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Three Levels of Management

Paper Type: Free Essay Subject: Information Systems
Wordcount: 1961 words Published: 2nd Jan 2018

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Information system means by which people and organizations utilize technologies, collect, store use and distribute information. Good information system is used to provide important information for decision making. The information technology may be used for the processing, storing or distribution of data. These technologies collectively include information technology and data. It is an organized combination of people, hardware, software, communications networks, and data resources that stores and retrieves, transform and disseminate information in an organization. Very main functions of information systems issystems analysis and design, that is to say, analyzing a customer’s business condition (or trouble), with deference towards information processing, and designing and implementing an suitable—generally computerized—solution to the difficulty. Information systems professionals who focus in this part are known assystems analysts. The procedure begins with a complete determination of the client’s information needs and business processes. The result normally involves various programming, in addition to the use of a suitable application software package(s), for example a database management system (DBMS) used for designing and implementing a database for the customer. It may also involve a number of networking considerations, depending on the user’s needs and goals.

Levels of management

The term level of management refers to a line of demarcation between various managerial positions. The number of levels of management depends upon the size, technology, degree, of diversity and nature of product. There are mainly three levels of management in most of the organization. There are

  1. Top level management
  2. Middle level management
  3. Lower level management

Top level management

Top level consists of the board of directors, general manager and other senior executives. They fix the objectives of the organization. They fix the objectives of the organization. They prepare policies and takes important decisions to accomplish the objectives of the organization. They issue instruction and orders to lower level management. Every organization runs by the managers in that organization, who are taking opinion in the all step of organizational activities. In a big organization the computer department responsible for giving information or data also called management information department. In an organizational information system is used to communicate and analyze the in every levels of the organization. In this level decides on the board objectives of an organization.

Enterprise resource planning

Enterprise resource planning is a method to add the information and processes of an organization into one single system. Generally Enterprise resource planning systems will have a lot of works including hardware and software, in order to attain integration, most ERP systems use a joined database to store data for different functions establish all over the organization. The word ERP firstly referred to how a big organization planned to use organizational wide resources. In the past,ERP systemswere used in better more industrial types of companies. However, the use of ERP has changed and is really complete, nowadays the word can refer to every kind of company, no matter what industry it falls in. Actually ERP systems are used in approximately every type of organization – large or small.

In order for asoftwaresystem to be considered ERP, it must provide an organization with functionality for two or more systems. While some ERP packages exist that only cover two functions for an organization (QuickBooks: Payroll & Accounting), most ERP systems cover several functions.

Executive Information Systems (EIS)

An Executive Information System (EIS) is a type of management information system planned to assist and support the information and decision making needs of senior executives by given that simple access to both internal and external information related to meeting the strategic goals of the organization. The importance of executive information system is on graphical displays and easy to use user interfaces. EIS are enterprise large decision support system that helps top level executives study, evaluate and emphasize trends in important variables so that they can check performance and identify opportunities and troubles.

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Middle level management

Middle level consists of head of financial departments. They are responsible to top management. They are concerned with organization and direction function of management. Interpretation of the programs and policies communicate by the top level management, organizing and manning their departments as per the main plan, plan the departmental operations, guide direct and motivate their workers to attain the objective, co-operate and co-ordinate with other departments, evaluate the performance of his subordinates, collect reports and statics from the lower and send in to top level management. These are the functions of middle level management. Acquire and arrange the resources to meet the goals of an organization. In this level define the detailed tasks to be carried out at the operational level.

Management information and reporting systems (MIS):- These systems present mid-level and senior managers through periodic, often summarized, information that help them determine performance (e.g., an exacting region’s sales performance in a particular time period) and create right decision based on that information. Provide middle level management with reports that summarize and categorise information derived from company database.

Decision support systems (DSS): These systems are considered to assist mid-level and higher-level managers create those complicated decisions about which not all related restriction is known. There are decision support systems that help out groups to create consensus-based decisions; this is well-known as group decision support systems. A type of decision support system that is geared mainly toward high-level higher managers is theexecutive information system(EIS) orexecutive support system(ESS). As this has the ability to do extremely detail analyses, just like a regular DSS, it is designed mainly to help executives continue track of a little particular items that are critical to their day-to-day high-level decisions.

Expert systems: – An expert system is built with form keen on the computer the thinking processes and decision-making heuristics of a conventional specialist in an exacting field. As a result, this kind of information system istheoreticallyable of making decisions for a customer, based on input received from the customer

Lower level management

Lower level management is also known as supervisory management. This level includes supervisors, foremen, gang boss, accounts officer, sales officer etc. They are more concerned with direction and control function of management. Their functions are:- plan for a day or weak, organize the activities of his group, allot work to the workers under him, issue instructions at the site, motivate the employees, arrange materials, machines, tools etc. for workers, give guidance and supervise the employees, to maintain discipline and good relations with the groups.

Most decisions at in this level require easily defined information that relates to the current status and activities within the basic business functions. Information is gained from detained report which contains information about routine activities. Detailed tasks defined by middle management are carried out by people at operational level.

Transaction processing systems (TPS):- These documentation and way of an organization’s transactions, for example sales transactions or stock items, from the instant everybody is first created until it leaves the system. This help out the managers at the daily effective level keep track of daily transactions in addition to create decisions on when to put orders, create consignment, and almost immediately. These systems capture and process about business transactions. Sometimes it’s called as data processing systems. It is mostly used at operational level. Usually creates detailed reports of daily transactions or future transactions. Reports generated are useful only to lower level managers of the organisation.

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Toyota Enterprise’s Information Systems

Toyota Motor Corporation Australia (TMCA) is the second largest vehicle manufacturer in Australia. Toyota Australia has exported over 60000 cars to over 20 different commercial locations worldwide in 2003.Toyota Industries is developing and manufacturing information systems, such as the Warehouse Management System (WMS), and the stocking management system for automatic warehouses. When combined with the logistics equipment of TOYOTA Material Handling Company, we are able to provide our customers with optimized logistics solutions at their worksite.

Business-to-consumer (B2C):- The main aspects of business -to-consumer this is the most common form in ecommerce. The business is selling its items to an individual. The supplier is the business owner and the purchaser is the individual consumer. In selling items through the website, business owners usually creates catalogs and online shopping carts for the consumers to choose from and for the business owners to accept online payments.

Business-to-business (B2B):-The buyers and the sellers are both business owners. This is the type in which selling is among the companies. Mainly products that are sold by businesses are not manufactured by their own company. They immediately purchased those products throughout wholesalers or from the product manufacturer itself. For example, Toyota Motors does plenty of B2B dealings like purchasing the tires, glasses, rubber hoses and other parts of Toyota vehicles from another manufacturer.

Consumer-to-consumer (C2C):- Consumer-to-consumer allows process of products between two individuals. This style does not require a middleman. Also the perfect example of this type is eBay in which it allows individuals to sell and purchase their products directly.


Information technology is very important in business organization. Information technology is used in every levels of the organization. Companies cannot exist without the use of information technology. The basic concept of information systems has been introduced. Hence, a general idea about the importance of information systems should be achieved. It is very clear that information system is very much important for the successful growth and development of the organization.


  • John.G.Burch & Gary Grudnitski, Information System: Theory & Practice.
  • Graham Curtis & David Cobham, Business Information Systems: analysis, design & practice
  • Robert.D.Galliers, Dorothy.E.Leinder, Strategic Information Management 4thEdition.
  • George Reynolds, Ethics in Information Technology (2003).
  • http://blog.philwebservices.com/different-types-of-ecommerce
  • http://www.turningcourse.com/ukais/isdefn.pdf
  • http://www.webopedia.com/TERM/I/Information_Systems.html
  • http://books.google.co.uk/books?hl=en&lr=&id=7_-67SshOy8C&oi=fnd&pg=PR9&dq=information+systems+IN+TOYOTA&ots=YlWst9DhG2&sig=cB9XURgqsBVDVdf80LLTvELxAQk#v=onepage&q=information%20systems%20IN%20TOYOTA&f=false


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