Management Information Systems (MIS) employs the integration of information technology in achieving the needs and objectives of the general workforce, managers and their organization. The development of MIS in organizations helps corporate executives in applying efficient and effective information technology-based business and economic decisions. With new trends in information technology, managers and organizations will face more advance and flexible management of organizational information. Most organizations these days rely heavily on their IT systems.
MIS has become an integral part of the organization’s existence and application on several specific areas. These include strategy supports, data processing and job performance development. MIS transforms data into useful information to formulate effective management decisions. Data processing by MIS allows organization of enormous quantity of business data and provides valuable time-saving benefits for the organization. Job performance of the organization’s human resources is greatly affected with the establishment of an MIS. Employees will have more efficient and effective ways in handling data and information.
A functional MIS has five elements which include timeliness, accuracy, consistency, completeness and relevance. The efficacy of an MIS will be deterred whenever one or more elements are compromised. The element of timeliness signifies that an organization’s MIS can provide and distribute current information to its users. Processed information from MIS must be accurate and free from flaws. MIS consistency in handling data must be taken into consideration for well-defined, documented processes and ability to adapt with a dynamic environment. Management needs complete and related information in a summarized format to eliminate information overload. The MIS must be able to provide the management with relevant data for effective planning and decision making.
An MIS provides many benefits to the organization. Primarily, it facilitates organizational planning. MIS enhances the sound decision-making skills of the management by providing relevant information. Secondly, MIS minimizes information surplus by summarizing this in standard formats for managers to have detailed and concise reports. Thirdly, MIS facilities bring integration to an organization as it keeps other departments abreast with existing problems and needs. Lastly, MIS makes managerial control easier. This gives management the ability to assess and improve the organization’s performance.
Management risks show the likelihood of economic events that could negatively affect the operations or earnings of the organization. Management decisions based on erroneous, ineffective or imperfect MIS may boost the risks in specific areas such as commodity pricing, company’s liquidity, interest rates or foreign currency. A non-secure or poorly programmed MIS can result into hacking, data manipulation, unauthorized data access and routine work disruption that can result to incorrect management decisions or planning.
A reliable MIS plays an integral role in providing the management relevant and accurate information for efficient decision making. The current MIS must be able to adapt with the complexities of the organization toward information technology for well-guided decision making. All key personnel of the organization must be able to get acquainted with its MIS and ensure its reliability to generate pertinent information. The MIS should be able to mitigate risks emanating from both internal and external factors of the organizations.