MANAGEMENT INFORMATION SYSTEMS

Information Systems and Management Decision Making

Information Systems and Management Decision Making

Introduction

The management information systems or information management function is a specialized organization function with responsibility to plan, design, build, maintain, operate, and manage the information infrastructure and applications. This includes acquisition and management of both internal staff and external resources. It also includes technical, advisory, and educational support to aid users in applying appropriate technology to their tasks. A management information system is a proven structure for the management and continuous improvement of policies, procedures and processes of the organization. When deciding to prepare the Management Information System, organizations should remember that it related to the following consequences:

Change the organizational structure of process-oriented structure.

Change the powers and responsibilities of organizational managers.

Isolation of centres responsible for the costs and outcome.

Change in organizational documentation and workflow.

Change in management attitudes.

Although one can have an information system without the use of a computer and associated electronic communication, the modern concept of a management information system assumes the use of such technology. An automated information system allows tasks to be done faster and more efficiently, removes many of the constraints of manual methods, and promotes new ways of doing things (Long, 1994, Pp 365 - 397).

Discussion

The best companies work as complete units with a shared vision. This includes information sharing, benchmarking, teamwork and performance according to the strictest principles of quality and the environment. A management information system helps to achieve the objectives of the organization through a series of strategies, including process optimization, the focus on management and disciplined thinking. Using a proven management system allows managers in constantly renewing their objectives, strategies, operations and service levels (Raghunathan & King, 1988, Pp. 85-93). The implementation of an effective management system can help:

Managing the social, environmental and financial.

Improve operational effectiveness.

Reduce Costs.

Increase customer satisfaction and stakeholder.

Protect brand and reputation.

Continual improvement.

Promote innovation.

Eliminate barriers to trade.

Provide clarity to market.

Levels of Management Decision Making

The use of information technology for administrative and management decision support extends the nature of the information system from a transaction and simple reporting system to one that supports the higher-level administrative and managerial activities of the organization. The administrative and management support can be classified both according to support for levels of management activities also in terms of support for knowledge work (Mitchell & Yan, 1993, Pp. 12). The levels of management activity define the three control objectives to be achieved and the time horizons for each. Operational management achieves short-term operational control in delivering goods and services, mid-term management control directed at meeting market and financial objectives, and long-term strategic direction seeks to adapt to changing conditions and new opportunities. As illustrated in Figure-1, the information system support for management activities commonly defined as a pyramid with more structure and programmed decisions at the lower levels and less structure and non-programmed decisions at the higher levels (Premkumar & King, 1994, Pp. 75-109). Figure-1:

Management information system support for management

Management Information System

A System of Decision Support (DSS) is a business intelligence tool focused on data ...