Thursday, 8 April 2021

Objectives & Characteristics of MIS (MIS 08.04.2021)

Objectives & Characteristics of MIS

Objectives of MIS

The goals of an MIS are to implement the organizational structure and dynamics of the enterprise for the purpose of managing the organization in a better way and capturing the potential of the information system for competitive advantage.

 

Following are the basic objectives of an MIS −

1. Capturing Data − Capturing contextual data, or operational information that will contribute in decision making from various internal and external sources of organization.

 

2. Processing Data − The captured data is processed into information needed for planning, organizing, coordinating, directing and controlling functionalities at strategic, tactical and operational level. Processing data means −

o  making calculations with the data

o  sorting data

o  classifying data and

o  summarizing data

 

3. Information Storage − Information or processed data need to be stored for future use.

 

4. Information Retrieval − The system should be able to retrieve this information from the storage as and when required by various users.

 

5. Information Propagation − Information or the finished product of the MIS should be circulated to its users periodically using the organizational network.

 

 

Characteristics of MIS

Following are the characteristics of an MIS −

·      It should be based on a long-term planning.

·      It should provide a holistic view of the dynamics and the structure of the organization.

·      It should work as a complete and comprehensive system covering all interconnecting sub-systems within the organization.

·      It should be planned in a top-down way, as the decision makers or the management should actively take part and provide clear direction at the development stage of the MIS.

·      It should be based on need of strategic, operational and tactical information of managers of an organization.

·      It should also take care of exceptional situations by reporting such situations.

·      It should be able to make forecasts and estimates, and generate advanced information, thus providing a competitive advantage. Decision makers can take actions on the basis of such predictions.

·      It should create linkage between all sub-systems within the organization, so that the decision makers can take the right decision based on an integrated view.

·      It should allow easy flow of information through various sub-systems, thus avoiding redundancy and duplicity of data. It should simplify the operations with as much practicability as possible.

·      Although the MIS is an integrated, complete system, it should be made in such a flexible way that it could be easily split into smaller sub-systems as and when required.

·      A central database is the backbone of a well-built MIS.

·      It should be able to process data accurately and with high speed, using various techniques like operations research, simulation, heuristics, etc.

·      It should be able to collect, organize, manipulate, and update large amount of raw data of both related and unrelated nature, coming from various internal and external sources at different periods of time.

·      It should provide real time information on ongoing events without any delay.

·      It should support various output formats and follow latest rules and regulations in practice.

·      It should provide organized and relevant information for all levels of management: strategic, operational, and tactical.

·      It should aim at extreme flexibility in data storage and retrieval.

 

Characteristic Features of MIS.

These characteristics are explained as below:

 

(1) Comprehensive. MIS includes a complex system involving interrelated and interdependent sub-systems that involve transaction processing systems as well as information processing systems that are designed for decision-making and control at different levels in the organisation. All this tends to make MIS comprehensive in nature. Along with this other formal and informal systems relevant in the organisation are included in MIS.

 

(2) Integrated. MIS integrates various sub-systems so that meaningful information is made available where and when needed. For this purpose, the data is processed through various sub-systems. Therefore, it can be rightly said that MIS is rationally integrated in nature.

 

(3) Relevant Information. MIS works towards making available only the relevant information so that the managers are not unnecessarily over-burdened with the jargon of numbers. This would hinder their efficiency.

 

(4) Transformation. MIS involves processing of data in such a way so as to make it meaningful for the managers. Numbers simply do not speak anything of themselves. The data is necessarily transformed to make it a meaningful information to the managers.

 

(5) Co-ordinated. MIS involves co-ordination of various sub-systems to ensure that various activities like collection of data, processing of data, intelligence and decision support system are operated in a planned way so that the information is used most efficiently and effectively.

 

(6) Conforms with the Style and Qualities of the Manager. MIS is organisation specific and to be more precise manager-specific. It is so designed that the information that is made available to the

 

manager most conducive to the style and characteristics of the manager. For instance, information provided to technical personnel is designed in a different way than to non-technical personnel. Similarly, information to middle level managers shall be designed differently as compared to the information made available to the top-level managers.

 

(7) Selective Sharing. MIS emphasises on the selective sharing of data i.e.; it decides which user shall have access to which kind of data.

 

(8) Inbuilt Feedback Mechanism. MIS should be so designed that it should provide feedback about its own efficiency and effectiveness. For instance, it can use cost/benefit analysis or systemic failures to assess itself.

 

Conclusion. On the basis of the above, it can be concluded that the subject MIS came into existence mainly to act as a support to managerial decision-making and control so that the business can use the resources more efficiently and effectively. MIS involves Management of Information in a system that can process the data to convert it into relevant information. With the advent of computers, MIS has come to be used further effectively because processing of large amounts of data has become possible within no time. The various definitions of MIS reveal that it is comprehensive, integrative and co-ordinated effort that makes available relevant information at the right time. Moreover, the information provided is in conformation with the characteristics of the manager who uses the information. It thus also becomes person-specific.

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