What Is The Meaning Of Mis (Management Information System) And Reporting?

Decision making at the correct time is the main problem for the success of every organisation. MIS can helps the management in taking decision and thereby make the managerial functions smooth and . In this article I would like to say about the elements and types of MIS, installation of MIS in an organisation and meaning and objects of reports, methods of report, requirements of a good report, general principles of a good reporting system, kinds of reports and process of report writing.

A good decision at the correct time is very important for the success of every concern. MIS will helps the management in taking right decision at the right time and increse production and sales.

Elements of MIS

1. The first element of MIS is determining what type of information will be required and what will be its source .

2. The collected information should be properly sorted and stored.

3 Determine the time and quantum of information needed.

Types of Management information system.

Management operating system: Management operating system meets the information needs of lower and middle level management. It relates to the operations of the business.
Management reporting system: Management reporting system designed to meet the information to top level management. For this the information from various sources is first compiled.

Installation of MIS

The following steps are included in the installation of MIS.

1. Preliminaries: The introduction of MIS requires a proper study of business objective, plans, and policies.

2. Planning: The informational needs and functions of top,middle and lower levels of management should be studied.

3. Implementation: every persons in the organisation should be given training for implementing this system.

4. Review: Review of the system means the problems in this system should be pointed out and a corrective action should be take to make the system more effective.

Management reporting

The process of providing information to the management is known as management reporting. Management reporting is only upwards. That is from lower level to the top level management.

Requirement of a good reporting

1. Good form and content: The report should be given a proper title, headings, sub headings and paragraph divisions. The report must contain the date of preparation and the date of submission.

2. Simplicity: The report should be presented in a simple and clear language. The reader can be easily understand the report. Charts and diagrams should be used.

3. Consistency: The comparability of reports is possible only if the reports are consistant. Consistency of reporting enhances their utility.

4. Accuracy: The approximation of information is avoid because it loses their utility. Accuracy should be used to enhance the use of reports.

5. Promptness: It is very important in reporting. The report should be supplied in correct time then only the management can take corrective measures at the earliest.

6. Relevency: The report should be presented to the relevent person who actually need. It will decrease the unnecessary expenditure.

7. Cost consideration: The cost-benefit analysis should be considered before adopting the reporting system.

Kinds of reports

Reports can be classified in to the following categories
1. According to objects
a) Internal reports: These are reports to the levels of management. that is lower, middle and top level management. these reports are not published to the public. This includes reports about the stock position, selling and distribution expenses, reports of sales, cash flow statement etc.

b) External reports: These reports are meant for the outsiders interested in the company that is shareholders, creditors and bankers. For this at the end of every year the company publishes the profit and loss account and balance sheet and are filed with the Registrar of companies and Stock Exchanges.

2. According to nature: According to nature reports are divided in to enterprise reports, control reports and investigative reports.

3. According to period: According to period the reports may be routine reports and special reports

4. According to function: Classification of reports according to function includes operating reports, control reports, information reports and financial reports

Process of report writing

There are three stages in writing a report
1. Deciding the objects of report: Deciding the purpose or objects of the report is the first stage of reporting

2. Planning the structure of the report: The common parts of a good reporting are heading, addressing to a person, the contents and body of the report, introduction and signature

3. Drafting of a report: If possible use diagrams, illustrations, charts and tables in presenting the report. It may be printed or hand written.

The implementation of MIS and management reporting is essential for increasing production, sales and thereby increasing the profit of an organisation.

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