Tuesday, 31 July 2012

LIMITATIONS OF MIS


 Limitations Of MISi]
A Management Information System (MIS) is a valuable tool company management uses to gauge the effectiveness of their business operations. The MIS can provide detailed insight to certain portions of a company and also assist management with making critical business decisions. While the style and format of the MIS has changed over the years, its use in management decisions has increased greatly.

The Facts

An MIS is one method a company uses to obtain reliable information regarding its business operations. The MIS should not be concerned with whether the information can be retrieved, but rather how and what information should be retrieved so management can make effective decisions. Once information is provided through the MIS, decisions can be made regarding the effectiveness of business operations. Limitations do exist with an MIS, such as the expense to create and implement an MIS, training time for employees, lack of flexibility and capturing wrong or incomplete information.

MIS Expense
MIS implementation can be very expensive for companies looking to manage their operations more effectively. All divisions and processes must be reviewed when determining what information management wants extracted for decision purposes. The cost of this review followed by the installation costs can be extremely expensive for large companies. Additionally, new employee hiring or employee training related to the MIS can also add to the implementation costs.



Employee Training
Properly trained employees are a critical part of an MIS. Employees are at the front lines of business operations and create or manage the daily activities of the company. If an MIS finds a system flaw or management decides to change a process based on the MIS information, re-training employees will usually be required. The length and depth of the training may vary, making it difficult to estimate the cost of this training. Management will also have to account for the lost productivity during this training period.

MIS Flexibility
Once an MIS is created and installed in a company, it may prove to be an inflexible system. Making changes quickly to reflect fluctuating business operations may not be possible depending on the MIS style and functionality. While correcting policies such as internal controls or operating procedures may be easy, company-wide changes such as service changes, production enhancements or marketing strategy may not be simple. Major business changes will require major changes to the MIS, leading to increased costs and downtime of information reporting.

Information Flaws
The MIS is designed to provide information to management so sound decisions can be made regarding company operations. The biggest flaw an MIS can have is pulling incorrect or inadequate information for management. This problem results in wasted time and money for the company, leading to another review of the MIS to correct the information flaws.


I) Unemployment - While information technology may have streamlined the business process it has also crated job redundancies, downsizing and outsourcing. This means that a lot of lower and middle level jobs have been done away with causing more people to become unemployed.

II) Privacy - Though information technology may have made communication quicker, easier and more convenient, it has also bought along privacy issues. From cell phone signal interceptions to email hacking, people are now worried about their once private information becoming public knowledge.

III) Lack of job security - Industry experts believe that the internet has made job security a big issue as since technology keeps on changing with each day. This means that one has to be in a constant learning mode, if he or she wishes for their job to be secure.

Dominant culture - While information technology may have made the world a global village, it has also contributed to one culture dominating another weaker one. For example it is now argued that US influences how most young teenagers all over the world now act, dress and behave. Languages too have become overshadowed, with English becoming the primary mode of communication for business and everything else.
1. Highly sensitive and requires constant monitoring
 2. Budgeting of Budgeting extremely difficult
 3. Lack of flexibility to update itself
 4. Lots of time required to construct or prepare MIS
 5. Constant training required.
 6. In depth study or required training has to be carried out before designing the software.
 7.Organizational change: Difficult to adapt in new settings for Human resource i.e. Employees.
 8. Quality and reliability of the available information.
 9. The expense to create and implement an MIS,
 10. Training time for employees,
 11. Capturing wrong or incomplete information.
 12.Sometimes when the information is wrong, it create chaos in organisation.
13. Highly sensitive and requires constant monitoring
 14. Budgeting of Budgeting extremely difficult
 15. Lack of flexibility to update itself
16.Organizational change: Difficult to adapt in new settings for Human resource i.e. Employees.
 18. Quality and reliability of the available information.
 19. The expense to create and implement an MIS,
 20. Training time for employees,
 21. Lack of flexibility and
 22. Capturing wrong or incomplete information
23.MIS incorporates a wide variety of knowledge areas.
 24.Both technology and technology-related products are evolving at an extremely fast and unpredictable pace,
 25.Many of the terma used in MIS environments ate imprecise and controversial,
 26.MIS problems often are not east to define or structure,
 27.The body of knowledge in MIS is relatively recent and scarce
 28.A lack of rapport often exists between MIS personnel and management and also between MIS personnel and users
                                                                                        


[i]Submitted by:Kichu Thomas,Jenner
Class:II year BBM

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