Page 10 - Management Information System_Neat
P. 10

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.
   5   6   7   8   9   10   11   12   13   14   15