What Are the Benefits of a Management Information System?

by Cora Lauderdale; Updated September 26, 2017
Managing Information

Management information systems were developed in the 1960s. Management information system describes a company and its resources. MIS allows managers to create reports about the company activities. Company activities can be products produced or sold, services, inventory, business partners and people. MIS keeps company information and resources organized.

Management information system uses a two system approach where computers (information systems) are used to make company reports and managers use the reports to make decisions about the company. MIS helps managers control, organize and plan how company resources will be used. MIS allows managers to send and receive information about daily activities of a company.

Management information system uses an input output routine to achieve its company goal. The company's input process can be internal or external. The internal information are the databases and computer information. The external information are customers, suppliers, businesses and competitors. MIS uses the data to make reports on how the company is performing to make a profit, be successful or forecast a future event. During the output process managers use data to monitor a company. MIS makes reports so managers can make decisions about a company schedule, payroll, specific company activities or general needs of a company.

Financial MIS

Financial MIS creates reports about a company past and present money activities. The Financial MIS can show a companies profit and losses, financial records about a company that states how the company is doing, decisions on spending and how a company can control cost.

Manufacturing MIS

Manufacturing MIS monitors and control the flow of materials, products and services of a company. Raw goods that are processed are monitored by Manufacturing MIS. This helps Manufacturing MIS control and reduce costs of products and services.

Marketing MIS

Marketing MIS handles product creations, sales, prices, advertisements and future business decisions. Marketing MIS makes decisions on product and service appearance. Marketing MIS manages customer contacts, makes questionnaires for customer feedback about their company product or service and tracks customer spending habits.

Human Resource MIS

Human Resource MIS manages employees and selection of employees. Human resource MIS looks at needs of the employees, the workforce rules, the hiring process, training, and job assignments. The company's Human resource MIS is in charge of payroll and medical care for its employees.

Benefits

Management information system helps companies keep track of its resources and stay organized. MIS allows managers to make different types of reports about a company activities. Managers can print a report that show a companies daily activities, how products or sold or services being used and use reports to make future business decisions.

About the Author

Cora Lauderdale has worked as a public school teacher for nine years. Her background is in technology. For the past few months Lauderdale has been a writer for Demand Media and enjoys her new craft.

Photo Credits

  • Image by Flickr.com, courtesy of Kevin Dooley