CHAPTER 11 - INFORMATION SYSTEMS

                SUMMARY CHAPTER 11

ORGANIZATIONAL INFORMATION FLOW

• is an organization through functional areas and between management levels. 

Functions

• Organization have separate departments to perform 5 functions :

1. Accounting - tracks all financial activities and generates periodic financial statements.
2. Marketing - advertise, promotes, and sells the product or service. 
3. Production - makes the product or service using raw materials and people to turn out finished goods.
4. Human Resource - finds and hires people, handles such matters as sick leave, retirement benefits, evaluation, compensation, and professional development. 
5. Research - conducts product research and development, monitors and troubleshoots new products. 

Management Levels

• The three basic management levels are : 

1. Supervisors - manage and monitor the employees or workers. Thus, these managers have responsibility relating to operational matters. 
2. Middle management - Middle-level managers deal with control, planning (also called tactical planning),  decision making. and implement the long-term goals of the organization. 
3. Top management - Top-level managers are concerned with long-range planning (also called strategic planning), and to plan the future growth. 

  http://www.managementstudyguide.com/management_levels.htm

 Information Flow

• Information flows within an organization in different directions: 

1. For top-level managers, the information flow is primarily upward from within the organization and into the organization from the outside. 
2. For middle-level managers, the information flow is horizontal and vertical within departments. 
3. For supervisors, the information flow is primarily vertical.  

INFORMATION SYSTEMS

• There have four kinds of computer-based information systems:

1. Transaction Processing Systems (TPS) - also known as data processing systems, record day-to-day transactions. Example is in accounting which handles 6 activities : sales order processing, accounts receivable, inventory control systems, and purchasing, accounts payable, payroll, and general ledger. General ledger is used to produce income statements and balance sheet. 
2. Management Information Systems ( MIS) - produce predetermined periodic, exception and demand reports. Management information systems use database management systems to integrate the databases of different departments. 
3. Decision Support Systems (DSS) - enable managers to get answers for unanticipated questions. Teams formed to address large problems use group decision support systems (GDSS). DSS consists of the users, systems software, data - internal and externals, and decision models. Three types of decision models are strategic, tactical, and operational. 
4. Executive Support Systems (ESS) - assist top-level executives. An executives support system is similar to MIS or DSS but easier to use. ESSs are designed specifically for top-level decision makers. 
5. Other Information Systems

• Office automation systems (OAS) - support data workers whoa re involved with distribution and communication of information. Project managers and videoconferencing systems are OAS. 
• Knowledge work systems (KWS) - support knowledge workers, who create information. Many engineers use computer-aided design/computer-aided manufacturing (CAD/CAM) systems. 

Citation :

• COMPUTING ESSENTIALS COMPLETE 2010