2:ORGANIZATION STRUCTURE AND INFORMATION NEEDS

The management can be broadly classified, depending upon the requirements of information for performing their managerial responsibilities, into Top Management (Strategic): The main responsibilities are: i) Determining the overall goals and objectives of the business. ii) Dealing with long term plans, policy matters and broad based strategic planning. iii) Establishing a framework within which the various departments should work. The information used is futuristic and external in nature (political, economical, social, technological, ecological, legal). It receives the summary from the middle management and the decision made at this level is nonprogrammed but strategic. Middle Management (Tactical): The middle management is concerned with elaborating, classifying, and transforming of organizational goals into actions and plans. It deals with matter from a practical point of view (pragmatic approach) and formulates operating policies and procedures for the guidance of the supervisory personnel. The information is fed from the top management as well as the supervisory management and is internal in nature. It needs information for short-term planning. Supervisory Management (Operation): The supervisory management deals with the operational plans, policies and procedures for transforming or converting inputs to outputs. It is responsible for day-to-day routine decisions and operations of the organization. The information is received from the middle management and is mostly internal in nature. Decisions at this level are usually routine, structured and programmed. The functions and processes are standardized.

Prof Jha, Davendranath G Faculty: Information System (For Private Circulation Only)

Transaction Management (Data Processing): A transaction is an activity that takes place within an organization., for e.g., making a purchase or manufacturing a product or recruiting an employee The main responsibilities at this level are i) Recording each and every transaction. ii) Maintenance of database. iii) Generate and provide information to various users at all level of management. i.e., the major tasks at this level are Action Direct a transaction to take place Informational Report or explain the performance Investigational Communicate the transaction for background information or reference The information more often is internal in nature but can also involve external agency. It is more concerned with functions like report generating, inquiry and creating support applications. The are more routine and are in programmed form.
The Information system is expected to support all the managers in their effort to bring about quick and effective decisions. The most common area where MIS assist the managers are: Top Executive Manufacturing Manager Strategic planning Policy making Purchasing Raw material distribution Logistics Research Thrust Product development Investments Capital goods accounting Accounting policies and practices Marketing Research Advertisement and promotion Product distribution and logistics Pricing and selling policies Recruitment and selection Wage and salary policies

R & D Manager Finance Manager

Marketing Manager

Personnel Manager

Prof Jha, Davendranath G Faculty: Information System (For Private Circulation Only)

DATA PROCESSING
Data is the collection of facts, which is unorganized but can be changed into the organized form as an in formation. This conversion of facts into meaningful information is known as data processing.
The transformation process (applying knowledge by selecting, organizing, manipulating data)

Data

Information

What is important is not so much where the data comes from or how it is processed but whether the results are useful and valuable. Data Processing plays a significant role; it involves development of major applications, ongoing operation of production systems, operating of corporate database, and cost control over major system expenditure. Data Processing Involves Computer Operations Application Development Technical Services Corporate Database Data Communications Tasks Recording Classifying Sorting Calculating Storing Retrieving Reproducing Communicating The Flow Data Collection Raw Data Input Processing Information Output End User for Decision & Action

Defining and organizing relationship among data creates information. The value of information is directly linked to how it helps in decision makers achieve their organizations goals. For example, the value of information might be measured in the time required to make a decision or in increased profits to the company. The characteristics of valuable information are Accurate, Complete, Economical, Flexible, Reliable, Relevant, Simple, Timely, Verifiable, Accessible, And Secure.

Prof Jha, Davendranath G Faculty: Information System (For Private Circulation Only)

INFORMATION SYSTEM

BIZ PLAN

INFORMATION ORGANISATION STRUCTURE BUSINESS PROCESS

THE PURPOSE OF AN INFORMATION SYSTEM

The Information system can be defined as a set of interrelated components that collect, manipulate and disseminate data and information and provide a feedback mechanism to meet an objective. A system consists of four components namely., input, processing, output and feedback. The input is the activity of gathering and capturing raw data. The processing involves converting or transforming data into useful outputs. The output involves production of useful information, usually in the form of documents and reports. The feedback is output that is used to make changes to input or processing activities. The system boundary defines the limits of a system and distinguishes it from everything else (the environment). The way system elements are organized or arranged is called configuration.

Review Questions: What are the information needs of various levels of managements? State the important characteristics of different levels of management. 1. How would you distinguish between data and information? Information and knowledge? 2. What do you mean by data processing? 3. Identify the characteristics of valuable system. 4. Define the term system. How are system classified?

Prof Jha, Davendranath G Faculty: Information System (For Private Circulation Only)