What Is MIS ?
MIS (management information system) is a technique of collecting, organizing, summarizing and presenting important data and information to assist the management for making sound decision. It is a computerized system of collecting and storing real-time data and producing information for planning and decision making purpose.
In this post we are going to discuss some major pros and cons of management information system.
Merits Or Advantages Of MIS
The main advantages of MIS can be highlighted as follows:
1. Sound Decision Making
Management information system provide accurate and up-to-date data and information to the management. So, managers can make proper decision by analyzing the real time date.
2. Proper Planning
It provides right information about the current situation of the business such as level of inventory, market condition, customer behavior etc. So, management can formulate future plans and policies on the basis of data provided by MIS.
3. Improved Efficiency And Performance
Managers can monitor, evaluate the performance of workers with the help of MIS. It promotes better supervision and controlling system in the workplace. Therefore, it helps to improve the operational efficiency and employees performance.
4. Elimination Of Duplication
It lowers the chance of duplication of data because it is generally updated in the central department only.
5. Effective Communication
MIS ensures smooth flow of information within different levels, departments and units. It helps to improve communication system in the organization. Good communication promotes the sense of coordination and cooperation in the workplace.
6. Improved Productivity
Because of sound decisions, effective communication and proper controlling system, it helps to boost workers' performance. Better performance leads to increase the productivity of the organization.
7. User-friendly And Flexible
MIS has user-friendly and flexible design. Large volume of data and information can be summarized in simple format. Required information can be obtained easily in less time with minimum effort.
Demerits Of Disadvantages Of MIS
The main limitations or disadvantages Of management information system can be highlighted as follows:
1. High Cost
It requires high cost to set up and configure MIS system in the organization. Therefore, it is not suitable for small firms having less budget.
2. Complex System
MIS is very complex method of collecting and storing date. Special skill and computer knowledge is required to implement the system. So, it is difficult to set up and maintain management information system.
3. Possibility Of Incorrect Decision
Quality of decision depends on the quality of input data in the system. If data is inaccurate, it leads to wrong decision making. In this situation, desired output may not be achieved.
Also Read
Difference Between MIS And DSS
4. Data Security Problem
MIS contains highly sensitive data. So, proper monitoring is required to ensure security to prevent cyber attack and manipulation of data.
5. Ignores Qualitative Data
Management information system gives focus on quantitative data but ignores important qualitative aspects like employees' morale, their attitude, motivation etc. These qualitative factors also make huge impact on the performance of the company.
Pros And Cons Of MIS In Short
Pros
* It enables management to make proper decision
* It assists managers in better planning and to make future policies
* It helps to improves efficiency and productivity
* It promotes optimum utilization of available resources
* It eliminates duplication of data
Cons
* It is costly and complex system
* It is not suitable for small firms having fewer resources
* It considers only quantitative data and ignores qualitative aspects
* High possibility of data breach