MIS and Decision Making

Topics: Decision making, Decision theory, Information systems Pages: 6 (1958 words) Published: September 28, 2013

American University of Culture and Education
Badaro Campus
Management Information System

The Role of MIS in the Decision-Making Process

Problem solving and decision-making are two important skills for any business process. Problem solving often involves decision-making, which is mainly important for management and leadership. According to BusinessDictionary.com, decision-making is “The thought process of selecting a logical choice from the available options.” Thus, logical decision-making is an important part of all science-based professions, where specialists apply their knowledge in a given area to make suitable decisions. For example, medical decision-making often involves making a diagnosis and selecting an appropriate treatment. And since every manager takes hundreds and hundreds of decisions, it is vital to provide him an information system where he/she can have quick access to data in case a decision is needed. These systems can also compare planned goals with practical decisions, giving managers a sense of how the decisions fit. The Management Information System or MIS is “an organized approach to the study of the information needs of an organization's management at every level in making operational, tactical, and strategic decisions. Its objective is to design and implement procedures, processes and routines that provide suitably detailed reports in an accurate, consistent, and timely manner.” In the beginning, business computers were used for the practical business of computing the payroll and keeping track of every financial operation. As applications were developed, the managers were provided with information about sales, inventories and other data that would help in managing the enterprise, the term "MIS” perfectly describes these kinds of applications. “Today, the term is used broadly in a number of contexts and includes (but is not limited to): decision support systems, resource and people management applications, project management, and database retrieval applications.” The role of information in decision-making cannot be highlighted. However effective decision-making demands accurate and relevant information. Decision-making is the core of management. In other words, whatever a manager does, he/she does it through decision-making and the MIS assists every manager in providing the required information. Decision-making is a process of selecting one ideal alternative from various alternatives. Thus, decision is the end result of the decision making process. This paper will be introducing the Information Systems concept, the relationship between the management of this system or MIS (its role and the benefits associated with its integration) and the process of decision making, along with the concepts that every designer in MIS should consider before designing the system.

Information systems can be best be understood by looking at them from both a technology and a business perspective. An information system can be defined technically as a set of solid components that collect (or retrieve), process, store, and distribute information to support decision making and control in an organization. In addition to supporting decision making, coordination, and control, information systems may also help managers and workers analyze problems, visualize complex subjects, and create new products. Information systems contain information about significant people, places, and things within the organization or in the environment surrounding it. By information we mean data that have been shaped into a form that is meaningful and useful to human beings. Data, in contrast, are rivers of raw facts representing events happening in organizations or the physical environment before they have been organized and arranged into a form that people can understand and use. One cannot speak of MIS without mentioning the rapid evolution of computer technology, which is expanding man’s desire...

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