has developed to supply the tools necessary. While a large number of people are employed to design and operate information system, many more individuals are involved as users or â€œconsumersâ€? of information systems. Users include individuals from a broad spectrum of occupations ranging from workers in a factory to the top management of a corporation. Use of an information system includes the receipt of a report, the submission of input for a system and the operation of a terminal or a similar activity. Most individuals encounter these systems in other activities, in addition to work experiences with computer based information systems. Credit and users of a band, travelers making reservations and many other confront computer based systems directly or indirectly.
In todayâ€™s complex society, knowledge of computer based information systems is vital for an educated individual, particularly for the professional manager. It has been estimated that 1/3rd or Â½ of the gross national income of the US is currently attributed to the production and distribution of information. This trend is a departure from traditional economy based on the production and distribution of tangible goods. This clearly shows that we are entering â€œInformation Ageâ€? For most organizations in the future if the determining factor in competition will be the processing and analyzing of information.
An information system is a set of organized processes which when executed, provides information to support decision-making. Information can be defined as a tangible or intangible entity which serves to reduce uncertainty about some future state.
A representation of an information system is shown above. Data is processed in some way, collected and summarized to produce output which is interpreted as information by the user decision-maker.
Formal organizations from the stage of their inception, requires information systems in order to operate successfully. Deposits, advances, economic development, financial, personnel and external data on consumers and markets are vital to the successful operation of most modern banks