The process of management requires a lot of data and information for execution of the plan. This requirement arises on account of that in each step of management, a variety of decisions are taken to correct the course of development. The decisions or actions are prompted due to the feedback given by the control system incorporated in the management system. The control of overall performance is made possible by way of budget summaries and reports. The summary showing sales, costs, profit and return on investment throws light on the direction the organization is moving to. The exception reports identify the weaknesses in the system of management.
If effective management system is to be assured, it has to rest on business information. The management performance improves if the business risk and uncertainties are handled effectively. If the information provided is adequate, one can deal with these factors squarely. The information support improves the lack of knowledge, enriches experience and improves analytical abilities leading to better business judgment. So, if efficient information support is to be provided, it calls for a system with the goals of generating management information. A good MIS must furnish information to the managers to expand their knowledge base. He must know the adverse trends in business, the shortfalls and failures in the management process.
The MIS should provide the support to act decisively. It should support management in terms of basic business information at the corporate level and meet the specific needs of the managers. It should highlight on the critical success factors and support key areas of management.
MIS should have, wherever possible, support systems to help the manager in decision making. Modern management systems rely on MIS. The complexity of business operations with skill and foresight to avert the crisis.
Modern business management requires shift from the traditional controls to managerial control. The shift requires the manager to become more efficient in handling the work he is entrusted with. The manager becomes more efficient if he is well informed, made richer in knowledge, experience and analytical skills and is able to face the uncertainties and the risk of business. This is possible only if he is supported by MIS in his specific task of management of business.
Modern business has business has become more technology- oriented wherein the manager is required to be up to date on technological advancement not only in his field of operations but also in the other technologies. The emerging new technologies are posing threats to current business and are opening new opportunities for new business ventures. The manager has to keep himself abreast on the information of how these technologies affect his business prospects. A good MIS designed for such a support is absolutely essential. MIS therefore, is a tool for effective execution of the management process.