To get the synergistic impact of Management Information System in a business organization a Management Information System must bear the prerequisites.
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Requirements of Management Information System
Following are the requirements of a management information system:
- Qualified System and Management Staff
- Top Management Support
- Active Participation of Operating Management
- Control and Maintenance of Management Information System
- Evaluation of Management Information System
As we know it is a super file which has all records or data related to a particular organization at one place. It will lead to a reduction of redundant duplication. However, this master file is sub-divided into the major information subsets needed to run a business.
These sub-sets are:
- Customer calls file
- Supplier file
- Employee file
- Inventory file
- General ledger accounting file.
Database should be user-oriented and should be capable of being used as a common data source for different users and avoid duplication of efforts in storage and retrieval of necessary data and information. Database should be authorized to be viewed by an authorized person.
So it should be controlled by a separate authority that is a DBA (Database Administrator). The maintenance of database requires computer hardware, software and computer professionals who are experienced and qualified too.
In addition to this, it requires a good data collection system having system experts who know the various techniques of data collection as well as knowledge of the working of the company.
Qualified System and Management Staff
In a Management Information System we have two types of experts:
- one computer and system expert who prepares the system and
- other the management staff who directs the system experts about their needs and requirements from a Management Information System.
Both of them should have expertise in their respective fields. But they must possess certain knowledge of other fields also.
For example, system experts must have some knowledge of management concepts so that they can better understand what the management wants from them. Same is the case with management experts. They must have some basic knowledge of computer, so they can help the computer experts in designing as well as independently use the system.
This prerequisite is a very ideal situation but it has to face the problem of procurement of suitable experts. The problem is overcome by recruiting fresh candidates because they can work with experienced people that are already working on the project. Or we could hire a qualified person and retain them also.
Top Management Support
To use or implement the Management Information System effectively, it must have top management support. Top management support is also required for some behavioural aspects of the subordinates because they are ready to perform those activities which are supported by the top management.
The other reason why top management support is essential is that the resources involved in Management Information System are very large and it is the policy matter which is decided by the top management only.
To gain the support from top management, the persons who are in favour of installing Management Information System in the organization must place the cost and benefit analysis of having a Management Information System and other supportive facts before the top management.
This action of subordinates will lead to change in the attitude of top management towards Management Information System and they will give their full support.
Active Participation of Operating Management
As the support of top management is a prerequisite, the active participation of operating management is also a basic requirement of successful implementation of Management Information System.
There is some behavioural problem among the operative staff, that after implementing Management Information System their service would no more be required and they would need the help of some outsider while performing their work.
These problems can also be handled by educating the operative management about the benefits of the Management Information System.
Control and Maintenance of Management Information System
Control of the Management Information System means to control the operation of the system as it was designed to operate. Sometimes users develop their own procedure or shortcuts to use the system that may reduce its effectiveness.
To check such practices, the management at each level should devise check mechanism for information systems control. Maintenance means alterations and modifications according to the need and requirements of the user. So there must be some scope of improvement in the system.
Evaluation of Management Information System
The Management Information System should be evaluated at regular time intervals to meet the future needs.
The evaluation process must have the following steps
- Evaluate whether flexibility exists in the system to cope with any expected or unseen information requirement in future.
- Take the feedback from users as well as designers about the capabilities and shortcomings in the system.
- Guiding the appropriate authority about the criterion to be taken to maintain the effectiveness of Management Information System.
Read More Topics: 1. What is MIS? 2. MIS Definition 3. MIS Meaning 4. MIS Components 5. MIS Objectives 6. MIS Characteristics 7. MIS Advantage 8. MIS Role 9. MIS Challenges 10. MIS Limitations 11. Requirements of Management Information System