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A well designed Management Information System (MIS) within an organization brings about managerial efficiency and effectiveness. Availability of information equips the managers with proper tools of management in the organization. It aids him to apply modeling and experimentation practices in management. The use of computers in management facilitates the application of techniques and tools that cannot be done manually. This greatly improves on the running of the organization as it makes work easier (Chun, 1999). It improves the performance of the managers and the organization at large as the decision making process is enhanced considerably.


A Management Information System (MIS) is a process or a system devised to enable the management of businesses to access necessary information that facilitate in running of organization in an efficient and effective manner. The information generated by MIS is considered as an indispensable component in making prudent and proper decisions within an organization (Zhang & Li, 2005). Management Information System is composed of computer resources, people as well as procedures and processes that are incorporated in the modern business ventures. Most decisions made at the organization level relies on the information availed by the management information system (MIS). Therefore, this implies that the quality of decisions made in an organization is greatly influenced by the effectiveness and efficiency of information system applied in that organization.

Chun (1999) outlined that there are certain qualities that are supposed to be part and parcel of information availed to the organization for it to be considered relevant. These include; the information should be appropriate to the users, timely, available any time incase it’s needed, and it should serve all users in a uniform manner. These qualities can be used as determinants of assessing the efficiency and effectiveness attributed to the systems that provides information in any particular organization.

In the recent past, advancement in information technology has shown an improvement in the quality of information provided by the systems within organizations. Likewise, technology may also create a room for inaccurate reporting and biased decision making. This may be attributed to obtaining data from distinct transaction as well as financial systems. Therefore, there is need to put appropriate systems in place so as to ensure that information provided is accurate and relevant to the users (Banker & Kauffman, 2004).

According to Shane (2005), for a management system to be termed as effective it should guarantee provision of information at all levels of management in an apt manner that serves its purpose. Maintenance and development of MIS can be facilitated by either automated or manual systems or can be by a combination of the two. It should be sufficient all the times to facilitate in the achievement of organization core goals and objectives. MIS should also facilitate effective delivery of goods and services offered by the organization. It should be useable as well as accessible to diverse users’ at all suitable levels within an organization.

Management information system may have positive or negative implications depending on the reliability and relevance of information provided by the systems. With relevant support; marking, production, personnel and finance management become most efficient and effective within the organization. There is easy monitoring and tracking of the functional goals. Functional managers are informed on the targets that may be achievable within a stipulated period of time and those that may not be achievable. This enables the management to monitor trends of the business, achievements as well as shortfalls within a given period of time (Fletcher, 2001).

Hence, this helps the managers to forecast and make appropriate decisions on production and delivery of goods and services and to make appropriate long term plans. An effective and efficient system helps to bring manager’s attention in an exceptional situation in nature where he is able to a decisive action in matters pertaining to organization. There is creation of knowledge base and structured data accessible by all people within an organization through a well organized information reporting system. This makes the manager’s work easier, saves time and efforts required in management process.

Risk Management

Management information system forms the core basis of risk management within an organization. MIS can be used in managing, monitoring, evaluating, limiting and measuring risks. Risk management entails four main elements that includes; staff, policies and practices, operational processes and management feedback resources. However the most efficient and effective management information system should accommodate informational and operational attributes. In this case, therefore, the management can use MIS to measure the performance of the organization, enable institution to be in line with various regulatory requirements and to manage its resources (Drucker, 2007).

Similarly, it can also be applied by management while providing feedback on the controls’ effectiveness. Controls are put into place to monitor the management of institutions through practices and policies, delegation of responsibilities and duties to managers as well as staff and for operational processes.

Cut on costs

An organizations management information system should be development with the aim of reducing expenses associated to cost of labour and aid in the achievement of organization set goals and objectives. Since MIS equips decision makers with facts it can be attributed to supporting and improving decision making procedure. Likewise, it provides basis in which the organization’s activities are closely monitored and information properly disseminated to employees, customers as well as the management (Webster, 2005). Effective and efficient MIS should ensure suitable presentation of formats and be timely to senior managements and the operators in the organization.


Efficient and effective management information system can be useful to the managers in terms of provision of competitive advantage. The system must be in line with organizational goals and objectives. This will suit various functional lines. For instance, the accounting management information system provides a basis where all information relating to accounting is shared by accounting managers at all levels. Similarly, financial management information system provides relevant information relating to finance across all managers which also includes the chief financial officer. It’s the duty of the chief financial officer to provide an analysis of current and historical financial activities, projecting financial needs in future and using MIS to control and monitor the usage of funds in a given period of time (Fletcher, 2001).Human resource management information system on the other hand deals with activities connected to workers, managers and other organization workforce. This information is necessary to the success of the organization as the human resource managers are involved in planning, job assignments, hiring and work-force analysis.


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