Explain how different hierarchy of management will be benefited with the computer based Information System.

A Management Information System ICT Revision Questions and Answers

Computer based information system is the integrated form Information Technology which collects the data from different sources, process those data to generate the information and thus obtained information optimizes the organizational procedures. It provides customized information to different hierarchy of management as and when required.
There are three level of management hierarchy which uses information system to enhance their efficiency. Those levels are:
• Top Level Management
• Middle Level Management
• Operational Level Management

Top Level Management:

Top level management is defined as a set of management position which is concerned with the overall task designing, directing and managing the organization in an integrated manner. In broader sense the job of top level management can be categorized in two ways: external and internal.
Computer based information provides following types of information to the top level management.
• analysis of the competitive activities related with the rivalry
• analysis of customer preferences
• analysis economic trends, legal rulings and technological changes
• analysis of historical sales, costs and other relevant parameters

• analysis profit, cash flow, divisional income, sales, expenses
• analysis financial ratios, interests; credit outstanding etc

Middle Level Management (Tactical Level):

Middle management is defined as group of management position which trend to overlap the top and operational management level. Middle level management is mainly focused on supervision and monitoring of the operations and the administrative work in the sense that it is responsible for the elaboration, classification and maintaining operation of organization goals. Following information are provided the IS to the middle level management to enhance their performance.
• Information about the price changes, shortages of products and raw materials,
• Information about the demand and supply, credit conditions
• Organizational performance indicators, over-under budgets
• Information about the sales, incomes, profits/loss etc.

Operational Level Management:

The operational level of management is defined as the group of those management staffs which are responsible to carry out the day to day works and the execution of the actual operation of office. The operational level management mainly concerned with the implementing operational plans, policies and procedures for the purposes of conversion of inputs and outputs. IS provides following information to the operational level management.
• Customer details, staffs details, products details.
• Units sales, expenses, stocks, staffs attendances.
• Current performances, operational level efficiencies and inefficiencies, input-output ratios, maintenance reports. Etc.

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