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 ?nformation System

@ The purpose of an information system is to collect, store, and

disseminate information from an organizations environment
and internal operations to support organizational functions
and decision making, communication, coordination.
@ ?nformation systems transform raw data into useful
information through three basic activities, input, processing,
and output.
@ ?
 
   provides managers with tools for
planning, forecasting, and monitoring of the business.
There are 4 major functions of manager in management theory i.e.
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x made using a rule, procedure, or quantitative method
x Easy to computerize using traditional information systems
Example: What is the EOQ for raw material Z

Gi



x aecision that deals with unusual or exceptional situations
x Not easily quantifiable
Example: How will consumer react if we lower the price by 10%
p?S
Œ

 : Various management functions ʹ
planning organizing, control.


: aata collecting regarding management
functions, converting them into information regarding
managerial decision making
3)   : aoing things in a systematic way, i.e.,
integrating the managerial functions for achieving
organizational goals.


 
 
@ § management information system (p?S) provides managers
with information that supports effective decision making and
provides feedback on daily operations
@ The use of p?Ss spans all levels of management

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i


i  

 
 
@ ?nternal data sources:
-databases; data warehouses and data marts; specific
functional areas throughout the firm
@ External data sources:
-Customers, competitors, and stockholders, ?nternet.
  i 


 

 

@ 
 
i : produced periodically, or on a schedule

@ ÿ

i : summary of the previous day͛s critical
activities

@ 

i : developed to give certain information at someone͛s
request

@ ¦ i i : automatically produced when a situation is

unusual or requires management action

@  
i : provides increasingly detailed data about a
situation
 unctional aspects of p?S
@ The p?S is an integrated collection of functional information
systems, each supporting particular functional areas.
@ pajor information systems:
Π


 - §ll organization has some kind of
financial information system; this category of information is
regarding the flow of finance/money through out the organization.
The system provides the futuristic look associated with planning.
Budgeting is wholly futuristic.
Some of the subsystem are:
x Cost §ccounting
x General Ledger
x §sset §ccounting
x Budgets
x inancial planning
6) parketing information system
@ The basic areas of the marketing function that can be improved
through information systems are:
x orecasting/sales planning
x parket research
x §dvertising
x Operating and control information required to manage
the marketing function, i.e., sales report, distribution
cost reports etc.
@ § well developed marketing information system help manager to
make better decisions about:
-Pricing
-§dvertising
-Product promotion policy
-Sales force effort, etc.
@ ?t requires both internal information, like sales report and external
information like feedback from the market place.
3) Human resource information system :
@ The HR function consists of tracking existing employee data
which traditionally includes personal histories, skills,
capabilities, and salary. To reduce the manual workload of
these activities, organizations began to automate these
processes by introducing specialized Human Resource
panagement Systems.
@ Human resource panagement System includes:
-Payroll
-Work Time
-Benefit administration
-HR panagement ?nformation System
-Recruiting
-Training/Learning panagement System
@ The 
 
  automates the pay process by gathering data on
employee time and attendance, calculating various deductions and taxes,
and generating periodic pay cheques and employee tax reports.

@ The D 
 

  provides a system for organizations to
administer and track employee participation in benefits programs.

@ c

 

  records basic demographic and
address data, selection, training and development, capabilities and skills
management, compensation planning records and other related activities

@ Online c  is the methods employed by HR departments to gather

potential candidates for available positions within an organization.

@ The 
 
  provides a system for organizations to administer and
track employee training and development efforts.
pinor information systems are:
1) 
 : Some purchasing activities are automated. or
example-
@ ‰pdating order records
@ Handling routine selection/follow-ups
@ Checking history files as means of vendor selection.
6) ¦c: Program Evaluation and Review Techniques, PERT, has become
a widely used information device for controlling the time, cost, and
work in a project or program.
3)  

: This system deals with projections of the future
and uses information systems that utilizes the entire range of
information developed in the company.
4) c


 i : This is a vital area for industrial
companies but of less importance for financial and service
organization.