How does MIS help Decision Makers?

Management Information Systems is a people-oriented domain with an assertiveness on service through technology. A management information system is a computer-based system that ensures the smooth running of daily management operations in a company through an organized financial database.

Meaning of Management Information System

A management Information system is a system for tracking and scrutinizing management functions like collecting, storing, processing, organizing, and analyzing massive amounts of financial data from multiple sources effortlessly. Nowadays, MIS operations use cloud-based technology to monitor the results of data analysis in real-time, track changes in productivity, and use the database according to the current scenario. The automatic generation of data enables the business owners, directors, and key decision makers in a startup to focus on communication with their clients and help them to efficiently handle inventory, manufacturing, financials, marketing, etc.

MIS reports – a cauldron of information

MIS report provides a summarised view of the different parameters of a business. The top-level managers analyze various types of MIS reports that project employee performance, financial revenues and losses, HR indices, and many more. These reports provide insight into the business model.

Types of MIS reports

MIS reports are created in Tally and Excel conveniently.

1. Accounts report:-The details of assets, liabilities, expenses, and income fill up these accounts reports. Manufacturing, marketing, sales, etc. departments maintain these reports that involve cash flow statements, sales variance, and production targets.
2. Budget report:- Every business requires a budget to allocate and manage expenses. Various budget reports like production budget, expense budget, cash budget, etc., reflect the true picture of the finances in the business. Thus, helping the decision-makers to manage the allotted finances and reduce expenses.
3. Sales report:- Sales MIS report, created and managed by the sales and marketing department, inspect the transaction processes of different products and services. The variance in the estimated and actual sales helps the decision-makers or directors focus on identifying the problems and dealing with their customers directly.
4. Cashflow and Funds statement report:- Through these reports inflow and outflow of cash are scrutinized for transactions over a while. These reports created by the account and finance departments help analyze the source of the fund.
5. Profit and loss report:- Such reports are generated by the accounts team to analyze the variance in the actual and estimated profit or loss during a period. The manufacturing department drafts reports on abnormal losses like breakage and spillage, manufacturing defects, defects in raw materials, and loss due to accidents or natural calamities, which can help the business reduce expenses.
6. Income statement report:- Accountants require these reports for taxes, ledgers, income, and balance sheets for assessing the financial data of shareholders and investors. With these statements, the concurrent finances of the business are highlighted, which in turn eases the decision-making process at higher levels.
7. Cost reports:- This type of MIS report is pertinent for determining costs incurred in the business. In a startup or an enterprise, overall costs incurred by different departments are scrutinized to reduce the expenses. 
8. HR MIS report:- It helps examine the timely performance of the workers. The report displays the calculation for several assignments or projects completed by the employee in a stipulated time.
9. Inventory report:- Such report provides information on surplus raw materials and on the ones that need to be discarded. It helps preserve the figures on production and stock on a daily, weekly, monthly, and quarterly basis.
10. Statistical report:- A statistical MIS report reveals the statistical publications and facts needed to take prompt decisions. It helps to analyze the processed data and develop a factual report.
11. Summary Report:- It helps to aggregate all the information and showcase the data, presenting the true picture of finances.

Many such reports (like Orders in hand reports, information on Ideal time, Machine utilization reports, Trend reports, and exception reports) can be generated, which makes the decision-making process a child’s play for the managers. 

Impact of MIS Reports on business Organizations

• The system receives performance reports in real-time, thus helping the staff to detect potential threats and provide appropriate solutions to reduce them. 
• MIS coordinates various departments to plan strategies according to probable market trends and competitors’ activities. This keeps the personnel well-informed and augments work productivity and managerial efficiency.
• It ensures the systematization of business processes for better understanding and diversification of the business.
• It helps the business to fulfill corporate goals and objectives by providing pertinent databases.
• MIS enables managers to evaluate the performance of the employees and the departments concerned. They can arrange training programs to enhance the productivity of the employees and departments that are lagging.
• MIS works on the transaction processing and database, thus figuring out the errors committed at the managerial or clerical level.
• They can avert work delays and misuse of resources.
• The system is capable of recording databases by storing documents and other operational data from past years, which determines cost estimation, analysis, and forecast performance of the business, thus allowing the managers to take corrective measures.
• MIS reports can minimize downtime for actionable items and optimize the huge amount of data into a concise uniform format. This avoids data flooding and uncertainties.
• MIS reduces the chance of litigation while implementing the policies of the business in conformity with the law.

The management information system is the subsystem of any business. The system serves the function of feedback and control in an organization. In a nutshell, MIS is a useful tool to maintain and upgrade an organization’s corporate lineage.