Information: It constitutes the facts and knowledge gathered about something. It is the detail collected through experience, communication and instructions given by some authority.
Decision making: It is the process of selecting suitable option from the available alternatives according to the present situation and conditions.
A proper Management information system is designed in the organization for effective decision making process. Management information system (MIS) consists of people, procedure followed in the decision making process, interactive communication system in the organization and database of the organizational activities which are crucial for decision making process. The strong information system of an organization backs the experiences of employees and management in the organization which helps in effective decision making (Kirk, 1999). . The basic aim of management information system is to collect information from various sources which are of concern for the working of the organization and segregating the crucial information and then placing the right information in front of the right people. The timely, appropriate information when delivered on time with quality content becomes the key for effective decision making in the organization (Laudon, 2011). The managers today depend on management information system for timely and reality and accurately evaluated information because they are lack of time to analyze every bit of information due cut throat competition.
Effective Decision making process is crucial for the growth of any organization. It helps in the optimal and better utilization of resources available with the company. An effective and efficient decision making process can enable the organization to face challenges and problems of business due to competition. A proper decision taken within correct time frame helps in the achievement of organizational objectives which leads to organizational growth. The efficiency of employees and the organization also increases if the decision making process is effective. Proper decisions if taken in the organization facilitate innovation in the working conditions and the techniques used in the organization. It also motivates employees of the organization to work more effectively and efficiently for the achievement of organizational and personal goals.