Introduction to Information Systems and Decision Making

This report provides an in-depth analysis of the crucial role that information systems (IS) play in organizational decision-making. It highlights how Management Information Systems (MIS) are essential for tracking operations and providing data for informed decisions, emphasizing their impact on strategic planning, marketing, and staffing. The report further explores various types of information systems beyond MIS, including Decision Support Systems (DSS), Office-Automation Systems, Transactional Processing Systems, and Executive Support Systems (ESS), detailing their respective functions and contributions to different levels of organizational decision-making. It underscores the importance of accurate and timely information, supported by well-developed IS, for achieving organizational goals and maintaining a competitive edge in the marketplace. The analysis also provides insights into how MIS transforms management teams' direction, using real-world examples of how data can be used to improve performance and efficiency, concluding with the crucial role of information processing in the era of globalization and technological advancements.

Running head: INTRODUCTION TO INFORMATION SYSTEM
Introduction to Information System: The Role of Information System in organizational Decision-
Making
Student’s Name
Institutional Affiliation

INTRODUCTION TO INFORMATION SYSTEM 2
Abstract
Decision making is the cornerstone of any organization. Consequently, information system plays
a key role in organizational decision making process through management information systems
which helps companies to track their operation.
Introduction
The correlation between information system and decision making is a major concern
when it comes to the field of information system (IS). The key aim of information systems is to
aid decision makers by providing timely as well as accurate based information that helps them in
making the right decisions in a turbulent setting (Abbasi, Sarker, & Chiang, 2016). A recent
study has shown that in the present world successful organizations are depending on information
systems to enhance their operations as well as attaining their goals and objectives. Indeed,
management information systems plays an essential role in resolving both unstructured as well as
structured problem settings. Therefore, this systems comprises computers, individuals,
procedures, interactive query facilities and databases among others. Certainly, information is the
most critical ingredient for success decision making in the present world companies. As a result
of information in the process of decision making referred to as information system.
Successful businesses are found on well-advanced and grown series of well-informed and
powerful decisions. As such, proper decision making depends upon accurate information, data as
well as an awareness of all the existing options, which is supported by management information
systems (Morden, 2017). The objective of management information systems in the process of
decision making is to generate data which is significant to the management as it considers
strategy, marketing, staffing as well as teams (Janssen, Van der Voort, & Wahyudi, 2017). In this

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regard, selecting the type of data that is tracked by MIS in addition to the manner in which the
management make use of this data and information in decision making has been found to be
effective in making organizations become competitive in the marketplace. This paper provides
an analysis regarding how management information system is used in decision making in
organizations.
Analysis of how Management Information Systems is used in Decision Making
Management information systems is described as a computer-based database that consists
of information about the company operations. The organizational management as well as the
lower management level make use of MIS to track the organization’s performance in addition to
running reports regarding the company’s efficiency, productivity, product performance, revenue
as well as team sales among other operations (Cai, Huang, Liu, & Liang, 2016). Most of the
present MIS have the ability to illustrate the present performance contrasted with the projected
performance to allow managers to tell if the company is lagging behind, attaining its goals or it
has exceeded its goals. Therefore, the significance of management information system in
decision making is based on its capability to transform the direction of organizational
management teams (Gray, Issa, Pye, & Troshani, 2016). For instance, if the management
information systems reports that one of the management team has exceeded the quarterly
performance projections, additional help can be channeled to aid the struggling team.
Operation Tracked by Management Information System
Management information system generates reports regarding all types of data which is
important to management in terms of decision making. Some of these reports include operations
such as employee efficiency, employee performance, work that has been completed and work

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that needs to be accomplished as well as the effectiveness of training (Pearlson, Saunders, &
Galletta, 2019). The management information systems make comparison between the
performances of employees, provide ranking for each employee and compare projected
performance to the actual performance.
Other Types of Information Systems
Management information systems is primarily utilized for decision making but there are
other type of information systems used by employees. These information systems include
Decision Support Systems, Office-Automation Systems, Transactional Processing Systems and
Executive Support Systems.
Decision support system is a type of information systems that is by the management to make
organizational decisions versus the management decisions where MIS is utilized.
Office-automation system is a system that helps the office to facilitate its day to day operations
such as word processing programs, voicemail systems and email. This type of information
system is used by low level employees within an organization.
Transactional processing systems is information system that is utilized by organizations to
accomplish operations such as placing orders, making purchases, billing clients, and tracking
received orders to mention but a few. When a transactional processing systems is used in the
right way, it offers accurate information in regard to sales rate, order fulfilment, information on
inventory and costs of items.
Executive support system is a type of information system that combines DSS and MIS to give
the top management with data that is required in making critical decisions regarding the direction
to be undertaken by the business as well as employee strategies.

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Summary
In conclusion, with the advancement of globalization and development of information
technology, information processing has become a necessity to successful organizations.
Information has become essential in organization decision making. Thus, application of
information systems technology

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References
Abbasi, A., Sarker, S., & Chiang, R. H. (2016). Big data research in information systems:
Toward an inclusive research agenda. Journal of the Association for Information Systems,
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Cai, Z., Huang, Q., Liu, H., & Liang, L. (2016). The moderating role of information technology
capability in the relationship between supply chain collaboration and organizational
responsiveness: evidence from China. International Journal of Operations & Production
Management, 36(10), 1247-1271.
Gray, H., Issa, T., Pye, G., & Troshani, I. (2016). Management Information Systems, 1st
Australasian Edition. John Wiley & Sons.
Janssen, M., van der Voort, H., & Wahyudi, A. (2017). Factors influencing big data decision-
making quality. Journal of Business Research, 70, 338-345
Morden, T. (2017). Principles of management. Routledge: London.
Pearlson, K. E., Saunders, C. S., & Galletta, D. F. (2019). Managing and using information
systems: A strategic approach. John Wiley & Sons.