Decision Support Systems

Why MIS is Important for Planning, Decision Making and Controlling

For managers to be able to perform the functions of planning and controlling, information must be readily available on the basis of which of these functions may be carried out. There must be a system which can provide accurate information in time for managerial decision making. Future plans are based on information regarding the past, the present and forecasts for the future. Controlling is based on present and past performance as measured against some set standards (goals and objectives). It is not possible to identify deviations from the right path and steer action back on course unless there is accurate and timely information, relevant to the situation in sufficient quantity and quality.

An MIS is any organized approach for obtaining relevant and timely information on which to base management decisions (Mondy et all, 1988). It is a formal method of making available to management the accurate and timely information necessary to facilitate the decision making process and enable the organization's planning and control functions to be carried out effectively. It has been argued that no attribute of an organization significantly affects decision making as does the management information system. An effective MIS effectively employs computers and other sophisticated technologies to process information that reflects the day-to-day operations of a firm organized in form of information to facilitate the decision making process.