MIS (management information system) is a process of gathering, analyzing, summarizing, processing data and presenting in readable format that helps the management to make appropriate decisions. It collects data from different sources and compiles it systematically that provides key information. The main goal of MIS is to assist management in planning, controlling and decision making.
Objectives Of Management Information System (MIS)
Some of the key objectives of management information system are as follows:
1. To Store Data
Management information system (MIS) is used to collect, analyze and store valuable data and information that helps the management to make sound decisions. Properly stored data can be used for future use.
2. To Assist Decision Making
Another notable objective of MIS is to help management in decision making process. It provides key information and data so that the managers can make sound decisions.
3. Optimization Of Resources
MIS helps to reduce wastage and misuse of resources in the organization by providing actual data and information to the managers. Reduced wastage helps to increase the earning of the company.
4. To Track Performance
As we know that management information system provides up-to-date data and important information about all business activities in the firm, it helps to track performance and take necessary steps if needed.
5. To Track Inventory
It helps the organization to track inventory within the company, units, branches etc, So, management can get full information about the inventory position.
6. To Improve Efficiency
Another objective of MIS is that it is used to improve the efficiency in the workplace. Information provided by MIS is used to find out the mistakes and errors and management make proper decision to improve employee performance and operational efficiency of the firm.
7. To Make Future Plans And Policies
By properly analyzing the data and information provided by MIS managers make plans and policies that helps the firm to improve its operations in the future.
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8. To Foster Collaboration
Management information system provides accurate information that helps to minimize doubt and confusion in the workplace. It ensures better communication that helps to maintain good relation with team members as well as with customers. So, it helps to create trust that helps to foster collaboration.
9. To Achieve Competitive Advantage
Firms can improve their performance that improves the quality of output. It helps the firms to compete in the market easily. So, MIS helps to gain competitive advantage.
