Organisation and its systems

An organization works at 3 level. First one is top level which is also called Strategic level as because main decisions regarding the organization are taken at this level e.g. Decisions regarding acquisition of new technology or capital advancement.

Organization’s second level is known as Middle level or tactical level . As management use various kinds of tactics, controls and measures for operating the various activities of the organization.

The third and last level is called operational or supervisory level. This is lowest level of managerial hierarchy where the orders of second level are being followed ritually.

Let’s understand these systems one by one:-

1. Transaction Processing system (TPS):- TPS  is the lowest level of management information system and completes the basic requirements of an organization. It helps in recording the transactions and manipulating those transacted data into useful information and making reports.

TPS can be done manually or in computerized format. Principal components of TPS in both formats are :-

1. Inputs:-  e.g. customer sales, slips , invoices

2. Processing:-  enter the data in a required format like  entering all sales data in sale journal

3. Storage:- Ledger and files are used for  storing data for providing the summary of  firm’s financial transactions.

4. Output:- this is the final stage where reports are made from the processed data.

2. Management  Information System ( MIS):- MIS is made of Management + Information + system

a. MIS offers different functions  for different  levels of an organization.

b. As it includes the word manager, it includes the decision on qualitative basis as well, which includes the data of qualitative level and the perception of the managers.

c. Information is processed to provide the decision according to the a set  of rules based on facts , figures and processed symbols.

d. Its expansion form of TPS system. It contains database systems by which super files can be created and which gives right to authorized persons to bring the required change in the data.

3. Management Support System: -  MSS is used by Top level management. There are 3 types of MSS namely :-

a. Decision support System (DSS):- Decision support system helps in solving semi-structured and unstructured  decisions e.g. It helps in  what if analysis, solving problems individually and also in group. User friendly approach of DSS helps in making decisions with higher degree of reliability.

b. EIS (Executive Information System):- EIS also used in synonym with ESS (Executive Support System) helps in summarizing data , computing skills. It also provides online analysis which makes it different from traditional information system. It provides high level information.

c. Expert System:- Expert system comprises Knowledge Base, Interface Engine, Knowledge Acquisition Subsystem and user interface. This provides the highest level of accuracy. It provides user the facility to write the question in its own language which is answered by the huge database in the system. It’s a low cost system i.e. it is used in solving  from complex to elementary situations like medical experts, tax experts and audit experts.

Any kinds of suggestion, comments are truly welcomed.

Regards

Renu