Introduction
Information system is a network of communication within an organization that entails the use of technology. In information system there is collecting, processing and disseminating of the information or storage, encoding and decoding depending on the nature of the information and its use (Aberer and Martin-Flatin 2).
Through the use of information system the world has been turned into a global village due to its high speed, efficiency and its worldwide coverage.
Information system is essential in organizational decision making process. This is due to the fact that it helps in planning, controlling, coordination and analysis of the organization decision making which is an important aspect in any organization.
The information is stored in electronic databases that are secure, accurate and provide data in an easier and accurate form as compared to the old traditional methods. Information system has four main components which include the following;
Management information system
This component’s main function is to deal with sources of information that emanate from within the firm. It is mainly used to relay reports from middle management officers to the top management of the firm (Aberer and Martin-Flatin 2).
It is concerned with monitoring the use of resources and how operations are conducted. This system being tactical it saves the company resources by controlling misuse of resources and employee idle time.
Transaction processing system
It is intended to deal with the everyday routine activities of the firm. It accurately and efficiently monitors inventory controls, billing systems and preparation of payroll and tax calculations of the firm. This kind of data is essential to the management in its operations and providing relevant information for other departments.
Decision support system
Since decision making is a critical function of any organization, the decision system is put in place to guide the management on the probable outcomes of the decision to be made or already made.
It is technically designed to gather, analyze and offer alternatives to the decisions through the use of databases and spreadsheets support. It deals with information from both internal and external sources. It predicts the firm’s future thereby enabling the management make viable decisions that will steer success of the firm.
Executive support system
As the name suggests it is used by executives and senior administration in the making and implementation of strategic decisions relating to the organization. It uses comprehensive and sophisticated analysis tools that answer the question what if. It is designed in such a way that the executives can operate it without involvement of intermediaries.
Knowledge work system
With the help of this system firms can create and share information with the other departments and employees within the firm (Layton 78).
It is mainly used in firms that require frequent sharing of information and consultations such as law firms, auditors among others. It helps to distribute information thereby acquiring relevant information from other sources and minimizing movements within the firm.
Office automation system
This system is essential in most organizations as it aims at improving employee productivity. It makes use of software such as Microsoft site and operating systems like Linux and vista (Layton 85). It is used in all departments and linked to a main centre where all events and activities are recorded. This helps in providing future references to data.
Conclusion
In ratiocination information system is the backbone to decision making in any modern organization. By adapting the various systems a firm is able to make viable decisions and keep track of its operations to ensure it achieves its objectives of being in business.
Works Cited
Aberer Karl and Martin-Flatin, J. Conception of Information Systems. 2005. Web.
Layton, Timothy. Information Security: Design, Implementation, Measurement, and Compliance. Boca Raton, FL: Auerbach publications-2007.