Management Information System
Management Information System
Management Information System (MIS) has the ability to create reports in most valuable features. The internal reports and information allowed the managers understand all the relevant data and grouping data in a logical way. The corporate managers of McDonalds and Microsoft companies viewed or showed their labor hours, profits, expenses, and which store performs better through the systems. The employees assigned to the front line used MIS to perform their works effectively and efficiently. The employees at all levels consulted MIS to thoroughly check the status of inventory items, internal transfers of materials, and statistics of the specific department. MIS is costly in implementing the system and coupled with the disadvantages of the specific systems. Aside from the MIS software, the company should hire additional IT personnel to maintain the system, and the management should train the employees assigned to the information system department. The required ways for the management to prioritize in MIS are the data collection and input and weigh the potential benefits before the implementation of the system in the company.
Keywords: management information system, information system, information technology,
The Management Information Systems (MIS) is a system that utilizes information to ensure appropriate management of businesses. Essentially, the facets of MIS cover everything along with the overall efficiency of the entire system. The MIS consists of the three primary resources; technology, information, and the people. As a result, a good MIS leads to a good decision-making, particularly, in the business. Correspondingly, a poor management leads to a poor decision-making. The management information system generates an accurate, timely, and organized information; most managers and other users can make good decisions, track progress, supervise various activities, and solve issues in the organization. It implies that the managers can focus on the significant issues in the organization to deal with and essential to the time management. The managers can easily create reports comprehensively of all the information needed to make decisions from the daily details of the top-level strategy. In McDonalds, the management system has a highly well-developed application of information technology and information system as part of the corporate objectives of the company. In particular, the transaction processing, recording, and financial management are the most significant aspects of the company with the application of the information technology. The company adheres that a good MIS promotes a good relationship within the workplace, sales, and marketing activities. The MIS provides a real-time transmittal of information regarding the flow of the business. On the other hand, the Microsoft Company significantly applies the management information systems in dealing with the internal affairs of the company. The company deals with several software systems and the use of the system becomes handy; it enhances the productivity of the employees. The employees have the ability to work or perform well from their own homes, and other areas at their convenience. It only shows that MIS is one of the best tools for certain firms to assess and analyze the efficacy and efficiency that result in facilitating the growth of the organization. Specifically, the information system is a computer system that provides the entire management with an up-to-date information about the performance of the company, for example, sales and current inventory. Basically, the information is linked to a computer network that is created by connecting different computer devices to share the resources or data. In particular, the MIS is designed to transmit, store, manipulate, retrieve, and/or display information, strategically and operationally. The management information system relies mainly on the technology to gather information from a variety of sources, store, compile, and present it in a readable format; it supports decision-making activities and result in a good management information system.
The company embraces on the principle that the management information system has three primary resources; technology, information, and the people. The types of information systems used in the company are the Transaction Processing System (TPS), Decision Support System (DSS), Scale of Point System (POS), Made For You System, and Hyperactive Bob System. Through a proper MIS, the results of the performances are effective and efficient in terms of decision-making and other functional areas in the organization. McDonalds implemented the MIS in order to produce timely reports; daily lists of employees and the number of hours of work, and monthly reports of sales, expenses, and more. The main purpose of the MIS is to provide profitability and timely reports to assist the managers and employees to understand thoroughly the business, the overall performances, and potential plans.
TPS (Transaction Processing Systems)
The TPS records and processes the company’s daily activities; it receives input data and converts it into the output, the information needed by the user. The input data are the transactions or the events happened in the business that undergoes transaction processing; it collects, stores, modifies and retrieves the financial transactions made. Thus, it is significant to store the data of the transaction properly because it involves monetary terms such as sales, purchases, salaries, and other financial transactions. In addition, for nonfinancial transactions, the demographic data can be added to the database. In general, the TPS consists of the notification of payment received and the information circulated in the form of reports internally.
DSS (Decision Support System)
A system that is used to model data and create quality decision based on the gathered data. DSS is an interactive system of collecting, displaying, and integrating data from the multiple sources. The function of DSS is to extract data from the internal sources with the human component to decide whether the organization has the financial ability to expand its operation. McDonalds will be guided whether the particular state has the strong demand for a new opening of another branch. The information allows the company to analyze and interpret the data provided by the system. Consequently, the system helps the manager create non-routine decisions in the company and necessarily, the right decision is always based on the analyzed and interpreted data. Thus, the DSS allows the user to make the decision-making process reliable and easy.
POS (Scale of Point System)
Being a very busy restaurant, McDonalds needs to deliver faster services to the customers. In order to accomplish a fast and accurate service, the company uses the POS. The system helps to speed up the business process. Functionally, it can track a substantial amount of data in seconds by transmitting the order instantly to several workstations within the facility. The cashier automatically knows what payment is due to the customer while the kitchen station knows the orders and the standard waiting time allocated to the customer. The system helps finish the order faster with lesser error. In addition, the cashier can see the screen monitor clearly regarding the specific order of the customer. On the part of the managers, they can check the profits, losses or a total amount of order regularly.
Made For You System and Hyperactive Bob System
In this modern technology, McDonalds uses the Made for You system to serve the customer promptly. The function of the system is very useful; after the customer made the order, the front service employee clicks on the order. Automatically, the kitchen employee monitors it, then makes the order just in time and ready to serve. Another system, the Hyperactive Bob system uses computers and cameras to monitor the customers entering the vicinity. Through the system, the employees are aware how fast and how much amount of preparations is needed to satisfy the need of the customers.
Advantages and Disadvantages
TPS has its advantages and disadvantages of its application. TPS is an easy and best solution for purchasing order, efficient and it has an excellent response, easy to use through the web and database servers, and the credit cards are well-handled by this system that is convenient for the customers. However, during the purchases, even if the servers hang shortly, a large number of transactions are affected, in turn, it affects the reputation of the organization. When the server is hacked, it leads to financial and personal issues. In the case of hardware failures, the transaction processing systems will be in trouble and the transactions will suffer. During an electricity outage, a backup facility is necessary, such as a generator and related hardware. The implementation of TPS is costly and the system is atomicity in its function. It means that if any step fails, then the entire transaction fails. The DSS creates disadvantages in terms of monetary cost, overemphasize decision-making, the assumption of relevance, unanticipated effects, transfer of power, status reduction, false belief on objectivity, and information overload. It is important that any organization that will implement and invest in DSS must compare the advantages and its counterpart in order to obtain valuable investment. In terms of bookkeeping and accounting costs, POS has its benefits because it generates to track the employee time, inventories, and transactions without hiring an extra personnel to do the work. In addition, at times, it is difficult to teach employees a new system that is why some do not upgrade to POS and the unit itself is costly.
In the corporate world, the Microsoft Company utilizes information as a necessary element of the business. In planning, the senior managers require information to properly facilitate the plans. However, the middle-level management relies on the detailed systems of information to properly control and monitor different activities in the business. Simultaneously, the employees assigned to the operational roles are inclined to rely on the information systems to efficiently carry out their responsibilities. Consequently, the company applies the Management Information Systems in dealing with the internal affairs of the company. The Microsoft company implemented the information system that operates in accordance with the objectives of the company.
AOS (Office Automation System) and DSS
The system improves the productivity of employees who need to process data and information. The utilization of AOS becomes handy and it enhances the employees’ productivity who need to process data and information. Particularly, the employees have the ability to work from their own homes, and other areas at their convenience. In addition, the OAS configures networked computer hardware and software. Basically, the OAS is a system that is computer based that collects, processes, stores, and transmits messages electronically. It refers to the varied computer machinery and software that creates, collects, stores, manipulates, and relays office information digitally for accomplishing the tasks. The advantages of AOS are (1) it reduces involvement in clerical work, (2) less work force for a large volume of data, and (3) it has an accurate storage and reduce the storage space. However, the disadvantages are (1) it is expensive, more technical, resist to change training in cost and time, and do not function if there is an electricity outage.
Microsoft also uses the DSS, similar with McDonalds company. DSS enables the management to make decisions in situations surrounded by uncertainty. Occasionally, many uncertainties arise from big companies like Microsoft, that it why the company uses DSS. The method of the system consists of different techniques and tools that are capable of collecting relevant information. Through the techniques, the system provides analysis of all the relevant information being gathered. Additionally, in the process of analysis provisions, the system provides alternatives used in case of probable absence of the relevant information. Aside from the provisions of alternatives, it involves the use of complex spreadsheets and different databases to develop several what-if models. In relation to the database such as an SQL, the company uses MIS to create the Customs Information System. The development of the system enables data links during the process through cross-referencing with different reports and information more valuable and useful.
Discussion and Conclusion
Mainly, the purpose of MIS is to make decision-making more efficient and productive among the managers of the respective companies, McDonalds, and Microsoft. MIS can provide managers with everything they need to create highly informed decisions and perform a comprehensive analysis of operational issues. MIS collects almost any type of information managers require, the managers can view financial data; daily revenues and expenses, and attribute them to specific departments or teams. In addition, the performance indicators, the suitability of projects and the quality of products can assist managers to pinpoint areas of needed improvement. The staff can manage schedules for work shifts, deliveries or shipments from any place, everything linked to the MIS. Thus, the management information system facilitates collaboration and communication. The employees edit and share documents and communicate pertinent information on expected developments, warnings, and issues across the organization. It is necessary to improve the security and privacy issues of the information technology of the to ensure that no confidential information will be revealed. The leakage of confidential issues from the system of the company can affect the reputation company and its stakeholders. Moreover, prevention must be improved to ensure no illegal or unauthorized entities can access the files and data of the company or destroy the relevant information in the system. Above all, the management should consider the potential benefits of the system before the implementation of MIS.
Ingram, D. (2016). What Is a Management Information System? Houston, Texas. Retrieved
February 5, 2016, from http://smallbusiness.chron.com/management-information-system-2104.html.
Maingi, N. (2014 ). Microsoft Business Information Systems. United States of America:
Computer Science - Commercial Information Technology.
Mc Donald's Information System. (2011). Retrieved February 5, 2016, from