INTER-DISCIPLINARY NATURE OF MANAGEMENT INFORMATION SYSTEMS

Management Information System (MIS) is a system designed in order to study people, technology, organizations and the relationships among them. MIS provides selected decision-oriented information needed by management to plan and evaluate the activities of the organization. Needless to say, the Information System is one of the most promising fields today. In order to understand the scope of MIS and nature of management, we first need to understand what is MIS.

Management Information Systems helps firms in realizing maximum profits on their investments. The whole system is designed with the aim of enhancing profits, exercising better control and performance planning at all levels. Information systems are used at all the levels of a business organization in order to collect, process or store data. However, this gathered information needs to be carried out in an efficient manner which actually helps in business growth. So, MIS professionals create information systems for data management. They manage the various information systems in such a way that it is able to meet the needs of management, staff as well as clients. MIS professionals play a critical role in areas of information security, integration as well as exchange. 

Management Information Systems (MIS) can be simply referred to as a system or process that facilitates the smooth working of the organisation. The nature of MIS is truly multifold because it plays a bigger role in business decisions, from costs to employee management. Here are the major features that portray the nature of MIS:

• MIS is utilised by every level of a management.
• It clarifies and focuses on the strategic goals and objectives for the management.
• MIS provides an effective system to analyse costs and revenues and further reviews effectively and efficiently to bring a balanced in finances and costs.
• MIS is maintained either through manual systems or automated systems or a combination of both.
• It also plays a incremental role in identifying, locating, measuring, tackling and limiting risks.
• It lays down a framework of rules and regulations for the management to bring a clear and concise communication between employees.
• MIS provides an objective system of collecting, assessing and aggregating information for a business.

INTER-DISCIPLINARY NATURE OF MANAGEMENT INFORMATION SYSTEMS

After understanding what is MIS and the nature of management, it is clearly seen that management information system can be used by any discipline, ranging from accounting, human resource management, auditors, engineers, builders etc. Information Systems is growing at a fast pace to become one of the most promising career fields in today’s world. With everything happening digitally, the demand for MIS professionals is increasing more than ever. MIS involves performing a number of task simultaneously such as- 

• Processing data
• Initiating transactions
• Responding to inquiries
• Producing reports and its summaries
• Manage the data created within the structure of a particular business

MIS acts in an organization just like a nervous system in a body by providing with the relevant information for ease in the process of decision making.

The purpose of MIS is to work towards satisfying the information needs of everyone in the business. It means providing the relevant information to those who need it.

Thus, MIS has a lot of potential to become one of the most promising careers for individuals interested in the workings of a business.

The role of Management information system (MIS) is vital now-a-days in business environment across boards as there is no bounds or limited to which professional can used the it. This is solely because it has evolved over time to become an integral part of its business operations (Abdul and Khan, 2016). The use of management information system has increased for last few years not only by firms, but also by individuals and even governments. Because of the today’s global environment where competition is very high, it is the basic requirement of the organization to install management information system to compete the market and to earn more profitability, invest in innovation in their products, and to grow their businesses. All of these factors transformed the information system from data processing systems to decision support systems and became the foundation of the new business environment.

 

Development in information related equipment techniques and concepts collectively called information technology have been occurring at a breathtaking pace. New version of computers terminals, and other devices are announced almost daily in business new techniques for solving business problems. Many of these developments provide management information system to improve the effectiveness of information system and the quality of managerial decision making.

 

Other effects of an organizational nature are appearing, for instance information system functions are being organized to manage information system also, functional information system is being installed alongside accounting and other information systems e.g. personnel information systems.

 

Since each member of this combined group focuses upon information for managerial decision makers, the resulting combination is known as the management information system. The Management Information System is an important portion of a firm’s communication e.g. banks overall information system.

 

Corporate operations and decision-making are widely based on information that has been provided or generated by individual and specific Information Technology systems. Such systems are used to collect, harvest, organize, and generate an output that would back up fast and sound business decision. Firms adopt new management techniques and systems with the purpose of enhancing the decision-making processes, improve results and minimize output costs (Henry & Mayle, 2013). Consequently, this is a way to enhance company operation effectiveness. Various management techniques and management accounting practices improve financial performance if firms follow specific strategic priorities (Naranj-Gil, 2004).