Management Information System (MIS) is considered the nervous system of any organization. MIS is the system that records and maintains information that is required by the management at any given point of time. It is important because of the limitation of the human memory where we cannot recall everything. MIS in needed to provide reports to investors, governmental external agencies. It’s a statutory requirement of any organization.
It is said that a work that is not reported is, as good as not done. MIS provides evidence to the work that has been executed. It makes the system organized and we can evaluate the system by analyzing past records. These past records also help in evolution of the system. With the help of this information we can make financial and management decisions. Management can have better understanding of the organizational working by looking at the reports and data, which if stored in form of numbers, makes evaluation easier. Database is considered strength of an organization. We can use it during meetings with staff and management to plan ahead. Information can also be used for references in times of need or decision making. It also helps key people to take fast and effective decisions in critical situations which will increase operational efficiency.
MIS helps us to assess our strengths and weaknesses. It helps in making the audit process easier. People will refrain from providing fake information because of the audits and checks in the system. When people are in the habit of reporting they become more responsible. Reports are like mirror of their performance which they can evaluate themselves. With the information at hand, we can set and decide our own targets. MIS has evidential value therefore people cannot escape from their responsibilities since everything is recorded. Most importantly through MIS good performances can be identified and appreciated.
When everything is documented and reported, any staff’s exit from the organization does not impact the work. MIS helps new recruits to understand the system and follow it. However, we must remember that excessive reporting can be counter-productive as people would spend more time on reporting than executing.
Finally, please do not forget to keep a back up of the MIS records, information and data.