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Characteristics of a System:
• Organization • Interaction • Interdependence • Integration • Central Objective
Organization-It implies structure and order.
Interaction-It refers to manner in which each component functions with other
components of the system.
Interdependence-Units/parts are dependent on each other.
Integration-The parts of a system work together within the system even though
each part performs a unique function.
Central Objective-Objective may be real or stated. All the components work
together to achieve that particular objective.
Concept of Decision Making
Everybody makes decisions. It's a natural part of life, and most of the time we don't even
think about the process. In an organization, decisions are made at every level. The level at which
the decision is made can also determine the complexity of the decision in relation to the input of
data and output of information.
Decision Making and MIS
Decision-making means making a choice among the given choices by a manager or a
decision-maker. The decision-making process lets a manager come to a conclusion about a given
situation. Therefore, decision-making may be defined as a process of selecting an optimum and
best alternative from a couple of given alternatives to accomplish a particular task. Decision-
making process is the core of managerialaccomplish a particular task. Decision-making process
is the core of managerial functions in MIS. It is said that the decision-making process considers
two or more alternatives from which a final decision could be made. But if only one alternative is
available, then no decision could be made. A decision-making process involves the entire
process of establishing goals, defining activities,searching for alternatives and finally the
development of plans. In addition, the decision-making process includes all the activities of
problem-solving, co-coordinating, information processing and evaluating of alternatives that
usually precede a decision. A decision is an end or the final product of the decision-making
process that represents a behaviour selected from a number of possible alternatives.
TRANSACTION PROCESSING SYSTEMS
An efficient transaction processing system is a pre-requisite for developing efficient
management information systems. A transaction may be defined as an activity, such as making a
purchase or a sale, manufacturing a product,promoting an employee and so on. Thus the concept
of a transaction as used in Information systems is wider as compared to its usage in accounting
systems where a transaction involves transfer of money or money's worth (goods or services)
from one entity to another. Performance of a transaction requires records to:
1. Direct a transaction to take place.
2. Report, confirm, or explain its performance
3. Communicate the transaction to those needing a record for background information or
reference.