Role and Impact of Management Information System

Role of Management Information System

Role of MIS in organization can be compared with the role of heart in the body. It plays following important roles in the organization.

It ensures that the appropriate data is collected from the various sources, proceeds and sent further to all needy destinations.

It helps in Strategic Planning, Modeling Systems, Decision Support Systems, Management Control, Operational Control and Transaction Processing etc.

It helps junior management personnel by providing the operational data for planning, scheduling and control and helps them further in decision- making at the operational level to correct and out of control situation.

It helps the top management in goal setting, strategic planning and evolving the business plans and their implementation.

It plays the role of information generation, communication, problem identification and helps in the process of decision-making.

Impact of Management Information System

With a good MIS support the management of marketing, finance, production and personnel becomes more efficient. The tracking monitoring of the functional targets becomes easy.

Since Management Information System uses a dictionary, there is a common understanding of terms and terminology in the organization bringing clarity in the communication and similar understanding of an event in the organization. It calls for a systemization of the business operation for an effective system design.

That is it helps indirectly to pull the entire organization in one direction towards the corporate goals and objectives by providing the relevant information to the people in the organization.

The MIS has a direct impact on many overheads in the organization. It creates an information-based work culture in the organization.

Management and Management Information System

The MIS has a strong support to the management as illustrated in the figure below