Nowadays, in order to complete all the functions of a business organization effectively, there is a great need for implementing effective information system. This article highlights the need and importance of Management Information system.
There is no doubt that computers and information systems have become essential parts of every business today to provide timely, accurate and updated information which facilitates greatly in the smooth functioning of a business as well as effective decision making process. Whether it’s a small, medium or large business, updated information is extremely desirable and useful. The need for the most recent information arises at all levels of a business organization to satisfy its complex needs. Every business requires information to collect, process, store and retrieve data which in turn being combined and disseminated in the form of reports, is usefully exploited as and when needed. Hence the need for management information systems that aims to support business operations effectively and efficiently.
Management information system- MIS, refers to a computer-based system that provides managers with the tools to organize, evaluate and efficiently manage business operations. Management information system or MIS is also defined as a computerized database of financial information organized and programmed in such a way that it produces regular reports on operations for every level of management in a company.
It is usually also possible to obtain special reports from the system easily.
Information is one of the most useful resources of a business organization. The other organizational resources are: men, money, machines, materials and methods - they are generally known as “five M's” of management. Each business activity of a particular business process requires generating inputted data to provide some form of output or convert to something usable. And so the updated information is essential in business for various purposes. Information system is so important that it is virtually impossible to arrive at effective decision doing otherwise.
Everyone in an organization, from an employee who is involved in just entering data to the employee working at higher level uses the information for specific purposes. The need and importance of management information systems may be understood in the fact that in the absence of latest and accurate information, the growth and smooth functioning state of a business organization can be highly affected. Organizations have multiple functional systems, such as, financial systems, inventory systems, sales systems, hr management system or logistic system etc. In order that the relevant activities may be performed efficiently, management information system is of great help and assistance. Making effective decisions in business requires the updated information in the first place. Moreover, in this competitive business world, up-to-date information is necessary for developing effective strategies in all the aspects of a business entity and to attain business goals and objectives accordingly.
Using management information systems in an organization simplifies the processes and provides up-to-date information. It enables to get the information related to various aspects of a business through which the strength and weakness of a business can be identified that in turn can lead to formulating strategies and implementing them accordingly in order to bring improvements. MIS professionals help organizations in many ways. Whether it is a big, medium or small organization, it realizes maximum benefits from investments in personnel, equipment and business processes. MIS is people oriented with an emphasis on effective and efficient services. It continuously meets the special, extraordinarily large and complex needs of a business, while it aids greatly in the attainment of business goals and objectives by providing an overall picture of a company.
Ordinary interest is calculated on the basis of a 360-day year or a 30-day month; exact interest is calculated on a 365-day year. The interest formulas for both ordinary and exact interest are actually the same, with time slightly differing when given as number of days..
Managerial economics helps to develop leadership qualities which are necessary for every business. It helps in effective decision making thereby profiting the company.
Publicity and advertising both are market promotion techniques. But most of the people dont know about the major differences between these two.