The concept of management information system defines a mixture of several management practices of, information systems and theories which give rise to a single product. There are different definitions based on the type of system available in any given organization. Some of these definitions include the following: a computer established data system and a system that provides information support for any decision making to the organization (Laudon, Laudon & Brabston, 2005).
The impact of management information system on any given function is in its management. When there is a good support, the business marking, production, finance and personnel become more efficient. The functional objectives are easy to manage when the whole system is being permanently observed and controlled.. If different managers are aware of the progress, achievements and shortfalls of the given organization, it will help in projecting and long- term estimation in planning. The attention of managers is drawn to an anomalous situation making them take corresponding action (Laudon, Laudon & Brabston, 2005).
As regards the abovementioned topic, two organizations will be compared: a well-established hospital and a supermarket. Supermarket like Wal-Mart requires a well-organized management information system of structured data and a knowledge base to be available for all the personnel. The information can be accessible both on its own and in conjunction with other analysis and therefore it saves the manager’s time. The management information system in a supermarket exerts another influence on the organization which relates to the understanding of the business itself. The management information system begins with the representation of a data object and its attributes. It uses a reference of data, entity and properties respectively outlined for information generation in the business. Since all the data system uses the lexicon, there is general understanding of expressions and terminology in the company which brings certainty in the communication and understanding of the organization. The system calls for a systemization of the business operation for an efficient system layout.
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A well-designed system with a focus on the manager makes an influence on the administrative efficiency. The fund of knowledge motivates an informed manager to utilize a diversity of tools of the management. It enables them to opt for such operations as molding and experimentation. The implementation of computer technology allows them to utilize the tool systems which are difficult to use manually. The ready-made sets allow this business to be manageable. Thus, the managerial capacity will improve. It also considerably enhances the decision process. Since the managerial data system operates on the basic systems such as transaction processing and databases, the work of the clerical worker is registered to the computerized operation, relieving the human mind from complicated calculation and allowing it to be engaged in more creative work. It is reported that a lot of manpower is involved in this activity. Having observed the individual’s time utilization and its application; it has been found out that seventy percent of the time is spent in searching, reporting, processing and transmitting. This results in large expense in the organization. The management information system has a direct impact on these charges. It creates an information- based work culture in the organization (Shim & Siegel, 2005).
In a well-established hospital like the JFK Hospital, management information system has been used for various purposes. In the economic environment, the management information system is employed to monitor the capital, labor, productivity, monetary policy and customers. Under capital, the hospital needs both a long and a short-term capital support. The resources can be either from the inside sources or acquired from the financial establishments. The price changes for the services offered in a hospital occur in the economy for various reasons, e. g. decrease in demand and supply, the variations in the buyer’s behavior concerning the expenditure pattern and money supply. The price changes affect the cost of services and labor. In the given hospital at any time, the system has to establish the number of patients being treated whether as inpatients or outpatients, the amount of money paid by either patient either by cash or through an insurance company, the number of personnel in the hospital. Such a system makes it easy to run the hospital at any given time (Shim & Siegel, 2005).
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In both systems, management information system is a database of information organized and programmed to the effect that that it generates regular records on transactions for every level of authority in a company. It is normally also reasonable to obtain specific reports from the system easily for the day to day decision making. The main purpose of the management information system is to give the supervisors feedback about their own performance so that the top management can monitor the organization as a whole. The information displayed by the management information system shows the actual data on the planned results to see the goal progress. The management information systems in both organizations receive data from the different department units and offices. Some data are collected automatically from the computer-linked check-out counters while others are typed in at intermittent intervals. Daily reports are preprogrammed and run at interludes or on request while others are acquired through built-in query semantics. Presentation functions built into the system are used by managers to supervise the status at the desk-side computers connected to the established computer systems by networks (Torode, 2002).
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Viewing the supervision as a scheme allows studying different important variables, restrictions and their interaction with one another. It forces the assigned managers to check the given scenarios in order to consider the outcomes arising out of the interaction with the customers. The process of management explained earlier consists of steps which are rationally linked with each other. In the setting of the management information system, the comprehensive control approach is the most efficient one (Torode, 2002).
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