Tread Way Tires - Traits of Management Information System - Case Study Example

The Impact of Management Information System in an Organization Institution Date The Impact of Management Information System in an Organization Introduction Computer and management specialists have discussed the concept of management information systems for a long period of time. The implementation of the concept has greatly revolutionized management of organizations and has greatly influenced the way decisions are made in the organizations. The technology to see the implementation of sophisticated information systems is now available and companies are having major benefits as far as management is concerned in organizations. Management information system is the term given to the area that specializes in integrating computer systems in the management of organizations in the effort to gain the organizations goals and objectives (Terry, 2005).Information generated for various purposes in the organizations have been leveraged and disseminated by the management information systems in organizing and manipulating the gigabytes and information masses. In a Company such as Tread Way Tires, a company that manufactures Tires in the USA, business processes have been able to be optimized by the use of MIS and the information concerning the needs of the employees, stakeholders and the customer base has been addresses in making strategic decision for the development of the organization. The executives and the entire workforce in Tread Way have Tires has been greatly helped by the development of MIS in carrying out their tasks that relate to information processing (Terry,2005).The MIS has been greatly helpful in collation of the organization data and production report which is used as a tool for decision making in the organization. According to Jones (2009) the presence of computers in today’s world has made it possible for large organizations to use information technology to process information that is vital for the development of the organization both internally and externally. However there are certain fields where MIS has assumed a helpful role in Tread Way Tire’ decision making, support system, Enterprise resource planning, customer relationship, supply chain management, data retrieval, project management, people management and resource management. MIS has helped the company to create a support strategy for the organization since computers would not create strategies on their own; management has been assisted by these computers to understand the effects of the strategies created in the business which will see to it that the end decision is well effected. This is because information data is processed to give more meaning that will help the organization or the industry to stipulate the progress of the business. MSI provides financial statements and reports for performance which has helped Tread Way to plan, monitor, and implement the company strategy. Terry (2005) writes that organizations are able to list down their strengths and weaknesses because the revenue report and performance of the employees are made available by MIS. This would not be achieved if MIS was not implemented in the organization. If aspects on employee performance or financial performance are provided and identified they can help to improve the operations and processes of the business. This can then give an overall image of the company’s performance and act as a tool of communication to both external and internal business environment. The feedback from the customers and their overall data is made available through the use of MIS; this helps Tread Way to plan their business operations according to the needs of the customers. Direct promotional activities or marketing can be made if the company effectively manages customer feedback data. Enterprise resource planning is also made possible where by Tread Way company businesses run in different locations are unified in one data system and the personnel can be able to plan, control and manage main processes of businesses across different locations. Jones (2009) indicated that they provide a unified data system which helps the personnel to be able to plan, control and manage the business processes. Such business processes that are unified include human resource, production, marketing, accounting, and finance and inventory management. MIS enables more efficient control and management of the system of supply chain by assimilating the supply chain links. This includes integrating information concerning the company suppliers, customers, manufactures, wholesalers and retailers. Customers of the business are able to be managed by keeping their data and feedback from time to time. The company is able to manage the relationship with the customers by retaining the existing customers, and being able to manage the relationship with the potential customers and also the organization partners in marketing service and sales. MIS has helped Tread Way Company to collect, record, organize, retrieve and disseminate information or knowledge; this facilitates the information processing in the organization. Such information may include accounting records, procedures that are unrecorded, practices, skills and business documents. According to Jones (2009) MIS helps businesses to link and facilitate the performance of the employees. Electronic communication improves the general level of communication within an organization. People from various units of the business outside branches or within the organization can interact with each other while sharing information that may be vital for the growth and progress of the business. In a nutshell, this promotes both horizontal and vertical communication in the organization. However, Jones (2009) noted that too much interaction of the employees in the organization may result to alienation of some employees as a result of an increase in impersonality. In addition to this, MIS lengthens boundary spanning whereby a legit employee of the organization can access the company’s information over the system data in any department with the help of tools of information technology. Therefore, redundancy is greatly reduced because the need for repetition of the same information is eliminated. There is reduced fallibility of human error because the information concerning the organization is stored in the database. According to Jones (2009). information retrieved from human beings is subject to errors and omissions. With the use of MIS there is storage of information and retrieval hence communication has been made more easy and effective. However, MIS has also led to overload of information implying that the personnel have to sift through the overwhelming data stored to get the information they would need. This slows down the pace at which the decisions are made hence slowing down organizations operations though the problem might not be as serious as such because the problem goes towards documentation. According to Brien (2007). tracking of various functions in the organizations has become efficient by use of MIS since the managers are always informed of the progress of various operations making evaluation be done from time to time for maximum efficiency in production. This has ensured that there is no time wastage hence there is guarantee of maximum production. In such a case the managers are now kept alert in supplying specific information showing the trends that are probable in various business aspects. This has enabled the use of long term prospecting and planning in Tread Way Tire Company. Terry (2005) says that an information reporting system that is disciplined has enabled creation of a database and knowledge base that is structured for everyone in the organization. The structure is made in a way that it can be used by blending and analysis or used straight from the computer systems hence saving the manager’s time to having disseminated the information in various departments. There is more understanding of the company itself as an impact which MIS has created. It utilizes a data dictionary which it attributes to information designation to be generated by the organization. Since all the information of the organization utilize this data base there is commonality in understanding the terms and terminologies of the organization hence bringing clarity in communication processes and a common understanding of organizations events.MIS has enabled streamlining of the operations which may complicate the effectiveness of the business operations. O’ Brien (2007) says that the administration of the business has greatly been improved by engaging discipline in the operations which everybody is supposed to follow and use procedures and system of the business. Therefore as a result of MIS there is higher professionalism in the operations of the businesses in Tread Way Company. Conclusion In conclusion, Management information system has created a positive impact in Management of Tread Way company in both external and internal environment because it has provided information required for internal management and the industry at large to access relevant information for sound decision making and effective operations of various business aspects. MIS has covered employee application, documentation, and technological tools used in business solving strategies. References Jones, P. (2009), Strategic Information Systems Planning, A Journal of Information Resources Management, 11 (2) 133-136 O’Brien, J (2007). Managing Information Technology in the Internetworked Enterprise, A Journal of Management Information System, 9 (5) 22-26 Terry, L. (2005). Management Information Systems, London: Thomson Read More