1. Be able to understand the impact of management information on decision making
Definitions of Management Information System:
“The study of MIS is not about the use of computers, it is about the provision and use of information relevant to the user. Computers are one - albeit important - means of producing information and concentration on the means of production rather than the needs of the user can lead to expensive mistakes." (Lucey  pg 195)
“A system to convert data from internal and external sources into information and to communicate that information, in an appropriate form, to managers at all levels in all functions to enable them to make timely and effective decisions for planning, directing and controlling the activities for which they are responsible.” (Lucey  pg 2).
MIS is a planned system of collecting, processing, storing and disseminating data in the form of information needed to carry out the functions of management. According to Phillip Kotler "A marketing information system consists of people, equipment, and procedures to gather, sort, analyze, evaluate, and distribute needed, timely, and accurate information to marketing decision makers." (Kotler, Phillip and Keller, Kevin Lane; Marketing Management, Pearson Education, 12 Ed, 2006)
According to Philip Kotler "A marketing information system consists of people, equipment, and procedures to gather, sort, analyze, evaluate, and distribute needed, timely, and accurate information to marketing decision makers."
MIS provides information to hold the “planning and control functions.” Every business organisation needs MIS as the complexity in the change of the environment is taking place in day-to-day business environment. It should be developed as, it helps organisation, to do specific marketing, well defined production of specific products, with good financial back ground. It also aids in decision making. It is “formal system” that provides the management take decision on time with accurate information. The major impacts of the management system are elaborated below:
Facilitate Planning: It mends the quality of a product by providing accurate information to make sound a decision, as the complexity, the source of the information varies in period of time. It also encourages the manager who has loss the personal contacts with the” scene of operation”.
Decreasing the over load: MIS summarises large amount of the data to avoid confusion when the information is over flooded.
Simulate the decentralization: It regularly monitors the change of organisational plan and procedures by measuring performance and observing the operations.
Improves co-ordination: It initiate the decision making by enlighting each department about the problem and requirements of various departments which make the organisation to make collective decision.
Controlling: It is the major link between planning and control, so as to evaluate and progress the performance, using computers helping “processing and storage” of the data with low cast. It mainly accumulates process, treasures and retrieves the data. This is evaluates and distributes the information.
There are Five attributes’ which play a major role in MIS these mentioned below which s should be “useable”
Timeliness: The entity which is maintains MIS should accomplish in affording and categorizing the accurate and current information to relevant users. It should be designed in such manner that it would be accelerate the information, with in less period of time. It should accumulate the data, edit it and abstract it. The mistakes should be rectified by the adjusting.
Relevance: Appropriate information should be given to the manager. Decision making would be useless is the information out dated, not relevant and gratuitous. It mainly focuses on the information which is needed in particular way, to the particular person and to the relevant...
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