Mention the factors on which information requirements depend. Discuss the information requirements at top, middle and lower levels of management.

A Management Information System ICT Revision Questions and Answers

Answer
Factors on which information requirements depends are:
(i) Operational function:
The operational functions comprise the actual task to be done. E.g. Cash issuing when check is submitted

(ii) Types of decision making:
The decision to be done. This type of information requirement is generally applicable in decision making system for the supervisory level and executive level.
(iii) Level of management activity:
Different hierarchy of management has different task to do. For this the information needs are also differ. E.g teller needs information of customer whereas supervisor needs the information of total deposit and total collection.

Information needs of the top level management are:
External needs: Competitive activities, customer preferences technological changes, legal rulings, economic trends, etc.
Internal needs: Historical sales, costs, profit, cash flow, divisional income, expenses, interests, long term debt, cost updates, etc.

Information needs of the middle management (tactical level) are:
External: Price changes, shortage demand or supply, credit conditions etc.
Internal: Descriptive information, current performance indictors, over under budgets historical profit, sales, income, etc.

Information needs of Lower level management Operational Level:
External: material supplies and sales and their changes.
Internal: Unit sales and expenses, current performance, shortages and bottlenecks, input output ratio, maintenance report, operating efficiencies and inefficiencies, etc.



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