Answer in Management for Prabhdeep #160147
Explain the role of
1.Management information system (please give at least 8 points for role)
2.Management control system (please give at least 8 points for role)
Roles of Management Information systems (MIS)
Comparison of organization performance- MIS is essential in organization performance comparison; this is because MIS has past data and information in their database.
Strategies for the organization- MIS helps the organization evolve appropriate business strategies to assent a competitive environment.
Find out problems- MIS provides relevant information on all aspects of an organization; hence, if the management makes any mistakes, MIS will provide relevant solutions.
Decision making- in an organization, decisions are made based on the information retrieved from the MIS.
Coordination among the departments- MIS satisfies multiple needs across all functional departments of the organization.
Promote proper planning- MIS provides information needed for planning and the storage of the plan.
Communication- because MIS is in charge of the storage and control of information, it develops ways to communicate this information to management and subordinates.
Monitoring and controlling establish standards of performance to reach objectives and measure actual performance against set goals.
Role of Management Control Systems (MCS)
Assess the organization’s performance – MCS helps the organization evaluate where it is going and how to ensure its goals are achieved.
Documents operation objectives- help outline the goals and objectives that an organization wants to achieve in the short-run and long run.
Compare performance with the set objective- MCS analysis the organization’s actual performance and examines if it is based on the set objectives and goals.
Documentation of operation strategies and policies- MCS helps the organization list the resources, equipment, and strategies need to achieve the organization’s goals.
Check errors- MCS checks the errors that an organization makes during its operations and day-to-day management.
Correct errors- MCS is in charge of correcting the mistakes it finds will checking the errors by ensuring minimization of diversion from standards and ensure objectives are achieved in the desired manner.
Set discipline and order- MCS ensures that employees and management behave in a disciplined manner and maintained.
Financial control- With the balance sheet, income statement, and cash flow statement, the MCS ensures that the organization’s finances are in check.