The whole work mechanism of a systematic presentation of information in MIS is explained in the proper steps, which are as follows:
The organizationâ€™ employees have to record all the transactions related to the business operations in the prescribed accounts or financial reports.
The recorded transaction goes into the database information system; that is, transactions are recorded into the processing system.
From the processing system, the recorded transactions database is separated into two categories that are the operational database and the valid transaction database.
Now, the valid processing database transaction is bifurcated into two categories, which are the corporate database of internal data and another one is a database of the external data.
The Management Information System uses the processing database transaction, that is, raw data, and converting it into the accurate information that is communicated to the users for further analysis and decision-making.
Role of Management Information System
The MIS’s main purpose or aim is to ensure the data collected from the different sources of business operations are accurate and correct. The collected data is processed further and delivered to the various departments of the organization. MIS helps the business organizations to properly plan and control its functions like strategic planning, transaction processing, and control of the management working. The management information system helps in generating information, solve various problems, communicating the information, and finally assist in the decision-making process. These are all the important roles that the MIS plays in the business organization that is essential for the easy and efficient working process of the business.
Benefits of Management Information System
The Management Information System is beneficial for every business organization. It deals with data and information used at every point in a business organization. Some of the benefits of a Management Information System are as follows:
MIS makes easy availability of information by presenting the information in systematic form through processing raw data. And, easy accessibility decreases the time consumption in data analysis.
Systematic information helps the manager to make sound and accurate decisions for business operations.
MIS increases the working time of the business organization and increases productivity with time.
MIS stores the information into different categories, which enable the forms to get access to important data at a time.
MIS also gives the company an advantage in cost-saving by providing accurate data, which reduces the chances of errors.
MIS provides systematic records of the business transaction and data records of the human resources to track the performance of the employees, which helps in the performance appraisal program.
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