Information Technology

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Explain how information technology is providing managers with decision support.

We live in an age of technology and for corporations to remain competitive it is essential that management is able to use information technology to support the attainment of corporate goals. Information Systems provide means of supporting the decision-making requirements of organizations in a complex environment. Computer technology has developed beyond its original data processing function into a management support role, but this development also makes new demands on managers. The modern manager must be able to understand this technology, plan and develop it using an appropriate methodology, and then use it effectively.

Acquiring data management technology first requires that a decision be made about the basic approach to data management. After this decision has been made, the necessary software can be selected. Many companies supply database software, including computer manufactures like IBM.

A management information system (MIS) supports management decision making by providing information in the form of reports and responses to queries to managers at different levels of an organization. MIS is also used to refer to all types of information systems, including transaction-processing systems. This system puts its output information in a form that is useful by managers at all levels or organization strategic, tactical, and operation. An example of an MIS report is annual report for a stockholder.

Information technology decentralizes decision authority. Managers perform interpersonal and decisional roles. Information technology enlarges managers' jobs adding to their present activities or replaces informal roles with interpersonal and decisional ones.

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