SCOPE, OBJECTIVES AND PURPOSES OF MANAGEMENT INFORMATION SYSTEM
The scope and purposes of Management Information System can be better understood if we examine each word in the term. Firstly, management comprises the activities of managers and Management Information System is necessary to facilitate the decisions, managers have to take. Further, management has become system oriented and more sophisticated in management techniques. Secondly, information (as distinguished from data) is the essential raw material for making decisions. The job of Management Information System is to turn data into information. Information is planned for and made available to managers as needed, Thirdly, organisation is a system with a high degree of synergism. A system of information ties planning and control by managers to operational systems of Implementation.
In general, the Management Information System is the means for connecting the managers with operating systems by exchange of information. The specific purpose of a Management Information System is to provide information for decision making on planning, organising and controlling the major activities of the organisation and initiating action with the intention of achieving synergistic benefits. The main objectives of Management Information System are facilitating the decision making, planning and control processes, objective performance appraisal of different units and' individuals, the economic and efficient production of reports and serving as means for giving direction and action to manager's communication. It is important to note that Management Information System is meant for supplying and not generating information for managers. It is expected to provide processed information to the decision makers. The output of Management Information System is usually in the form of information reports. Such processed information is also disseminated to members of the organisation, the public and external stake holders like customers, distributors, competitors, suppliers, labour unions, stock- and bond-holders, financial institutions, trade associations, governments, special interest groups at large and regulating agencies.