Chapter 10 – Information Systems

"Pricing, promoting, selling, and distributing the organization’s goods and services pertain to which of the following functions?
A) marketing
B) production
C) accounting
D) research"

Marketing

"Creating finished goods and services using raw materials and personnel pertains to which of the following functions?
A) marketing
B) research
C) production
D) human resources"

Production

"Who is responsible for operational matters and monitoring day-to-day events?
A) supervisors
B) middle management
C) stockholders
D) top management"

Supervisors

"This level of management is concerned with long-range planning and uses information that will help them plan the future growth and direction of the organization.
A) top management
B) middle management
C) supervisors
D) stockholders"

Top management

"This level of management is involved with tactical planning and implementing the long-term goals within an organization.
A) top management
B) middle management
C) supervisors
D) stockholders"

Middle management

"________ systems help supervisors by generating databases that act as the foundation for other information systems.
A) Decision support
B) Management information
C) Transaction processing
D) Executive support"

Transaction processing

"Which of the following refers to a system that summarizes detailed data from the transaction processing systems in standard reports for middle-level managers?
A) data processing system (DPS)
B) management information system (MIS)
C) decision support system (DSS)
D) executive support system (ESS)"

Management information system (MIS)

"Who uses management information systems?
A) employee-level workers
B) supervisors
C) middle-level managers
D) top-level managers"

Middle-level managers

"Which system presents information in a highly summarized form?
A) transaction processing system (TPS)
B) management information system (MIS)
C) decision support system (DSS)
D) executive support system (ESS)"

Executive support system (ESS)

"A transaction processing system is also referred to as a ________.
A) sales order processing
B) data processing system
C) management information system
D) database management"

Data processing system

"The ________ activity records the customer requests for products or services.
A) payroll
B) sales order processing
C) inventory
D) accounts receivable"

Sales order processing

"Money collected from or owed by customers is called ________.
A) accounts payable
B) inventory
C) accounts receivable
D) sales order processing"

Accounts receivable

"The ________ keeps records of the number of each kind of part or finished good in the warehouse.
A) payroll
B) inventory control system
C) sales order processing
D) general ledger"

Inventory control system

"What documentation shows the income, expenses, and difference between them for a company during a specific time period?
A) income statements
B) balance sheets
C) accounts payable
D) purchase order"

Income statements

"This lists the assets, liabilities, and the equity of an organization.
A) balance sheet
B) accounts payable
C) income statement
D) payroll"

Balance sheet

"Regional managers can compare their regular sales reports with that of the other regional managers by using ________.
A) management reports
B) periodic reports
C) exception reports
D) demand reports"

Periodic reports

"An example of this type of report would be a sales report that shows that certain items are selling significantly above or below forecasts.
A) periodic
B) demand
C) inventory
D) exception"

Exception

"This system is a flexible tool for data analysis, since its reports do not have a fixed format.
A) management information system
B) decision support system
C) transaction processing system
D) executive support system"

Decision support system

"In a GDSS, the ________ is generally the decision maker.
A) programmer
B) technician
C) group
D) client"

Group

"This typically consists of transactions from the transaction processing system.
A) system software
B) external data
C) decision model
D) internal data"

Internal data

"This decision model helps middle-level managers control the work of the organization, such as financial planning and sales promotion planning.
A) strategic model
B) corporate model
C) tactical model
D) operational model"

Tactical model

"Some of these systems have the ability to retrieve information from databases outside the company, such as business-news services.
A) transaction processing system (TPS)
B) decision support system (DSS)
C) management information system (MIS)
D) executive support systems (ESS)"

Executive support systems (ESS)

"These systems are used in managing documents, communicating, and scheduling.
A) office automation systems
B) transaction processing systems
C) knowledge work systems
D) executive support systems"

Office automation systems

"Project resources can be scheduled, planned, and controlled using ________.
A) project managers
B) operational managers
C) knowledge work systems
D) CAD/CAM systems"

Project managers

"Which system is a type of artificial intelligence that uses a database, containing facts and rules, to provide assistance to users?
A) CAD/CAM system
B) expert system
C) knowledge work system
D) office automation system"

Expert system

"Effective operation within any organization requires an efficient and coordinated flow of ________ throughout the organization.
A) research
B) market awareness
C) information
D) accounting data"

Information

"The ________ department tracks all sales, payments, and transfers of funds.
A) marketing
B) production
C) research
D) accounting"

Accounting

"________-level managers need summarized information in weekly or monthly reports in order to develop budget projections and evaluate the performance of supervisors.
A) Middle
B) Upper
C) Low
D) Top"

Middle

"________-level information flow is primarily vertical.
A) Top
B) Supervisory
C) Low
D) Middle"

Supervisory

"Common names for computer-based information systems are transaction processing, management information, ________, and executive support systems.
A) virtual support
B) reflective information
C) decision support
D) cloud information"

Decision support

"TPS stands for ________.
A) triple port synchronization
B) Trojan prevention system
C) two-way processor synchronization
D) transaction processing system"

Transaction processing system

"Basic activities in every accounting department, including sales order processing, accounts receivable, inventory and purchasing, accounts payable, and payroll, are recorded in the ________.
A) general ledger
B) corporate database
C) inventory control system
D) accountant’s database"

General ledger

"When an order comes in, the ________ activity alerts the warehouse to ship a product.
A) inventory control system
B) sales order processing
C) decision support system
D) general ledger"

Sales order processing

"A typical ________ system can produce income statements and balance sheets.
A) management information
B) executive support
C) general ledger
D) decision support"

General ledger

"An MIS requires a(n) ________ management system to integrate data from different departments.
A) decision support
B) general ledger
C) executive support
D) database"

Database

"Monthly sales and production reports are examples of ________ reports.
A) periodic
B) executive
C) exception
D) on-demand"

Periodic

"A(n) ________ decision support system is used to support collective work.
A) executive
B) group
C) supervisory
D) transaction"

Group

"A decision support system consists of four parts: the user, system software, data, and ________.
A) management models
B) general ledger analysis
C) decision models
D) supervisory discretion"

Decision models

"________ consists of programs designed to work behind the scenes to handle detailed operating procedures.
A) Internal data
B) Decision support
C) External data
D) System software"

System software

"________ models assist top-level managers in long-range planning, such as stating company objectives or planning plant locations.
A) Strategic
B) Operational
C) Corporate
D) Tactical"

Strategic

"A(n) ________ support system is designed to be easy to use and allows someone to obtain essential information without extensive training.
A) management information
B) executive
C) decision
D) transaction processing"

Executive

"________ focus on managing documents, communicating, and scheduling.
A) Transaction processing systems
B) Knowledge work systems
C) Office automation systems
D) Executive support systems"

Office automation systems

"________ systems are also known as knowledge-based systems.
A) Office automation
B) CAD/CAM
C) Knowledge work
D) Expert"

Expert

"________ workers use OAS systems and are involved with the creation of information in their areas of expertise.
A) Knowledge
B) Executive
C) Corporate
D) Data"

Knowledge

"________ systems are computer systems that allow people located at various geographic locations to communicate and have in-person meetings.
A) Microsoft Project
B) Videoconferencing
C) Blogging
D) Virtual reality"

Videoconferencing

TRUE or FALSE:
The marketing department identifies, investigates, and develops new products and services.

"FALSE: ~ The RESEARCH department identifies, investigates, and develops new products and services."

TRUE or FALSE:
The research department identifies, investigates, and develops new products and services.

TRUE

TRUE or FALSE:
The research department strictly involves itself only with the creation of finished goods that are tangible.

"FALSE: ~ The PRODUCTION department strictly involves itself only with the creation of finished goods that are tangible."

TRUE or FALSE:
Supervisors’ responsibilities include operational matters.

TRUE

TRUE or FALSE:
Middle-level managers are responsible for tactical planning and the implementation of long-term goals.

TRUE

TRUE or FALSE:
Top-level managers need information both from within the organization and from outside.

TRUE

TRUE or FALSE:
The management information system records day-to-day transactions, such as customer orders, bills, inventory levels, and production output.

"FALSE: ~ The TRANSACTION PROCESSING SYSTEM (TPS) records day-to-day transactions, such as customer orders, bills, inventory levels, and production output. ~ The management information system (MIS) summarizes the detailed data of the transaction processing system in standard reports for middle-level managers. Such reports might include weekly sales and production schedules."

TRUE or FALSE:
The executive support system can analyze the effects of events and trends outside the organization.

"FALSE: ~ The DECISION SUPPORT SYSTEM (DSS) provides a flexible tool for analysis. It helps middle-level managers and others in the organization analyze a wide range of problems, such as the effect of events and trends outside the organization. ~ The executive support system (ESS presents information in a very highly summarized form. It helps top-level managers oversee the company’s operations and develop strategic plans."

TRUE or FALSE:
The executive support system helps top-level managers oversee the company’s operations and develop strategic plans.

TRUE

TRUE or FALSE:
Accounts payable refers to money the company owes its suppliers for materials and services it has received.

TRUE

TRUE or FALSE:
A purchase order form pertains to the payroll department.

"FALSE: ~ A purchase order is used to show the name of the company supplying the material or service and what is being purchased. ~ The payroll activity is concerned with calculating employee paychecks."

TRUE or FALSE:
An MIS differs from a TPS in that it creates databases.

"FALSE: ~ A transaction processing system (TPS) CREATES databases ~ A management information system (MIS) USES databases"

TRUE or FALSE:
Demand reports do not have to be produced on a regular basis.

TRUE

TRUE or FALSE:
In case of an unanticipated union strike, the manager in charge of manufacturing might consult the management information system to determine how it will affect production schedules.

"FALSE: ~ In case of an unanticipated union strike, the manager might consult the DECISION SUPPORT SYSTEM (DSS) to determine how it will affect production schedules. ~ A decision support system (DSS) enables managers to get answers to such unexpected and generally nonrecurring kinds of problems. "

TRUE or FALSE:
Office automation systems are designed primarily to support data workers.

TRUE

TRUE or FALSE:
Customer profiles, census data, and economic forecasts are examples of external data.

TRUE

TRUE or FALSE:
There are three basic decision models used in GDSS: operational, strategic, and financial.

"FALSE: Decision models give the DSS its analytical capabilities. There are three basic types of DSS decision models: strategic, tactical, and operational"

TRUE or FALSE:
Expert systems capture the knowledge of human experts and store it in a knowledge base.

TRUE

TRUE or FALSE:
Knowledge workers use specialized information systems, called KWSs, to create information in their area of expertise.

TRUE

TRUE or FALSE:
CAD/CAM systems use powerful personal computers running special programs that integrate the design and manufacturing activities.

TRUE

What are the five functions of an organization?

"1) Accounting 2) Marketing 3) Human Resources 4) Production 5) Research"

List the three levels of management.

"1) Top Management 2) Middle Management 3) Supervisors"

Name the four most common types of computer-based information systems.

"1) Transaction Processing System (TPS) 2).Management Information System (MIS) 3) Decision Support System (DSS) 4) Executive Support System (ESS)"

List the six activities that make up the basis of a typical accounting system.

"1) Sales order processing 2) Accounts receivable 3) Inventory and purchasing 4) Accounts payable 5) Payroll 6) Record 1-5 in the general ledger"

What are the three common categories of reports that are generated in most organizations?

"1) Periodic 2) Exception 3) Demand"

Describe the functions of a decision support system, including a group decision support system. Differentiate between a DSS and a transaction processing system.

"A DSS enables managers to get answers to such unexpected and generally nonrecurring kinds of problems. This being said, a TPS simply records data, a MIS summarizes structured, predetermined data, while a DSS is used to analyze data. Reports from a DSS do not have a fixed format thus enabling it a flexible tool for analysis. A DSS consists of four parts: the user, system software, data, and decision models. A DSS’s data consists of two kinds, internal and external, enabling data from within the organization to be compared to data gathered from outside. There are three base-types of DSS decision models (strategic, tactical, and operational) along with GDSS. A GDSS is specifically designed to support more than one or a team of decision makers, including tools to support group meetings and collective work."

What department records all financial activity from billing customers to paying employees?

Accounting

What department plans, prices, promotes, sells, and distributes the organization’s goods and services?

Marketing

What department focuses on people—hiring, training, promoting, and any number of other human-centered activities within the organization?

Human Resources

What department actually creates finished goods and services using raw materials and personnel?

Production

What department identifies, investigates, and develops new products and services?

Research

What are the five basic functions of organizational information flow? Most organizations have departments that each specialize in one of these basic functions.

"1) Accounting 2) Marketing 3) Human Resources 4) Production 5) Research"

What does the accounting department do?

"~ Tracks all financial activity ~ Produces financial statements, including budgets and forecasts of financial performance"

What does the marketing department do?

Handles planning, pricing, promoting, selling, and distributing goods and services to customers

What does the human resources department do?

Involved with all human-centered activities across the entire organization

What does the production department do?

"~ Creates finished goods and services using raw materials and personnel ~ It may be a manufacturing activity or, in the case of a retail store, an operations activity"

What does the research department do?

"~ Conducts basic research and relates new discoveries to the firm’s current or new products department ~ Identifies, investigates, and develops new products and services"

How does the TPS help supervisors?

By generating databases that act as the foundation for the other information systems

What is TPS?

"Transaction Processing System (TPS) ~ Helps an organization keep track of routine operations and records these events in a database. ~ The data from operations makes up a database that records the transactions of the company. ~ This database of transactions is used to support the MIS, DSS, and ESS. ~ Simply records data"

What is MIS?

"Management Information System (MIS) ~ Summarizes data in predetermined reports ~ A computer-based information system that produces standardized reports in summarized structured form ~ Used to support middle managers. ~ MIS can draw from the databases of several departments; thus, requiring a database management system that integrates the databases of the different departments ~ Produces reports that are predetermined ~ Follow a predetermined format and always show the same kinds of content ~ Three common categories of reports: periodic, exception, and demand"

What is DSS?

"Decision Support System (DSS) ~ Enables managers to get answers to unexpected and generally nonrecurring kinds of problems ~ Used to analyze data ~ Produces reports that do not have a fixed format, making the DSS a flexible tool for analysis ~ Consists of four parts: the user, system software, data, and decision models."

What is ESS?

"Executive Support System (ESS) ~ Consist of sophisticated software that can present, summarize, and analyze data from an organization’s databases ~ Specifically designed to be easy use for top-level management (w/ limited time) to obtain essential information w/o extensive training ~ Enable top-level management direct access to information about the company’s performance ~ Information is often displayed in very condensed form with informative graphics"

What is GDSS?

"Group Decision Support Systems (GDSS) ~ Specifically designed to support more than one or a team of decision makers ~ Include tools to support group meetings and collective work"

Who/What is a DSS "user"?

"Someone who has to make decisions—a manager, often a middle-level manager O’Leary, Timothy; O’Leary, Timothy. Computing Essentials 2019 (Page 252). McGraw-Hill Higher Education. Kindle Edition. "

What is system software?

"~ Essentially the operating system ~ Programs designed to work behind the scenes to handle detailed operating procedures"

Where is a DSS’s data typically stored?

In a database

What are the two types of data in a DSS?

Internal and External

What is a DSS’s internal data?

Data from within the organization—consists principally of transactions from the transaction processing system

What is a DSS’s external data?

Data gathered from outside the organization

What do decision models give the DSS?

Analytical capabilities

What are the three types of DSS decision models?

"1) Strategic 2) Tactical 3) Operational"

Describe a DSS strategic decision model.

Assist top-level managers in long-range planning, such as stating company objectives or planning plant locations

Describe a DSS tactical decision model.

Help middle-level managers control the work of the organization, such as financial planning and sales promotion planning

Describe a DSS operational decision model.

Help lower-level managers accomplish the organization’s day-to-day activities, such as evaluating and maintaining quality control

What are the four parts of a DSS?

"1) User 2) System software 3) Data 4) Decision models"

What are the three common categories of MIS reports?

"1) Periodic 2) Exception 3) Demand"

What is an MIS periodic report? Give an example.

"~ Produced at regular intervals (weekly, monthly, quarterly, etc.) ~ Monthly sales and production reports: The reports from district managers are combined into a monthly report for the regional managers."

What is an MIS exception report? Give an example.

"~ Calls attention to unusual events ~ A sales report that shows that certain items are selling significantly above or below marketing department forecasts. Ex. – if fewer exercise bicycles are selling than predicted for a sales region, the regional manager will receive an exception report. That report may be used to alert district managers and salespeople to give the product more attention."

What is an MIS demand report? Give an example.

"~ Produced upon request ~ A report on the numbers and types of jobs held by minorities. Such report is not needed periodically, but may have been requested by the U.S. government"

What is the purpose of a MIS?

To give a standardized report in a summarized, structured form to suppport middle-level managers

What are predetermined reports?

Reports that follow a predetermined format and always show the same kinds of content

What is a DPS?

Data Processing System – another name for TPS

One of the most essential transaction processing systems for any organization is in what area?

Accounting

Every accounting department handles what six basic activities?

"1) Sales order processing 2) Accounts receivable 3) Inventory and purchasing 4) Accounts payable 5) Payroll 6) Record 1-5 in the general ledger"

What is the "sales order processing" activity performed by an accounting department?

Records the customer requests for the company’s products or services

What is the "accounts receivable" activity performed by an accounting department?

Records money received from or owed by customers

What is the "purchasing" activity performed by an accounting department?

The buying of materials and services

What is the "accounts payable" activity performed by an accounting department?

Refers to money the company owes its suppliers for materials and services it has received

What is the "payroll" activity performed by an accounting department?

Concerned with calculating employee paychecks

What is the "general ledger" and what does it produce?

"~ Keeps track of all summaries of all of the transactions handled by the accounting department ~ Can produce income statements and balance sheets."

Define inventory.

The parts and finished goods that the company has in stock

What is an inventory control system?

Keeps records of the number of each kind of part or finished good in the warehouse

What is a purchase order?

A form that shows the name of the company supplying the material or service and what is being purchased

What does an income statement show?

A company’s financial performance—income, expenses, and the difference between them for a specific time period

What does a balance sheet show and include?

"~ The overall financial condition of an organization ~ Include assets, liabilities (debts), and how much of the organization (the equity) is owned by the owners"

What system records day-to-day transactions, such as customer orders, bills, inventory levels, and production output, and helps supervisors by generating databases that act as the foundation for the other information systems?

Transaction Processing System (TPS)

What system summarizes the detailed data of the transaction processing system in standard reports for middle-level managers? These reports might include weekly sales and production schedules.

Management Information System (MIS)

What system provides a flexible tool for analysis and helps middle-level managers and others in the organization analyze a wide range of problems, such as the effect of events and trends outside the organization?

Decision Support System (DSS)

What system is an easy-to-use system that presents information in a very highly summarized form and helps top-level managers oversee the company’s operations and develop strategic plans?

Executive Support System (ESS)

What is EIS?

Executive Information System (EIS) – another name for ESS

What system combines the databases generated from the TPS and the reports generated from the MIS with external data?

Executive Support System (ESS)

Who uses an ESS?

Top-level managers

Who uses a DSS?

Middle-level managers

Who uses a MIS?

Middle-level managers

Who uses/benefits from a TPS?

Supervisors

What are the three levels of management?

"1) Top Management 2) Middle Management 3) Supervisors"

Describe the "top-management" management level.

"~ Concerned with long-range planning (also called strategic planning). ~ Need information that will help them plan the future growth and direction of the organization"

Describe the "middle-management" management level.

"~ Deal with control, planning (also called tactical planning), and decision making ~ Implement the long-term goals of the organization"

Describe the "supervisors" management level.

"~ Manage and monitor the employees or workers ~ Responsibility relating to operational matters ~ Monitor day-to-day events and immediately take corrective action, if necessary"

What is another term for long-range planning?

Strategic Planning

Define "Information System".

A collection of people, procedures, software, hardware, data, and connectivity, that all work together to provide information essential to running an organization. This information is critical to successfully produce a product/service and to derive a profit.

What is the information flow for top-level management? Give examples.

"Vertical, horizontal, and external ~ VP of marketing communicates vertically w/ regional sales managers, horizontally w/ other vice presidents, and externally to obtain data to forecast sales."

What is the information flow for middle-level management? Give examples.

"Vertical and horizontal ~ Regional sales managers communicate vertically w/ district sales managers and the VP of marketing, and horizontally w/ other middle-level managers"

What is the information flow for supervisory-level management? Give examples.

"Primarily vertical ~Production supervisors monitor worker activities to ensure smooth production and provide daily status reports to middle-level production managers"

Which system uses internal data from MIS and TPS and external data to support top-level managers, enabling them to view current marketing operations and to develop long-term marketing strategies?

Executive Support System (ESS)

Which system uses data from TPS and a set of flexible analytical tools to support middle managers?

Decision Support System (DSS)

Which system uses data from the TPS to support middle-level managers?

Management Information System (MIS)

Which system records day-to-day transactions to support supervisors?

Transaction Processing System (TPS)

Why type of system tracks routine operations and records events in databases and is also known as data processing systems?

Transaction Processing System (TPS)

Why type of system produces standardized reports (periodic, exception, and demand) using databases created by TPS?

Management Information System (MIS)

Why type of system analyzes unanticipated situations using data (internal and external) and decision models (strategic, tactical, and operational)?

Decision Support System (DSS)

Why type of system presents summary information in a flexible, easy-to-use, graphical format designed for top executives?

Executive Support System (ESS)

What is an information worker?

"~ Distribute, communicate, and create information. ~ An organization’s administrative assistants, clerks, engineers, scientists, ect. "

What is a data worker?

Involved with distribution and communication of information (administrative assistants and clerks)

What is a knowledge worker?

Involved with the creation of information (engineers and scientists)

What are the two systems that support information workers?

Office Automation Systems (OAS) and Knowledge Work Systems (KWS)

What is OAS?

"Office Automation Systems (OAS) ~ Designed primarily to support data workers. ~ Focus on managing documents, communicating, and scheduling. ~ Documents are managed using word processing, web authoring, desktop publishing, and other image technologies"

What is KWS?

"Knowledge Work Systems (KWS) ~ Specialized information systems used by knowledge workers to create information in their areas of expertise"

What are CAD/CAM systems?

"Computer-Aided Design (CAD) / Computer-Aided Manufacturing (CAM) Systems ~ Used by engineers involved in product design and manufacturing ~ A type of KWS that consists of powerful personal computers running special programs that integrate the design and manufacturing activities "

What are videoconfrencing systems?

Computer systems that allow people located at various geographic locations to communicate and have in-person meetings

What are project managers?

Programs designed to schedule, plan, and control project resources

What is the most widely used project manager?

Microsoft Project

What are Expert Systems?

"~ Captures the knowledge of a human expert and makes it accessible to others through a computer program ~ A type of artificial intelligence that uses a database to provide assistance to users"

What are Expert Systems also known as?

Knowledge-Based Systems

What is an Expert Systems’ database called and what does it contain?

"~ Knowledge Base ~ Contains facts and rules to relate these facts distilled from a human expert"

How do users interact with an Expert System?

By describing a particular situation or problem. The expert system takes the inputs and searches the knowledge base until a solution or recommendation is formulated

What is a career as an information systems manager consist of?

"~ Overseeing the work of programmers, computer specialists, systems analysts, and other computer professionals ~ Create and implement corporate computer policies and systems"