Levels of Management Information Systems

Levels of Management Information Systems

The MIS is constructed to serve the various levels and aspects of management activities such that each level of the MIS has a different emphasis

Desired Systems Attributes Decision Oriented: the system should produce out puts in an appropriate way to enable informed decision making Data processing: should maintain the data input checks, controls, timeliness and efficient resource use. Data management: should maintain integrity, independence, and integration of data storage Flexibility: MIS should be sufficiently adaptable to users’ varied and changing needs and behavior. Human Computer Interface (HCI): be user friendly

Categories of MIS There are four main categories of information systems that serve the different levels of management;

Operational-level systems; Operational-level systems support operational managers by keeping track of the elementary activities and transactions of the organization, such as sales, receipts, cash deposits, payroll, credit decisions, and the flow of materials in a factory. The principal purpose of systems at this level is to answer routine questions and to track the flow of transactions through the organization. Knowledge-level systems: supports knowledge and data workers in an organization. Its purpose is to help the business discover, organize, and integrate new technology into the business and to help the organization control the flow of paper work. Knowledge-level systems in the form of collaboration tools, workstations and office automation are the fastest growing applications in business today. Management-level systems: Information systems that supports the monitoring, controlling, decision-making, and administrative activities of middle managers. The principal question addressed by such systems is this: Are things working well? Management-level systems typically provide periodic reports rather than instant information on operations. An example is a relocation control system that reports on the total moving, house-hunting, and home financing costs for employees in all company divisions, noting wherever actual costs exceed budgets.
Some management-level systems support non-routine decision making. They tend to focus on less-structured decisions for which information requirements are not always clear. These systems often answer .what-if. questions: What would be the impact on production schedules if we were to double sales in the month of December? What would happen to our return on investment if a factory schedule were delayed for six months? Answers to these questions frequently require new data from outside the organization, as well as data from inside that cannot be easily drawn from existing operational-level systems. Strategic-level systems; Strategic-level systems help senior management tackle and address strategic issues and long-term trends, both in the firm and in the external environment. Their principal concern is matching changes in the external environment with existing organizational capability, what will employment levels be in five years? What are the long-term industry cost trends, and where does our firm fit in? What products should we be making in five years?

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