Organizations are mainly divided into three types of information systems: strategic, management and operational which provide different information on an organization’s needs. The levels mentioned above are further divided into the production and manufacturing department, marketing and sales department, and human resources department. The systems are built to cater for the different organizational interests (Jankowicz,2006, p.481).
SECTION 1: Operational Level Systems
Transaction Processing Systems
Operational level systems are made up of Transaction Processing Systems whose main purpose is to surveil simple straightforward operations and transactions in an organization, for example, cash deposits, sales, payroll, credit decisions, receipts and the flow of materials in a firm. The key role of systems at the operational level system is to give answers to accustomed questions like for example parts of an inventory and track the flow of different types of transactions within the organization. Transaction Processing systems play a key role in the management of an organization as discussed below (Layne. K and Lee. J, 2001, p.129).
The system that is the Transaction Processing System plays a key role in supporting the transactions and operations of an organization by processing the company’s business transactions. The system is used is in the sales and marketing department to be specific in order processing. A good example is an online electronic store where order processing takes place; the sorting, packaging, movement and delivery of the packed electronics to a shipping carrier after the order has been placed successfully. The System is crucial here for the analysis of the transactions in play ranging from orders from customers, invoices, receipts, and payments, to the precise processing of the operations such as data collection, modification, editing and storage of data (Nevis, E.C., et.al, 2006, pp.54).
The Transaction Processing System is also crucial in the manufacturing and production department and specifically the Material movement Control. The Transaction Processing System aids in the management of the basic stages of handling; collection of materials, manufacturing and product distribution by keeping detailed inventories and reports that summarize and simplify the transactions within the manufacturing and production department. Other transactions may involve data retrieval from a database involving any stage of handling in the department or checking for missing data items, for example, production records.
The Transaction Processing System is also key to the finance and accounting department of any organization and specifically in terms of payroll and accounts payable. The Transaction Processing system plays a major role in providing information on the different types of accounting systems for example the payroll accounting system which supplies information to the organization’s general ledger system which in turn is in charge of managing records of the organization’s expenses and income and hence providing reports like accounts payable, profit and loss statements, and balance sheets.
The Transaction Processing System also plays a crucial role in the human resources department and mainly in employee record keeping. The system is responsible for updating employee reviews, contact information, disciplinary forms, employee awards, training records and termination letters which are all key in employee record-keeping for analysis of performance and growth in the organization.
SECTION 2: Management Level systems
Decision-Support Systems and Management Information Systems
Middle managers’ monitoring, decision-making, controlling, and administrative operations are all aided by the Management Level Systems. They provide information on operations on a regular basis rather than in real time. The Systems are made up of the Management Information System (MIS) and the Decision Support Systems (DSS). At the management level, Management Information Systems play a key role in planning, managing, and making decisions. The Decision Support System on the other hand is critical in making unique decisions that are constantly changing and difficult to predict in advance.
The systems play a key role in the sales and marketing department and specifically in the analysis of sale management and sale region analysis. The Decision Support System and the Management information system in marketing are systems used to identify and venture into different scenarios by the manipulation of preexisting data from past events. They include system tools, marketing data, and modelling capabilities. These tools aid in the prediction of outcomes from different marketing strategies and scenarios. Both systems provide information on business performance for example in this situation sales where the systems do it continuously and update the information about long-term trends.
A crucial role is played by the systems in the Manufacturing and Production department, specifically in inventory control and production scheduling. The systems have powerful software platforms which track the production of raw materials into finished goods. The systems help in the control of various variables; from the inputs to the support services, to machines and finally the personnel. The systems are also responsible for the movement of inventory from one workstation to another. The main role of the systems is to provide information key to decision-makers in the facilitation of the smooth running of operations within the department.
The Systems are important in the Finance and Accounting Department, specifically in the annual budgeting and profitability analysis. The systems facilitate the automation of computerized procedures in public financial management. The measurable functions of the systems include budget formulation, accounting, implementation and reporting, cash/ debt management, profit analysis, treasury operations among others. The Strategies within the systems are enhanced to significantly promote equity and quality in the organization’s operations and provide a huge potential for greater enhancement openness and accountability. A good example of a leading provider of financial and accounting information is the World Bank.
A vital role is played by the systems in the human resources department and specifically in the relocation cost control and contract cost analysis. The systems perform a cost-benefit analysis on the human resource department through the relocation of cost control and contract cost. The reasons for these human resource costs are for measuring overall success and impact, monitoring departmental costs, calculating a return of investment (ROI)and predicting future costs. The cost-benefit analysis in this department makes clear the data from the Human resource department more clear, rational and systematic (Jankowicz.D,2000, p.480).
SECTION 3: Strategic Level Systems
Executive Support Systems
Systems at the strategic level aid in the management of strategic and long-term trends in the firms and external environments. The system tries to align changes in the external environment with organizational capabilities already in place. The systems are made up of the Executive Support System which is intended to include information about external occurrences, for example, competitors or new set tax laws and further draws summarized information from DSS and MIS. (Deschouwer. K, 2006, p.295)
The Executive Support System plays a key role in the sales and marketing department and specifically trends for example 5 years of trend forecasting obtained from the sales and marketing department. The System filters, compresses, and tracks data in the sales and marketing department and the software within the system provides graphs and data necessary for the analysis of different trends in the department hence aiding in decision making. It further does acquisitions on the cyclical trends and swings in the department and hence provides easy to use interface graphics for further analysis.
The Executive Support System also plays an important role in the manufacturing and production department for example in the creation of a 5-year operating plan in the department. The system addresses strategic issues in the department and comes up with both the firm’s and the environment’s long-term trends, which further aids in the development of an operating plan necessary for smooth running of operations within the department for a specified period for example, in this case, 5 years.
The Executive Support System also plays a key part in the finance and accounting department specifically in profit planning. The system acts as a tool in finance by providing an algorithm meant to run and analyze profit costs, installation costs keeping in mind other external factors outside the firm. The system can lead to profile improvement within the department through the optimal creation and analysis of profit planning models necessary for decision making by the managers within the firm. The system uses principles of a technique used for obtaining and optimizing the indicator characteristics within the department to come up with a standard profit planning model necessary for the smooth running of operations within the firm. The system also allows for employees to convert enterprise data into executive-level reports that are easily accessible such as profit planning reports.
The Executive Support System also aids in some activities within the human resources department specifically in personal planning. The system puts in place a software platform that acts as a focal point for the connection of employees within the organization. The system also enhances personal thinking and decision-making and thus personal planning. It further promotes competitiveness within the human resource department thus promoting work morale and determination among employees and thus personal planning. (Moliterno, T.P. and Mahony, D.M., 2011, p.451).
The systems named above all integrate and co-relate to perform various functions within an organization. All of the other systems rely on data from the transaction processing system which is the main source of data. All data from the lower-level systems is sent to the Executive Support System. Many of the other systems choose to exchange different types of data with one another. As noted, information sometimes might be interchanged among the systems which in most cases may be performing different functions in different areas within a firm.
It is therefore critical to integrate all of these systems within an organization in order to improve the easy flow of information across different levels of the organization and so offer management with an enterprise-wide view of how the business is operating. This helps curb the major challenges common to many organizations which are typically saddled with thousands of consuming and complex systems. As a result, any organization should balance its needs for various integrating systems while keeping in mind the difficulties of establishing large-scale systems with integration effort in mind. Finally, organizations should critically consider when choosing a level system because it’s a reflection of the firm’s organizational structure.
References
Nevis, E.C., DiBella, A.J. and Gould, J.M., 2009. Understanding organizations as learning systems. In Knowledge, groupware and the internet (pp. 43-63). Routledge.
Deschouwer, K., 2006. Political parties as multi-level organizations. Handbook of party politics, pp.291-300.
Jankowicz, D., 2000. From learning Organization’toAdaptive Organization’. Management Learning, 31(4), pp.471-490.
Layne, K. and Lee, J., 2001. Developing fully functional E-government: A four-stage model. Government information quarterly, 18(2), pp.122-136.
Moliterno, T.P. and Mahony, D.M., 2011. The network theory of organization: A multilevel approach. Journal of Management, 37(2), pp.443-467.
Swerissen, H. and Crisp, B.R., 2004. The sustainability of health promotion interventions for different levels of social organization. Health promotion international, 19(1), pp.123-130.
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