Free «Management Information System» Essay Sample

The technique is a well-organized method that studies organizational needs of management in all the levels so as to ensure the creation of operational, tactical, as well as strategic decisions. The core users of the system include the owners of the business as well as the managers in all the stages. The Management Information Systems (MIS) offers a suitable platform through which proper decision-making mechanisms become developed. In fact, the absence of MIS would create real hurdles for business decision-making due to lack of adequate data. Besides, MIS ordinarily provides a solid foundation for the purpose of verdicts based on facts through timely information (Al-Zhrani, 2010). Again, it does that by use of sufficient managerial dogmas and regulations, as well as the systematic tools.

Characteristics of the Users of the System

The users of MIS have different reasons why they want the system to be applied to the business. Although the end objective for the groups is to make proper decisions, they have different interests that need to become fulfilled. The two core users of MIS include the business owners and the managers.

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The management concentrates on improving the day-to-day performances of the firm. As such, most of the decisions will involve matters surrounding monitoring as well as analysis of the daily activities of the company. The managers will implement a system to observe employee performances and presence at their duty station. Further, for the managers, the system will monitor the product as well as information flow to ensure all the levels of the organization work towards a common goal. Furthermore, the managers will also be interested in the flow of resources such as labor and money (Allen, 2010). That will make sure that the distribution becomes done in a fair and proportionate manner according to the needs of each department. Managers will thus utilize MIS to reach the appropriate verdict on how they want the company to run operations on a daily basis.

The shareholders of business are more concerned with their wealth creation as they have invested their money there for that purpose. That would mean the increase in the company’s assets as well as profits. As such, this group uses the MIS model to monitor the entire operations of the business from an overall performance perspective. Therefore, they rarely concern themselves with day-to-day management or low level employees, choosing to focus on the top management. With that, they utilize the system to make long-term planning decisions necessary to raising their wealth. Besides, they also want to ensure the existence of the company is guaranteed, meaning their business have a going concern.

Features and Usage of the System

Management information systems support managers and have become considered as a competitive advantage to those who applies them. The aim of the approach emphasizes the organizational goal support. It does that through several features present within it, including database management, reporting, integration, scalability, open access, as well as reporting.

A good MIS should have the ability to store as well as easily retrieve important organizational data as per the wishes of the system’s user. The response by MIS to queries as well as requests for the information becomes determined by the database. With a proper information store system, administrators establish connections that allow them to create connections among several informational sources (Laudon, 2010). Thus, they can compare the data at ease and make the appropriate decision for a given task.

For efficiency, a good MIS should have open access to its operations. The feature allows the firm to comply with the internal requirements, as well as the external regulations. Again, this system architecture creates an opportunity through which MIS can integrate with other existing systems with no difficulties (Rainer, 2013). That lowers the need to contacting outside service individuals for them to conduct internal service changes.

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The success of MIS has foundation on its capacity to fast connect with other present systems within the firm. The nature of the integration with determine the possible challenges present for both internal and external resources (Laudon, 2010). As such, an appropriate MIS will offer ease of incorporation with legacy systems, thereby permitting the firm to keep its already made equipment investments.

Due to the varying sizes and operations of business corporations, accessibility consideration has become vital. For example, although at present a small and medium enterprises may opt for scaled-down MIS versions, that may change in future when they grow bigger (Laudon, 2010). These features provide an opportunity for firms to grow without having to part with their initial investment.

It is an important aspect of MIS, considering how the whole system revolves around data collection storage and review. A good MIS would get noted by the effectiveness of the reports it produces. Hence, ability to generate data helpful in an organization’s decision-making process has become considered an important attribute for the system (Rainer, 2013). In most occasions, the system produces multiple reports, as well as saving them for future use by others.

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The rules governing the system help guide the owners to making the most appropriate choices for their enterprises. That also ensures managers, as well as other core decision makers, get restrained from exceeding their boundaries or their mandate. Such a move allows for checks as well as balances creating an environment where only proven decisions become considered while upsetting the untested ones. Further, MIS programs have become endowed with the ability to offer real-time updates of the happenings within a company or even the system (Laudon, 2010).

The instantaneous informs assist the management in applying the appropriate actions at the moment when they deem them necessary. That normally happens during the detection as well as the handling of risky crises. Hence, timely decisions avert possible losses for the enterprise. Additionally, MIS are rudimentary in the enhancement of a firm’s security (Rainer, 2013). For instance, owners may program them to do certain activities at a given time, performing routine checks and thereby improving efficiency, as MIS recognizes the problems that face the company. Moreover, it also saves resources as well as time for the business owner.

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Impact of the System

MIS affects different players in diverse ways in its applications. For instance, in the management, the system allows them to have proper control of the company through appropriate decision-making process. The managers are in a position to review all the key data from the day-to-day operations, hence a quick as well as informed judgment on matters affecting the company. On the other hand, the owners will benefit from monitoring of the activities and the general performance of the corporation. With that, they stand a better position to make informed decisions on whether to retain or withdraw their investment.

When such information does not reach the owners, they may make the wrong conclusions about the enterprise resulting from poor choices that would lead to either loss of opportunity or their investments.  On its part, the business benefits in several ways. First, proper records for each activity are well stored for future references. That will help future management and owners to assess the consistency of the performance of the firm. Secondly, the business gets to be governed by informed individuals who reach their choices based on real information and not assumptions (Allen, 2010).

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However, as the system operates automatically, a data breach may occur. That is, people who are not typically allowed to view the information in question may be accidentally or intentionally given an access to the database. If transferred to competitors or unreliable workers, such data may constitute a danger for the whole reputation of the enterprise.


Overall, with the increasing number of companies on today’s economic market, it is profitable to have an electronic information system included in the firm’s internal structure. Specifically, implementation of digital solutions facilitates data storage, processing and analysis, which favors both crucial decision making and day-to-day control. Although consequences of such system’s breakage may seem horrifying, potential benefits outweigh them, still requiring enough attention to be paid to the security issues.

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