COLLEGE OF BUSINESS EDUCATION

(CBE-MWANZA)
HUMAN RESOURCE INFORMATION SYSTEM
COURSE CODE: BAU 07318
LECTURE-2
INFORMATION SYSTEM WITH LEVELS OF MANAGERS SERVES
What is an Information System?
An information system (IS) is any organized system for the collection, organization,
storage and communication of information. More specifically, it is the study of
complementary networks that people and organizations use
to collect, filter, process, create and distribute data. In other words, an information
system (IS) is a group of components that interact to produce information.
Note: A computer Information System is a system composed of people, data,
procedures, software and hardware that processes or interprets information.
TYPES OF INFORMATION SYSTEM (IS)
Most organizations are hierarchical; the way in which the different classes of information
systems are categorized tends to follow the hierarchy. This is often described as "the
pyramid model" because the way in which the systems are arranged mirrors the nature
of the tasks found at various different levels in the organization.
While there are several different versions of the pyramid model, the most common is
probably a four-level model based on the people who use the systems. Basing the
classification on the people who use the information system means that many of the other
characteristics such as the nature of the task and informational requirements are taken
into account more or less automatically.

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Four level pyramid model based on the different levels of hierarchy in the organization

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A comparison of different kinds of Information Systems
Using the four-level pyramid model above, we can now compare how the information
systems in our model differ from each other.
✓ TRANSACTION PROCESSING SYSTEMS - What is a Transaction Processing
System? - Transaction Processing System is operational-level systems at the
bottom of the pyramid. They are usually operated directly by shop floor workers or
front line staff, which provide the key data required to support the management of
operations. In other words is a computerized system that performs and records
daily routine transactions necessary to the conduct of the business.
Functions of a TPS
TPS is ultimately for process data and records daily routine transactions necessary to the
conduct of the business.
Some examples of TPS
o Payroll systems
o Order processing systems
o Reservation systems
o Stock control systems
o Systems for payments and funds transfers
The role of TPS
o Produce information for other systems
o Cross boundaries (internal and external)
o Used by operational personnel + supervisory levels
o Efficiency oriented
✓ MANAGEMENT INFORMATION SYSTEMS - What is a Management
Information System? - For historical reasons, many of the different types of
Information Systems found in commercial organizations are referred to as
"Management Information Systems". However, within our pyramid model,
Management Information Systems are management-level systems that are used
by middle managers to help ensure the smooth running of the organization in the
short to medium term. The highly structured information provided by these systems
allows managers to evaluate an organization's performance by comparing current
with previous outputs.
Functions of a MIS

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MIS are built on the data provided by the TPS. In other words, MIS provide the summary
of what had being captured in TPS.
Some examples of MIS
o Sales management systems
o Inventory control systems
o Budgeting systems
o Management Reporting Systems (MRS)
o Personnel (HRM) systems
The role of MIS
o Based on internal information flows
o Support relatively structured decisions
o Inflexible and have little analytical capacity
o Used by lower and middle managerial levels
o Deals with the past and present rather than the future
o Efficiency oriented?
✓ DECISION SUPPORT SYSTEMS - What is a Decision Support System? - A
Decision Support System can be seen as knowledge-based system, used by
senior managers, which facilitates the creation of knowledge and allow its
integration into the organization. These systems are often used to analyze existing
structured information and allow managers to project the potential effects of their
decisions into the future. Such systems are usually interactive and are used to
solve ill structured problems. They offer access to databases, analytical tools,
allow "what if" simulations, and may support the exchange of information within the
organization.
Functions of a DSS
DSS manipulate and build upon the information from a MIS and/or TPS to generate
insights and new information.
Some examples of DSS
o Group Decision Support Systems (GDSS)
o Computer Supported Co-operative work (CSCW)
o Logistics systems
o Financial Planning systems
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 o Spreadsheet Models?
The role of DSS
o Support ill- structured or semi-structured decisions
o Have analytical and/or modelling capacity
o Used by more senior managerial levels
o Are concerned with predicting the future
o Are effectiveness oriented?

✓ EXECUTIVE SUPPORT SYSTEMS (ESS) - What is an ESS? - Executive

Information Systems are strategic-level information systems that are found at the
top of the Pyramid. They help executives and senior managers analyze the
environment in which the organization operates, to identify long-term trends, and
to plan appropriate courses of action. The information in such systems is often
weakly structured and comes from both internal and external sources. Executive
Information System are designed to be operated directly by executives without the
need for intermediaries and easily tailored to the preferences of the individual using
them.
Functions of an ESS
EIS organizes and presents data and information from both external data sources and
internal MIS or TPS in order to support and extend the inherent capabilities of senior
executives.
Some examples of ESS
Executive Information Systems tend to be highly individualized and are often custom
made for a particular client group; however, a number of off-the-shelf EIS packages do
exist and many enterprise level systems offer a customizable EIS module.
The role of ESS
o Are concerned with ease of use
o Are concerned with predicting the future
o Are effectiveness oriented
o Are highly flexible
o Support unstructured decisions
o Use internal and external data sources

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 o Used only at the most senior management levels
Note: TPS generally feed all other systems. MIS generally indicate when a DSS is needed
and provide input for them. ESS takes all internal data but usually only summary data
from MIS and DSS level.

HOME WORK
1. What is an information System? What activities does it perform?
2. What is the difference between data and information?
3. Discuss in brief the various types of information
4. Describe the various components of an information system.
5. Describe the information system supporting the major business functions.
6. Evaluate the impact of information system on organizations.
7. What is the difference between the ability of manager to retrieve information
instantly on demand using an MIS and the capabilities provided by a DSS?
8. Define MIS and explain in brief components of MIS

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9. What is purpose of an information system from a business perspective? What role
does it play in the business information value chain?
10. What is information systems literacy? How does it differ from computer literacy?
11. Identify and describe the three levels of the organizational hierarchy. Which types
of information systems serve each level?
12. What are the characteristics of MIS? How do MIS differ from TPS? From DSS?
13. Describe the relationship between TPS, MIS, and ESS
14. List and describe the information systems serving each of the major functional
areas of a business.
15. What is Expert System (ES)?
16. How does Expert System differ from TPS, MIS, DSS and ESS?

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