Referring to Freetutes.com
Information systems differ in their business needs. Also depending upon
different levels in organization information systems differ. Three major
information systems are:-
1. Transaction processing
systems
2. Management information
systems
3. Decision support
systems
Figure 1 shows relation of
information system to the levels of organization. The information needs are
different at different organizational levels. Accordingly the information can
be categorized as: strategic information, managerial information and
operational information.
Figure 1 - Relation of
information systems to levels of organization
The second category of
information required by the middle management is known as managerial
information. The information required at this level is used for making short
term decisions and plans for the organization. Information like sales analysis
for the past quarter or yearly production details etc. fall under this
category. Management information system (MIS) caters to such information needs
of the organization. Due to its capabilities to fulfill the managerial
information needs of the organization, Management Information Systems have
become a necessity for all big organizations. And due to its vastness, most of
the big organizations have separate MIS departments to look into the related
issues and proper functioning of the system.
The third category of
information is relating to the daily or short term information needs of the
organization such as attendance records of the employees. This kind of
information is required at the operational level for carrying out the
day-to-day operational activities. Due to its capabilities to provide
information for processing transaction of the organization, the information
system is known as Transaction Processing System or Data Processing System.
Some examples of information provided by such systems are processing of orders,
posting of entries in bank, evaluating overdue purchaser orders etc.
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