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The Application Of Mis In Honda


Management Information system is some sort of system which helps in providing information to the organization in order to run successfully. MIS can be seen as a subset of the whole internal control processes in an company which consists of the documents, applications of individuals, technologies and techniques that are being used by management accountants that they use for dealing with business problems like rates or priced at the goods and services (Bidgoli, 2010). Management Information System is different from the other types of information systems because they are applied in examining the operational activities of the organization. Rationally, MIS is used for referring the band of information management techniques applied jointly for the support of decision making process in a company which is Expert Systems, Executive Information Systems and Decision Support systems (Lucey, 2005).

Honda - A processing organization

Honda is the globe largest producer of the motorcycles and inside combustion motors that are measurable by quantity mainly producing more than fourteen million internal combustion engines every year.

With the progress of Honda in the production sector, it has also generated astounding amount of data. Even though IT departments have an edge on the improvement in the hardware components for storing large amount of data, but still the "fact gap" is out there in the Honda to found the needs of useful data at aright the perfect time to make effective and reliable decisions.

For Honda, getting right kind of information is important in today's environment which it had not been required before, therefore reducing costs, enhanced output and maximization of earnings.

Managers of Honda have to administer the intricacy of the supply chain, inner control and making as well as meeting the client and distribution demands. In the current business environment manufacturers are pressured to make effective decisions frequently with the limited information system. Honda has to face mounting globalization, increased competition than before and customers whose needs are shown in their own facts and opportunities of a global market.

Besides maintaining efficient business, Honda is continuing to grow its focus on the info technology. Together with the increasing needs for partnership, connectivity and velocity in the present day economy, Honda has began looking for ways to give authority with their employees in order to work smartly to compete with their competitors in the current market scenario. Any business without the information technology is failed to deliver competitive border and is merely wasting the potential of their individual source. Honda observes this change and adopts useful hardware and software in their company.

MIS -information across various departments

With the introduction of time, internet and the global economy offers so well with one another such that you can find requirement of proactive strategies to be put in place in the organization, thereby, constant interconnection of employees to the net and with one another.

Most of the IT departments are spending their time on budgeting personal computer gadgets, but making choice for the Honda's network hardware infrastructure appears to be a crucial decision. When planning for the network infrastructure for Honda, it is essential to consider the issues like how employees will discuss access to the information, which of the info is important and exactly how to keep it, what is the real demand; could it be for wireless pcs? And what are your strategies for integrating peripherals. Honda's hardware pattern is the essential element for traveling employee's connectivity and collaboration. (Bocji, 2005)

Performance and price will be the key determinants which are there to dictate from where to begin the search. Today's situation for the hardware system includes wide variety of providers or companies like Juniper, Foundry, Cisco and many more. The MIS systems from the most notable manufacturers are useful in providing implausible security and performance but maybe it's expensive for the company. Honda maintains the balance between the price and performance for smartening up their hardware tools. Many companies is there who focus on providing price successful businesses through brand network hardware equipment. For the purchase of new hardware equipment, Honda needs to look its eye wide open for the alternatives that best suits with their company account. Even, proper search should be made regarding potential services and extra support with the hardware accessories purchase. It ought to be sure that the hardware supplier should have a brand while keeping in mind the organizations decisions and pursuits.

The tools of the management information system help the business and its labor force in undertaking the jobs that happen to be related to the processing of information. The cooperation of business systems and MIS pays to in decision making as it collates the development records and business data.

Application of MIS in Honda

Helps in decision making

With the presence of computer everywhere you go, it is hard for just about any business to flee from the utilization than it systems. Some of the areas or departments are there in HONDA where MIS is precious.

While computers are not able to create strategies of their own but nonetheless they can help mangers of the organization in productive decision making process and make them understand the usefulness of strategies. MIS is with the capacity of transforming data into useful information which can be employed in decision making. Even, MIS assists Honda in providing performance studies and financial claims which is efficient for planning, supervising and execution of ideas.

MIS also aids Honda in collating valuable information and change it into rational information which otherwise be pointless as it is impossible to manage amounts of data by hand. With the help of these information, Honda can recognize trends and habits which would be impossible if all the task is done actually. MIS systems utilize the raw data to run replication and answer a variety of theoretical questions such as 'what if' regarding adjustment in strategies. For example, MIS can inform Honda about the effect of alterations in price on the sales with their cars. Because of the Decision Support Systems, Honda can be enabled to make more of the informed decisions within the organizations which normally would be impossible without MIS.

Data collection

Even though MIS helps in collating numerable amounts of business information, however they are also helpful for providing protecting time gain to the employees. On the other hand with the past where data are to b dealt with physically, now MIS quickly examines the data after getting into it into the computer through data cpu. Thus, boosting faster decision making in the organization which is represent in the useful working.

Information system

Everyday business require some or the other kind of information system in the business. Using the computerized system recording and business process management is vital to run the business at a revenue as well as responding to the fluctuations in the market. Management information system, however, are perfect for gathering and confirming information related to the company's business process. MIS allows Honda to review the info and employ the info for achieving the business's objectives. (Clarke, 2007)

Management methods

The information provided by the MIS help the managers to look at the areas or departments where there is dependence on the improvement (Pearlson, nd). What will be the techniques and methods for correcting the business activities will rest on the part of mangers abilities and design of management that is utilized in the business. By using de-centralized management methodology, line mangers are able to make corrections quickly as it needs plenty of autonomy in the management process. Using the centralized management strategy, the power and authority is placed with the most notable management only so that they can take decisions (Stone, 2002).

Resource management

MIS system allows Honda to check out the use of resources to see if they are taking a resources in an effective and efficient manner. Equipments, raw materials, assets, labor plus some other will be the examples of management resources that must be supervised and monitored regularly by the business. With an inefficient use of resources company may be taken back in the competitive environment and could loose competitive advantage over the challengers. This also contributes to the deficits for the company by reducing profit margins and lessening sales.

Decision process

Many of the companies make use of some kind of decision processes when they collected information from the MIS system. Each and every device of data is reviewed and is employed to make decisions regarding operational activities, market developments, profit margins etc. the procedure of decision making consists of all the degrees of management, tends to create most well-informed decisions (Wright, 2009).


Appropriate communication allows professionals to have decisions for the organizations based on the info provided by the MIS. Communication system enables top-level managers to go over the info from the front-line professionals and department level professionals, thus, creating downward circulation of the communication for making decisions. Upward movement of communication is also important for the decision making process which allows front-line managers with an possibility to discuss the info from MIS with the most notable level management. Start communication flow allows Honda to acquire source or information from all the degrees of the management to make informed decisions from the MIS system.

Environmental management

With the establishment of the business enterprise in the global environment, Honda is planning to add environmental management system for constantly improving the routines to be done for the safety of environment. Along with the MIS system, Honda gets proactive to obtain environmental management ISO 14001 documentation for the development functions and other services. (Garson, 2003)

Kinds of MIS

Financial MIS - this MIS suggests days gone by and present information of the Honda and its activities. The financial MIS shows the profits and deficits of Honda, its financial documents to symbolize how well company is going, decisions regarding control of the cost and spending of money.

Manufacturing MIS - this MIS displays the stream of goods and services, raw materials and components of Honda. Fresh goods which are processed on Honda get supervised by this creation MIS. In this way, Honda using developing MIS can reduce and control the price tag on goods and services.

Marketing MIS - this MIS is created for controlling all the areas of marketing like prices, sales, adverts, product innovations, future decision making etc. Marketing MIS aids decisions regarding product appearance of the Honda. It helps the company in boosting customer contacts by planning questionnaires for the reviews by customers about the services of Honda and monitors out the spending practices of the client.

Human Source of information MIS - HR MIS helps Honda in recruiting and selection of candidates. Human Learning resource views the requirements of the individuals, hiring procedures, labor force rules, and training and performance projects. The duty for the Honda's Man Resource MIS is to look at MIS also deals with the exterior and inside information or data. The information regarding the inner working of the Honda can be easily available from the company's network, for e. g. , sales for every single car. The information of the external environment can be collated from:

MIS is however, different from information system and data processing system (Lauden, 2007). Operational information systems just browse the collated data and perform the duties like producing lists of items that are necessary for re-ordering. Data handling systems helps in recording daily ventures like sales of Honda automobiles in a particular month. Whereas MIS assist the managers in analysing and analyzing the info related to the sales showing the pattern and tendencies of diverse products, enabling them to make productive decisions about the product and its own promotion or whether the promotion should be discontinued. It even gathers the external data:

Data on the population shifts - with the upsurge in age of the people, they are less inclined to be enthusiastic about customizing vehicles.

Intelligence about competitor's activities - these details can be compiled from the papers, articles or from market intellect.

Government Legislation - if there is increase in minimum salary, then financial condition would change.

Economic and Public Factors - sales for the automobiles would show up in a specific area where in fact the employer had closed down its seed.

MIS even collates the info regarding formal and informal circulation of the information

Formal Circulation of information is the one when a process is accepted, e. g. downloading it the sales statistics across the several branches. Exterior information can be collected through data debt collectors like Bradstreet and Dun which provides economical data for the commercial and academic organizations. Formal moves of information may also be collected from the individuals who are working on the similar file at different locations, by making use of company intranets and e-mails.

Informal flows of information are provided through reading newspaper publishers or articles, chance conferences, or by enjoying news. The medical care and payroll of the employees.

Facilitation Decision Making at Three Tiers of Management

Management Information System even provides Honda the info on the standard basis. The term MIS indicates three main functions Agreement, Goal and Order. The info system is useful for various purposes and at various levels. Its main uses are:

It helps in strategic planning and its own implementation.

It lessens or reduces the service cycles

Enhances the production of the employees resulting in efficient working

Better knowledge of consumer needs and demands

Lessening the product development and marketing life cycles

Smoothening the improvement of Honda business and re-engineering process.

The use of MIS can be applied across the administration for

Carrying the strategies of plan making

Carrying the study and development

Recognizing the kinds of risk and ways for controlling it

Meeting the required legislative and regulatory requirements

Assessing performance, achievements and quality

Enabling the successful and effective use of resources

Supporting reliable and quick decision making

Providing facts for business transactions

The procedure for decision making is important at various levels in Honda. These are made within the Honda at Strategic, Programs, Operational and Activity level. MIS at Different Levels of Management in Honda:

Senior Management - it directs the older management for planning strategic business plan, provides information for the setting of the Honda business, putting into action policies and strategies, analysis of rivals and evaluation of performance of the employees and the exterior factors that have an influence above the direction of proper plans.

Middle degree of Management - at the middle level, MIS assists managers in performing functional and organizational functions by providing:

Assessment of source usage

Data for operational planning

Data for delivery procedures

Information for synchronization of work units

Ways for handling budget and problem solving

It also allows middle level management for program supervision by

Providing data for employing procedures

Managing resource usage

Scheduling of task and plans

Providing information for administrating programs

Line Management - it allows line managers to control activities of Honda by providing

Information for problem solving

Data to make consistent decision making

And information for tedious service delivery

MIS plays an important role for providing information to the mangers to execute the above functions so as they can make informed decisions (Oz, 2009). The main reason for the Management Information System is the change of data from exterior and internal resources into useful and valuable information that can be used for making effective decisions.

A manger may take two varieties of decision which can be either organized or unstructured structured decisions are recurring decisions and are taken routinely regarding the alternative of a dealer or stock. Whereas unstructured decisions need proper information into the problem, knowledge and analysis for carrying the business processes.

Mangers have to go through different stages while considering the related decisions

Identify the challenge - the MIS provides information about the performance of the departments and where in fact the actual problem is arising

Mull over the solution - proper use of spreadsheet to learn the problem like "what if Scenario"

The solution so chosen is based on the info provided by the MIS and manger's experience.

The solution is then applied and reviewed. At this level, MIS again provides the data according to which solution can be assessed.

MIS - A COMPETENT Mean to control Business Process

Business process management can be termed or thought as the series of activities that are executed running a business organizations which range from planning, leading, managing, monitoring and controlling (Jeston, 2008). The five major functions of professionals of Honda are

Planning - the directive functions for the company like where it will operate, diversifying etc

Organising - it handles the organising of the resources like space, people, services and equipment.

Coordinating - it requires the coordination of the activities of different departments of Honda

Decision Making - what decisions should be taken for the progress of Honda, its products and services, employees and its IT department

Controlling - supervising and monitoring the activities of varied departments of Honda

As a respected company in this global environment, Honda must face several challenges for managing thousands of its existing parts and at the same time qualifying, sourcing and approving services. With the increase in competitive pressure, Honda has chosen management information system for handling their business process in association with qualifying and sourcing new raw materials to be able to meet up with the critical requirements for scheduling (Magal, 2009).


New parts are being sourced constantly causing duplication in the business.

Existing parts must be updated with the altering specs.

For the substitute parts, frustrating search has to be done


With the occupation of management information system, the duplication of parts is easily accepted, thus minimizing surplus inventories or stocks.

With the automation of distributors and recycleables and parts, the business process of Honda has shown efficiency

Search is currently become simpler as trained vendors are providing parts


It provides eye-sight to the professionals to see backlogs and buyer workloads

Now time required for sourcing the parts have been reduced due to MIS

The suppliers and suppliers are continually monitored while assuring exactness and reduction in cost at exactly the same time.

The schedules for the new products are met promptly and is also exceeded by reshuffling the business process

Together with the enlargement of Business functions in Honda, there may be need for more efficient production processes. With all the better and better information and data on the business processes, there's a closer approach to enhance the source chain management which includes all the functions ranging from the sourcing of the raw materials to the production and allocation of the done products. Due to the improvement in management of supply chain, Honda can response efficiently to the changes in the market. With the efficient execution of MIS, Honda can react rapidly to the external environment as well as MIS enable the organisation to provide better and reliable service and products to be able to move ahead of the rivals and enjoying greater share of the marketplace.

While MIS is extremely helpful to generate data examination and statistical records, additionally it is ideal for creating Management by Goals tool. MBO can be an administrative procedure by which managers and their subordinates and co-workers concur on the sequences of aims to be achieved within a establish time frame for the employees. Targets are placed with the SMART approach, that is, the goals should be specific, measurable, agreed, sensible and time-specific.

The main purpose of SMART goals is to give basic indicators through which a business can assess or measure the performance of their employees. To make MBO successful, it's important to observe the improvement rate consistently. For this function, MIS system is best to utilize. As all the SMART goals are measurable as mentioned in its name, the improvement can be tracked by using management information which should be examined by the policy makers.


Every organization includes a number of than one main competency, that is, to have a competitive advantage over their competitors. With the application of skillful management information system, Honda has better chances to be before their rivals. MIS provides necessary tools to Honda to better understand the organization and the external environment or the market.

Management information system can be an approach set out of internal control that helps Honda management in operating working day after day. It is merely not really a tool used for collating the info but allows the managers of Honda along the way of decision making that are used by the management.

With the job of MIS in the organization, Honda has found many great things about it in the system. MIS assist Honda in talking about its objectives and its own resources. It even permits the professionals of Honda for creating accounts about the actions of the company regarding products and services, business partners, people, employees and inventories. It can help in keeping the sources of Honda within an prepared manner. MIS keep track of the data of resources and maintain the within an prepared way.

References -

Bidgoli, H (2010), MIS (2010), USA: Sage Magazines Inc

Bocji, P. & Chaffey, D. , (2005) Business Information Systems: Technology, Development and Management in the E-business: Prentice Hall

Clarke Steve (2007): 'Information Systems Strategic Management: a approach', Routledge Printing, USA & Canada

Garson, G. (2003), Consumer Information Technology, London: Idea Group Publishing

Jeston, J & Nelis, J (2008), Business Process Management (2nd ed. ): Britis Cataloging- in -Publication Data

Laudon & Laudon, (2007), Management Information Systems (10th ed. ): Prentice


Lucey, T. , (2005), Management Information Systems (9th ed. ), Croatia: Zrinski d. d

Magal, S & Term, J (2009), Necessities of Businesses Techniques and Information systems: Library of congress Cataloging- In- Publications Data

Pearlson, K. and Saunders, C. , (n. d. ), Managing & Using Information Systems: A Strategic Approach, 4th ed. , USA: John Wiley & Sons Inc

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