Introduction to Management

Chapter Summary

Information is one of the most important resources for managers. It adds to the knowledge a person has about an entity of interest. For information to be useful to managers, it must possess certain attributes, which include accuracy, timeliness, relevance and completeness. An information system is a set of interrelated components working together to provide useful information as needed by problem solvers and decision makers.

The five components of an information system are: hardware, software, people, data, and procedures. There are five major types of information systems that serve the needs of different levels of managers in an organization: transaction processing, office automation, management information, decision support and executive support. A transaction processing system is a computer-based information system that records and executes the routine day-to-day transactions required to conduct an organization's business.

An office automation system facilitates communication throughout the organization and increases the efficiency and productivity of managers and office workers through document and message processing. A decision support system is an interactive computer system that provides managers with the necessary information for making decisions. An executive support system is a computer-based information system that supports decision-making at the top levels of an organization. A management information system is a system that gathers data and organizes and summarizes it in a form that is of value to managers.

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