MANAGEMENT CONSULTANCY - Solutions Manual

CHAPTER 28 FUNDAMENTALS OF MANAGEMENT INFORMATION SYSTEM

I. Questions 1. A system is an array of interrelated activities and components designed to accomplish a particular objective in relation to an overall plan. 2. An information system refers to the network of all the methods used to communicate information within an organization. 3. A management information system is a set of data gathering, analysis and reporting activities designed to provide management with the information it needs to discharge its functions of planning, coordinating and controlling business operations. 4. The major information systems are: a. Financial information system This is concerned with the flow of monetary or financial information through the organization. The accounting system of the company is only part of the financial information system. b. Logistics information system This is concerned with the flow of information about the physical flow of goods (raw materials, goods in process, finished goods) through an organization. c. Personnel information system This is concerned with the flow of information about the people (top and middle management, rank and file) working in an organization. II. Multiple Choice 1. D 2. B 3. D 4. D 28-1