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 non-
programmed 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 5

(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 Strategic planning

Policy making

Manufacturing Manager Purchasing

Raw material distribution
Logistics

R & D Manager Research Thrust

Product development

Finance Manager Investments

Capital goods accounting
Accounting policies and practices

Marketing Manager Marketing Research

Advertisement and promotion
Product distribution and logistics
Pricing and selling policies

Personnel Manager Recruitment and selection

Wage and salary policies

Prof Jha, Davendranath G – Faculty: Information System 6

(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

Data (applying knowledge by Information
selecting, organizing,
manipulating data)

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 Tasks The Flow
Computer Operations Recording Data Collection
Application Development Classifying
Technical Services Sorting Raw Data Input
Corporate Database Calculating
Data Communications Storing Processing
Retrieving
Information Output
Reproducing
Communicating
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 7

(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:

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

Prof Jha, Davendranath G – Faculty: Information System 8

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