CATEGORIES OF INFORMATION ON THE BASIS OF NATURE AND CHARACTERISTICS

INFORMATION Information is nothing but refined data. Data before processing is said to be raw data. Raw data are collected, screened and processed to make it organized for effective use. Information is data that has been processed into a form that meaningful to the user in effective interpretation and decision making. Information involves communication and reception of intelligence. Information consists of data, text, images, voice etc. INFORMATION SYSTEM An information system (IS) can be any organized combination of people, hardware, software, communication networks, data resources, and policies and procedures that stores, retrieves, transforms, and disseminates information in an organization. Information system has become as integrated into our daily business activities as accounting, finance, operation management, marketing, human resource management, or any other major business function. Information system and technologies are vital components of successful business organization. Information technologies, including Internet- based information system, are playing vital and expanding roles in business. Information technology can help all kind of businesses improve the efficiency and effectiveness of their business processes, managerial decision making, and workgroup collaboration, which strengthens their competitive position in rapidly changing marketplaces. Information enables us to determine the need to create new products and services. Information tells us to move into new markets or to withdraw from other markets. In a business organization without information, the goods do not get made, the orders are not placed, the materials are not procured, the shipments are not delivered, the customers are not billed, and the business cannot survive. Normally in a business an information system is a computer system that provides management and other personnel within an organization with up-to-date information regarding the organizations performance; for example, current inventory and sales. It usually is linked to a computer network, which is created by joining different computer together in order to share data and resources. It is designed to capture, transmit, store, retrieve, manipulate, and or display information used in one or more business processes. Those systems output information in a form that is useable at all levels of the organization; strategic, tactical, and operational.

CHARACTERISTICS OF INFORMATION Specific objective: The information system should have some specific objective. In a business environment, the objective will be sharing information from different functional areas and smooth flow of information for management decision making. Structured: An information system should have a defined structure. The structure of information system refers to representation of information by showing sub-systems, their inter-relation and the procedure to be followed to fulfill the process requirement. Accuracy: Accuracy is the most important ingredient for quality of information. Information needs to be accurate enough for the use to which it is going to be put. The degree of accuracy depends upon the circumstances. Integrated: An information system should be designed in such a way that proper integration among subsystems is taken care to correct relation and generate meaningful information. Reliability or objectivity: Reliability deals with the truth of information or the objectivity with which it is presented. Understandability: The information must be presented in a form that users can interpret the same for decision making Completeness: Information should contain all the details required by the user. Otherwise, it may not be useful as the basis for decision making. Presentation: The presentation of information is very important to the user. Well presented information is very easily to access the users and helps in decision making.

NATURE OF INFORMATION Formal information Formal information means the information is presented in a structured and consistent manner. In an organization these structure are well defined and all the members are followed it. It is also usually the main way of communicating externally from an organization. The main methods of formal communication are the formal letters, properly structured reports, writing of trading materials, financial reports, accounting system etc. Informal information The informal information has no specified structure and the information that is transmitted within an organization or between individuals who usually know each other. In an organization the informal information are unofficial in nature, and it is communicated through casual conversation, email, or text message between members. Quantitative information This is information that is represented using word. Any event or object that is represented using words to describe its attributes is an example of quantitative information.

CATEGORIES OF INFORMATION SYSTEM Now a days the business organization classified or categories the information system on the basis of their functions and operations. Mainly the information systems are classified as either operations or management information system. 1. OPERATION SUPPORT SYSTEMS The operations support system produces a variety of information products for internal and external use. The role of a business firms operation support systems is to process business transactions, control industrial processes, support enterprise communications and collaborations, and update corporate databases efficiency. The operation support system includes the following information systems; TRANSACTION PROCESSING SYSTEM This information system record and process the data resulting from business transactions. There are two ways of process the transactions; Batch processing; transactions data are accumulated over a period of time and processed periodically. Real-time processing; data are processed immediately after a transaction occurred.

 PROCESS CONTROL SYSTEMS The process control system monitor and control the physical processes. ENTERPRISE COLLABORATION SYSTEM This enhances team and workgroup communications and productivity and includes applications that are sometime called office automation system. 2. MANAGEMENT SUPPORT SYSTEMS The management support systems are mainly focused on providing information and support for effective decision making to managers. This includes; MANAGEMENT INFORMATION SYSTEM (MIS) MIS has an objective to provide best possible timely information with the use of modern sophisticated technology. Provide information in the form of reports and displays to managers and many business professionals. DECISION SUPPORT SYSTEMS (DSS) Decision support systems give direct computer support to managers during the decision making process. EXECUTIVE INFORMATION SYSTEMS (EIS) It provides critical information from a wide variety of internal and external sources in easy-to-use displays to executives and managers.

LEVELS OF AN ORGANIZATION
Levels of management are the line of demarcation between various managerial positions in an organization. Many managers work in organization .they work and operate at different positions. Hierarchy of these managerial positions called levels of management. Most organizations have three management levels; administrative or top level management, executive or middle level management, supervisory or lower level management. These managers are classified in a hierarchy of authority, and perform different tasks. The levels of management are explained below;

Top level

Middle level

Lower level

LEVELS OF MANEGEMENT 1. TOP LEVEL MANAGEMENT Top level consists of board of directors, chief executive or managing director. The top level management is the ultimate source of authority and it manages the goals policies for an enterprise. They are controlling and overseeing the entire organization. They develop goals, strategic plans, company policies, and make decisions on the direction of the business. The role of top level management; It prepares strategic plans and policies for the enterprise. It lays down the objectives and broad policies of the enterprise. It provides guidance and direction. Control and coordinates the activities of all the departments. Prepare department budgets, procedures, schedules etc.

2. MIDDLE LEVEL MANAGEMENT Middle level management consists of departmental managers, branch managers, and general managers. The middle level is responsible to the top level for the functioning of their department.

The role of middle management is to executing the organizational plans according to the companys policies and the objectives of the top level management. The role of middle level management; Executing the plans in accordance with the companys policies and directive of the top management. Defining and monitoring group-level performance. Make plans for the sub-unit of the organization Evaluate the performance of lower level

3. LOWER LEVEL MANAGEMENT Lower level management consists of supervisors, foremen, section officers, superintendent etc. so it is known an supervisory / operative level of management. They usually have the responsibility of assigning employees tasks, guiding and supervising employees on day-to-day activities, check the quality and quantity of production, making suggestions, solving the employees problems etc. The role of lower level management; Assigning jobs and tasks to various workers. Motivating the workers Providing training to workers. Prepare periodical reports about the performance of the workers.

DECISION TAKEN AT EACH LEVELS OF MANGEMENT

1. TOP LEVEL MANGEMENT CRITICAL DECISIONS

The top level management takes decision relating to the corporate strategic planning and organizational development of the company. These top managers may decide how to handle a major crisis and what product to launch or manufacture. They also identify competitors, create a corporate vision for the company, decide on mergers and acquisitions, develop budgets and set long-term goals.
2. MIDDLE LEVEL MANAGEMENTDECISIONS

Most non-critical decisions are delegated to middle level management. Middle management may handle tactical decisions, oversee the regional market and decide how to meet the companys short-term goals. Middle level management decisions might include marketing a new product, communicating with and managing lower management and determining what issues need to be addressed with top managers. Each management department develops a strategy to meet its inner-departmental goals.

3.

LOWER LEVEL MANAGEMENT DECISIONS

Mainly the operational decisions are taken by the lower level managers. Operational decisions affect daily tasks and are generally handled by lower level management. Lower level managers should identify what impact their decisions will have on themselves and others. Supervisors or team leaders may decide employee-related issues, such as pay rates, training, evaluations, raises, overtime, promotions, hiring and disciplining or terminating employees. A supervisor at this level may decide to reward the most productive employee with an employee with an employee of the month award, or offer incentives.

TYPES OF INFORMATION REQUIRED AT EACH LEVEL

Levels of management Top level Decision making on Strategic planning implementation Middle level Lower level Planning and control Operational control Information support from and Executive system Expert system Management information system Transaction processing

1. AT TOP LEVEL MANGEMENT

EXECUTIVE SYSTEM

An executive information system is a advanced model of decision support system which can take care of unstructured problem situations. It aims at providing information to top executives of an organization who are involved in strategic decision making.
EXPERT SYSTEM

An expert system is a knowledge based system which acts an expert in devising solutions. An expert system acts in a specific area only with the support of knowledge database on this specific area. Knowledge database means structured information stored on previous solution sets in unstructured problem situations. 2. AT MIDDLE LEVEL
MANAGEMENT INFORMATION SYSTEM (MIS)

MIS has an objective to provide best possible timely information with the use of modern sophisticated technology. Provide information in the form of reports and displays to managers and many business

professionals. It meets information required at different levels with pre-defined report and undertake transaction processing for different functional areas.

3. AT LOWER LEVEL
TRANSACTION PROCESING SYSTEM

This information system record and process the data resulting from business transactions. There are two ways of process the transactions; Batch processing; transactions data are accumulated over a period of time and processed periodically. Real-time processing; data are processed immediately after a transaction occurred.

REFERENCE

1. www.referenceforbusiness.com/management/long-mar/management-information-system.html 2. www.managementstudygude.com/management 3. Operations management and information system study material of icwa intermediate course 4.