NATURE OF ASSIGNMENT: INDIVIDUAL ASSIGNMENT

SUBJECT: MANAGEMENT INFORMATION SYSTEM

SEMESTER: ONE

COURSE CODE: ITU 07319

OPERATOR NAME: IRENE. M (MISS)

ACADEMIC YEAR:
2025/2026

STUDENT NAME: LETYUS AYUBU MKOPI

REGISTRATION NUMBER: BA-02-0042-2024

COURSE: BACHELOR DEGREE IN

ACCOUNTANCY

QUESTION:
Explain how Management Information Systems (MIS) gathers, process and
present data to support decisions at the 3 levels of management (top-level,
middle-level, and lower-level management) within an organization. (Examples
add value).
According to our question, they emphasize on how Management Information
System support the decision-making process on three level of management.

Management Information System compromising the term Management and

Information System.

 Management is defined according to Mary Parker Follet as the art of

getting things done through and with people. According to her
Management is a way people coming together to doing a specific thing in
sense of achieve common (organization) goal. It is both art means
requiring personal skills and creativity and science means using
systematic methods and data. Primarily management consist of five
functions such as planning, organizing, staffing, directing and controlling,
(Fayol, 1916). Furthermore, those management functions are classified
based on the three level of management, such as Top-level management,
Middle-level of management and lower-level of management.
 Information System defined as the study of complementary networks of
hardware and software that people and organization use to collect, filter,
process, create and distribute data (Davis, Gordon & Olson, Margrethe,
2007)
Based on the definition above, information system broader view on the
components that enable user to change data into information such as
software, hardware, data, people, network and process, and the role that
those components play in organization, For instance the use software
(Microsoft word) in convert data into information so as to be used to the
organization meetings and other activities.

Therefore, the term Management Information System means, an integrated

user-machine system for providing information to support operations,
management, and decision-making functions in an organization, (Davis, Gordon
& Olson, Margrethe, 2007). The study of management information system is far
more than develop software and codes but the study emphasizing coordination
between human intelligence and computer processing power to help a manager
to solve specific business problem. Let take example of the use of transaction
processing systems (TPS) in providing some information to the team leaders,
supervisors and so-on.

Management Information system (MIS) plays a crucial role in organizations by

gathering, processing and presenting data to support decision- making across
level of management. Let`s break down how management information system
operates and provide examples for each management level.

TOP LEVEL MANAGEMENT

According to Henri Fayol defines the top-level management not just as a

position, but as the primary source of administrative strategy for the entire
“body of corporate”. (Fayol, 1916). He viewed that the top level as the “Head”
of the organization. Henri Fayol argued that while technical skills are important
at lower level, administrative ability is most critical requirement for the top
level.

Specifically top-level management are likely chief executive officer (CEO),

chief financial officer (CFO), Chief operating officer (COO), chief marketing
officer (CMO).

According to Fayol`s framework in his book, the top level is responsible for the
following five functions such as: Planning, Organizing, Commanding,
Coordinating and Controlling.

After explained about the top-level management, let`s discuss how management
information system gathers, process and present data to support decision at the
top-level management.
Executive support system (ESS): is a specialized type of management
information system (MIS) designed specifically for top-level executive.

 Gathering data (input)

The system extracts summarized data from lower-level system like
Transaction, include financial data, inventory levels and departmental
performance. And gather information from outside world-competitor
news, stock market trends, new government regulations and industry
news feeds (RSS).
 Processing Data (Analysis)
The system also refines the data by removes technical noise and
summarizes millions of data points into Key Performance indicators
(KPI). Also, the system uses statistical models to identify patterns over
time, helping executives forecasting future growth or identify potential
crises before they happen.
 Presenting data (output)
The system also has friendly user interface to save user’s time.
Example a CEO reviewing a dashboard that displays revenue trends,
market share and competitor analysis to guide strategic planning.

MIDDLE LEVEL MANAGEMENT

Middle level management is the layer of management in an organization that

operates between top level management and lower-level management. This
level is critical for translating the strategic vision set by top management into
actionable plans and overseeing the day-to-day operations of department or
teams. (Mintzberg, 2009).
According to Henri Fayol, emphasizes the middle level acts as the vital bridge
that translates these high-level plans into actionable reality. regional managers
are example of middle level management

A Decision support system (DSS): Is a computer-based information system

specifically designed to help middle level management solve semi-structured
problems and to handle tactical decisions- like budgeting, resource allocation
and project scheduling-where the answer isn`t always black and white.

 Gathering data (input)

A DSS collects information from specific sources that reflect the middle
manager`s “departmental” focus: for instance, from Transaction system
(TPS), internal database and user knowledge.
 Processing data (Analysis)
It uses analytical models to run raw data into “what-if” scenarios. The
system uses statistical tools like regression or linear programming to find
optimal solutions, such as the best delivery route or the most efficient
production schedule.
 Presenting Data (output)
Middle managers need actionable reports that help them implement the
top-level strategy. The DSS presents data through, interactive reports,
dashboard and graphs as well comparative reports.

LOWER-LEVEL MANAGEMENT

Lower-level management, often referred to as supervisory or first line

management, represents the lowest tier in an organization’s management
hierarchy. This level is essential for overseeing day to day operations and
managing the performance of frontline employees. (Jones, 2019)
Supervisor, team leader, foreman and shift manger are among examples of
lower-level management positions which is essential for successfully operation
of an organization and to ensure that daily activities align with broader
organization goals, by managing the work force and addressing immediate
concerns.

A Transaction Processing System: to make decision at this operational level,

managers rely on the transaction processing system (TPS). This is the engine
room of a company`s information architecture, designed to handle highly
structured, routine data.

 Gathering data (input)

The TPS is the first point of contact between the business and the real
world. It gathers raw data from the basic events the happen every minute
outside the organization (customer orders placed online, credit card) and
inside the organization (include scanning barcode at checkout, employee).
Also, in a TPS, every piece of data is treated as a “Transaction” an
elementary activity like a sale, a deposit, or a withdrawal.
 Processing data (Analysis)
In a TPS data are processed through high-speed automation and strict
rules, that`s validation, sorting and listing, updating database and
ensuring integrity. For instance, grouping all transactions by date, time or
employee ID.
 Presenting data (Output)
In TPS output is highly detailed and specific depict the exact what
happened, through detailed reports, operational documents and
exceptions reports. For instance, receipts, pay checks, invoice and
packing slips.

Conclusion, since management deals with people and we`re knowing that
human doesn`t one hundred percent in doing their work, there is some
discrepancies, errors and fraud while undertake their work obligations. Hence
management information systems very important to help workers while preform
their duties.

Bibliography
Davis, Gordon & Olson, Margrethe. (2007). Management Information
System: Conceptual Foundations, Structure and Development.
Birmingham city: Adventure work press.

Fayol, H. (1916). General and Industrial Management. Turkey:

Administration Industrielle et Generale.

Jones, G. R. (2019). Contemporary Management (10th edition ed.).

McGraw-Hill Education.

Mintzberg, H. (2009). Managing. chicago: Berret-koehler Publisher.