The Importance Of A Management Information System

1276 WordsNov 4, 20146 Pages
A management information system is a computerized method of improving the efficiency of the daily activities of businesses as well as improving the decision-making process. A management information system can show the status of a business’ conditions and whether or not these conditions are improving or not. The decision-making process can only be effective if the information is updated regularly by those with authority to access this information. There are very few management information systems that actually work effectively, most not even meeting expectations. Many management information systems are designed under the basis that managers have a lack of relevant information, while actually they are receiving too much irrelevant…show more content…
However, even when given perfect information there are too many variables for even an experienced individual to give an optimal solution for the problem or objective at hand. Therefore, to be successful, you must determine how well managers are able to use the information that they are given. There are a couple more reasons why MIS tend to fail and meet the expectations of the managers that are using them. One of these reasons is interdepartmental communication. The author of this specific article believes that when MIS provide up-to-date information on what each department in a business is doing, it negatively affects the performance of the business, contrary to what most believe. This was implemented into MIS because designers thought that with interdepartmental communication, decisions can be made more effectively and efficiently, which does sound right at first. However the author, gives an example of how this system is ineffective and should be abandoned. He mentions a real-life example involving a merchandising department and a purchasing department in a store. The merchandising department gives the purchasing department an exact figure on how many items they should buy to be re-sold to consumers, based off of a price-demand curve. The purchasing department being slightly pessimistic and not wanting to pay as much for the merchandise orders a fewer number of items than what the
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