Steps of Installing Management Information System
1.
To know the needs regarding information:
First, an analytical study of that
information is made which are needed for the external parties related to the
organisation viz., government, customers, suppliers, labour unions etc.
The needs of information are related with
the size of organisation, nature of business, financial position, state
government policies and several other factors.
There are two methods to judge the needs
of the information. First, the users of the information may be asked as to how
much information they need to accomplish their task. Secondly, they should be
asked as to how they take the decision and then judge what information should
be provided to them.
2.
To explain the objectives of MIS:
The second step is to clearly define the
objectives. Just monitoring to increase the efficiency is not sufficient.
Objective should be clear in terms of what one will do with the information
received by him. The size of the objectives is related with the planning,
management control and continuous flow of information.
3.
To determine the sources of information:
After estimating the need of information
and clearly defining the objectives. The third step in installation of MIS is
to determine the sources of information. There are several sources. The
internal sources of are accounts, files, statistical papers etc. and external
sources are commercial and government publications. Information can also be
collected by personal interviews and personal inspections.
4.
To set the method of collection can classification of information:
After determining the sources of
information, the method of collection and classification of information is
chalked out. It is decided what will be the source of information, frequency,
quantity and time of information? After collection how it will be classified?
Where computers are used the statistical information is feed into them, for
which an outline is prepared?
5.
Method of giving information:
The next step is to determine the method
of giving information. It is decided as to who the information is to be given,
how many copies are to be prepared, when and what will be its frequency and in
which form it is to be given. They can be communicated by reports, charts,
statements or even orally.
6.
Cost profit analysis:
Finally, the cost to be incurred in
information system should be assessed and the benefit should be estimated. The
cost of information system includes the cost of its implementation, practicing
it and its evaluation. These costs should be compared with the cost present
system of giving information.
7.
Evaluation:
Three to six months after implementation
of management information system, it should be evaluated, so that, it can be
judged whether the cost incurred in its implementation is less than the
benefits derived from it and, also if it satisfies the needs of the persons
using it. If it is not satisfactory, steps should be taken to make to more
effective and useful.
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