0
What are the external sources of information for the top management to support their decision making justifying its position in an MIS?
Mangers in organization need information on what is happening within the organization as well as about the external environment within which the organization operates. People at lower level of organization need more of the internal information an less of external information. But with increasing level level of management hierarchy the proportion of external information increases and the quantity of internal information decreases. The managers at the top management level thus need a large amount of external information on the environment within which they operate.
The external information needed by the top management is often divided in two broad types - information on immediate environment of the company, and that on the wider environment. The immediate environment of the company include its customers, suppliers, competitors and the industry within which the organization operates.
The wider environment includes the everything else outside the company. The information in the wider environment is often classified according to PESTEL framework, which divides the total external environmental factore in following six groups.
- Political
- Economical
- Social
- Technological
- Environmental (Physical)
- Legal
The various sources of information through which top level managers collect external information include.
- Their own observation and personal study of what is happening in the environment.
- Information collected and fed to them by their subordinates and colleagues in the organization.
- Information collected from customers, suppliers and other persons such as bankers - with whom the company deals.This information may be obtained by top managers directly or through their subordinates and colleagues.
- Information collected as a part of normal business activities. For example, when a company sell its products through the process of open tendering, it is able to get valuable information about competitors.
- Through publications. These include statistical data, articles, and advertisements.
- From organizations that collect, compile and analyse and sell business information.
- Through market research,and other similar field surveys.
- Through experts such as layers and economists.
What else can I help you with?
What are the five sub system of management information system.?
The five subsystems of a Management Information System (MIS) are: Transaction Processing System (TPS): Captures and processes day-to-day transactions. Management Reporting System (MRS): Generates reports for management decision-making based on data from the TPS. Decision Support System (DSS): Provides analytical tools and data to support complex decision-making. Executive Information System (EIS): Offers top executives easy access to internal and external information relevant to their strategic goals. Knowledge Management System (KMS): Facilitates the organization, sharing, and analysis of knowledge within the organization.
Describe the components and interrelationships of different categories of accounting?
The main categories of accounting include financial accounting, management accounting, and cost accounting. Financial accounting focuses on recording and reporting financial information for external users. Management accounting provides financial information to internal decision-makers and helps in budgeting, planning, and decision-making processes. Cost accounting analyzes the cost of manufacturing a product or providing a service. These categories are interrelated as the information produced in financial accounting is used by management accounting for decision-making, and cost accounting employs the techniques and information provided by both financial and management accounting.
What is internal and external sources of information in marketing strategy?
Internal sources of information could be a database management system that is used by the company. Employees and management are also examples of internal sources of information. External sources are outside of the organization and harder and could include studies and market research.
What are the internal and external constraints of implementing management information system in an organisation?
Pg 222 in mis
Is creditor an internol user?
A creditor is generally considered an external user of financial information. They are not part of the organization but rely on financial statements to assess the creditworthiness and financial health of the business. Internal users, such as management and employees, use financial information for decision-making within the organization.
What is included in information systems?
Management information systems (MIS) are used to help companies review business information and make decisions. An MIS exists outside the regular technological system because the MIS combines many parts of business information to aid managers. Internal and external information is gathered through the MIS for management to use when reviewing business operations.DefinitionA Management Information System (MIS) is the method a company uses to obtain reliable information regarding their business operations. The MIS should not be concerned with can the information be retrieved but how and what should be retrieved so management can make effective decisions. Once information is provided through the MIS, decisions can be made regarding the effectiveness of business operations. Proper MIS reporting utilizes the best technology and enhances information flow from each department in the company.TechnologyMany MIS systems contain a technological piece that helps management gather information quickly and accurately regarding each division in the company. Internal information is gathered using the current information technology used in the company; external information is gathered using the MIS, which uses technology to obtain external information relevant to company operations. Both sources of information will be used to review company operations and make company decisions.Project ManagementSome companies will create special project management positions to aid in developing their MIS for decision making. Project managers will learn how information can best be gathered and reported in the company for management. Information is only relevant if it can be gathered in a timely manner and contains information that management will find useful in decision making. Project managers will review all aspects of a company for how to best gather information for the MIS.System AdministrationOnce the project managers have completed their research, the MIS will be implemented into the decision making system. System administrators are responsible for maintaining the integrity of the system and ensuring that the information continues to flow through the MIS. Administrators will also review the MIS and discover if any new information should be included in the MIS flow. Administrators will also help communicate decisions from management to each department in the company that needs to improve or expand operations.Decision SystemA decision system is the process company management uses upon reviewing the information gathered by the MIS. Making decisions is critical to a company's success and future growth opportunities. Decision systems are designed according to the management style of the company and how many managers will participate in the decision process. Allowing more managers to participate in the decision helps create a strong consensus from the reported information, ensuring a greater success from each decision.Increase ProductivityOutside of increasing the effectiveness of management decisions, an MIS is built to increase the overall productivity of the company. Better information allows for companies to change inefficient operations and improve production methods and service functions. Increasing productivity helps companies
What group or groups of people are not considered to be the external users of accounting information?
Internal Users of accounting information would not usually be external users. Management, staff, the board, would all be classed as internal users of financial information.
What are the factors affecting decision styles in management?
Decision styles in management are influenced by several factors, including individual personality traits, cognitive biases, and risk tolerance. Organizational culture and structure also play a significant role, as they shape how information is processed and decisions are made. Additionally, external environmental factors, such as market conditions and regulatory pressures, can impact decision-making approaches. Lastly, the complexity and urgency of the situation often dictate whether a manager opts for a more analytical or intuitive decision style.
What type of information is dealt with in an assurance service?
Information in an assurance service can be financial or nonfinancial, historical or forward-looking, discrete data or information about systems, internal or external to the decision maker.
Describe various types of information systems by breadth of support?
Information systems can be categorized by their breadth of support into three main types: Transaction Processing Systems (TPS), Management Information Systems (MIS), and Decision Support Systems (DSS). TPS handle day-to-day operations and transactions, providing a foundation for data collection and processing. MIS aggregates and summarizes this data to support management decision-making through reporting and analysis. DSS, on the other hand, offers advanced analytical tools and models to assist in complex decision-making processes, often incorporating external data to enhance insights.
The difference between Internal and External information sources?
Internal information is the kind of information that is obtained internally such as accounts receivable information, financial statements etc. On the other hand external information is the type of information that is obtained from external means such as competitor business model, customer's credit rating etc.
Who is not an internal user of financial statement?
External users of financial statements include investors, creditors, regulators, and analysts. Unlike internal users such as management and employees, external users rely on financial statements to assess an organization's performance and financial health from an outside perspective. They utilize this information for decision-making regarding investments, lending, and compliance with regulations.
