- Mar 31, 2018
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How management Information System works
A management information system (MIS) is an information system that generates information timely and accurately in an organized form. This allows individuals and large organizations to easily solve problems, make decisions, supervise activities and track progress.
The management information system evolved from transaction processing system. Discoveries on the unusual competence, quick computing and data comparism led to the inception of the management information system. Programs were written to integrate the management information system with the transaction processing system. This has helped to successfully monitor and manage transaction and operation information from initialization to completion stage.
Processing a company’s sales order requires a series of called functions from the transaction processing system. The transaction processing system records the sales, updates the companies account balance, and analyze current inventory product to give current amount available.
The management information produces reports based on the record of the transaction processing system. The system recap daily sales activities, summarize weekly and monthly activities. It shows the list of customers past and present account. This helps to closely monitor and remind adapted clients to pay their debts. The management information system focuses mainly on creating information to managers and other users need to perform their jobs.
The human resource manager can employ workers with high intellectual capacities, expertise and dexterity in different areas of specialization. This can be achieved by the help of the management information system. The human resource manager can view the records of previous employees and their performances. When he discovers the areas of lapses among the current workers, it will help him define a recruitment system that will give the organization the best work force.
The Account manager could easily give an organization a detailed analysis of profit and loses within a time frame. This is done with the help of the management information system. The system gives the account manager easy access to hold transaction records. This allows the account manager to compare the transactions for increased or reduced profit. This leads to restructuring where necessary and help the organization to manage capital more effectively.
The supply chain manager could use the management information system to document accurate statistics of supply and demand operations carried out over time. This will help to monitor inventory closely and regularly to solve problems of late supplies and ignored demands.
The management information system is a system targeted at using fewer employees to increase the output of an organization. It has different management systems integrated to reduce work load and increase productivity.
The system provides three levels of report. These are the detailed report, summary report and exception report.
The detailed report displays all the transaction operations. This report shows all the stages ranging from sales order, customer balance, to the supply analysis.
The summary report depicts the general activity report in a summarized form. This is represented on graphs or tables showing the total of the profit and losses.
The exception report identifies data outside of a normal condition. This report shows cases of shortage of products even when customers are still placing orders. These are situations that require a manager’s immediate attention.
The management information system has helped the management and growth of organizations especially in twenty first century. It collects, transmits, processes and shares data on an organization’s resources.
The progress information of a company can be viewed and analyzed through a network. This is an electronic conference concept that allows different departmental heads to access matters arising. The information of the management could be repented through a projector in a conference hall and analyzed. This will call for brainstorming to rectify any faults threatening the growth of an organization.
Microsoft PowerPoint, macromedia flash and open office impress are examples of software used to present analysis and reports of an organization in a conference or meeting.
DECISION SUPPORT SYSTEMS (DSS)
A decision support system is software designed to help organizations analyze data and make decisions. The system is customized to meet the demands of managers in a company. It helps them view the general records of an organization. This helps them implement new ideas and strategies to increase the output of an organization.
The decision support system is also called an online analytical processing program. It summarizes information and process many records at a time with multidimensional databases. The system uses information from internal and external sources.
Internal sources include sales orders, material requirement planning, inventory records or financial data, manufacturing and resource planning results,.
Data from external sources include interest rates, population trends, current stock exchange rate or prices of raw materials.
Decision support systems have their own language; statistical analysis, spreadsheets and graphics that help organizations retrieve data and analyze the result. This software is designed to auto generate suggestions that will move an organization to greater heights. This is done by integrating both data from internal and external sources. It then singles out the areas that need the attention of the management and what to do about it.
It works by been integrated with other systems in an organization.
EXECUTIVE INFORMATION SYSTEM (EIS)
An executive information system is a type of decision support system. It provides support for the strategic information needs of executive management. The system presents information as charts and tables. This show trends, tables and statistics.
The executive information system typically uses external data sources such as the internet to generate information about interest rates, commodity prices and other leading economic indicators.
An expert system (ES) is an information system that uses the knowledge of human experts to create an automated concept of decision making.
The expert system consists of a knowledge base and inference rules. The knowledge base is the combined subject knowledge and experiences of the human experts. The inference rules are a set of logical judgements that are applied to the knowledge base each time a user describes a situation to the expert system.
The expert system helps employees at different management levels to make decisions. The expert system is called artificial intelligence. This system has been integrated into medical facilities to help diagnose sickness. This makes the work of the hospital management easier. It helps patients recover speedily due to quick diagnosis and medication recommendation.
This system is used in computerized climatic systems to monitor disaster threats such as hurricanes, tornadoes, earthquakes and volcanic eruptions. When the system senses a series of options that could likely cause any disaster it triggers an alarm which help avoid death and casualties.
This system is used in educational institution to score students projects. This is done by measuring the students work with the data of expert professors stored on the system.
Geologists also use expert systems to discover places with natural resources such as oil, mercury and gold. The system’s work is based on expert knowledge and research analysis that has been inculcated into the system. The export system has helped in discoveries and made work easier in the twenty first century.
MIS AND DECISION MAKING
The management information system addresses issues of depreciating organizations in a systematic, precise and concise way. Most of the systems are customized to meet the requirements of different professionals and managers. Decision making involves more of questionnaires and paper work to prefer a solution. The innovation of the management information system has reduced the chances of wrong decisions as much as possible. The implementation of the system has helped improve the economy and society at large.