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Levels of Management
Upper or Top or Strategic Management Strategic Middle or Tactical Management
Lower level Management
Three levels of management
Lower or Operational level Management
They make structured decisions (Operational decisions).
Structured decision It’s a predictable decision that can be made following a well defined set of routine procedures. Most decisions at this level require easily defined information that relates to the current status and activities within the basic business functions. Information is gained from detailed reports which contain information about routine activities. Detailed tasks defined by middle management are carried out by people at operational level.
Middle or Tactical Management
Acquire and arrange the resources (Computers, people etc) to meet the goals of an organization. Define the detailed tasks to be carried out at the operational level. Information needed involves review, summarization and analysis of data to help plan and control operations and implement policy that has been formulated by upper management. Information is usually given to middle managers as summarized reports. Deals with semi structured decisions. (Tactical decisions)
Semi structured decisions that must be made without a base of clearly defined informational procedures. In most cases a semi structured decision is complex, requiring detailed analysis and extensive computations.
Upper or Top or Strategic Management
Decides on the broad objectives of an organization. Make unstructured decisions. (Strategic decision).
Unstructured decisions are the most complex type of decisions and are rarely based on predetermined routine procedures. They involve subjective judgments of the decision maker.
Types of Information Systems
•Transaction processing systems (TPS) •Management Information Systems (MIS) •Decision support Systems (DSS) •Executive Information Systems (EIS) •Expert Systems (ES)
•These systems capture and process data about business transactions. •Some times called as data processing systems •Mostly used at operational level •Usually creates detailed reports of daily transactions or future transactions •Reports generated are useful only to lower level managers •One functional area of a business consists of an TPS
Transaction Processing Systems (TPS)
Management Information Systems (MIS) •Provides middle level management with reports that
summarize and categorize information derived from company databases. (In pre determined format) •Supplements Transaction processing Systems •Able to produce detailed information, summary information, exception information •Information produced is based on accepted management or mathematical/statistical models
Decision Support Systems (DSS) users with decision oriented information •Provides its
whenever a decision-making situation arises •Analyses information already captured by TPS and MIS in order to support unstructured decision making at top management level •Facts •DSS does not make decisions, it helps some one to make a decision by providing information •TPS or MIS does not analyze information they produce
Is a DSS which is especially meant for top level management and specifically support unstructured decision making Also called Executive Support Systems (ESS) Information in an EIS are presented in charts and tables that show trends, ratios and other managerial statistics and is stored in data warehouses. Draws data not only from the organization, able to draw information from outside sources such as news services and marketing –research databases.
Executive Information System (EIS)
Expert Systems (ES)
•ES is an information system that captures and stores the knowledge of human experts and then imitates human reasoning and decision making processes for those who have less expertise. •Captures knowledge expertise of a problem solver or decision maker and then simulates thinking of that expertise for those who have less expertise. •Includes logic and reasoning within there respective fields •Emerged from the filed of artificial intelligence (Creating computer systems that simulate human reasoning and sensation)