A business firm has different systems to support different levels of management . These systems include transaction processing systems , management information system , decision support system . # Transaction Processing System ( TPS ) :
TPS mainly supports operational ( lower level ) managers to keep track of the elementary activities and transaction of the organization ,such as sales , receipts , cash deposits , payroll etc . Therefore , a TPS is a computerized system that performs and records the daily routine transaction necessary to conduct business . At the operational level task resources are predefined and highly structured .
# Management Information System (MIS) :
MIS help the middle managers with monitoring , controlling , decision making and administrative activities . MIS provide the middle managers with reports on the organization’s current performance . and this information is used to monitor and control the business and predict future performance .
## How does MIS obtain the data from organizational TPS ?
MIS summarize and report on the company’s basic operations using data supplied by the TPS . The basic transaction from TPS are compressed and presented in form of reports that are produced on a regular schedule . MIS then transforms these summarized transaction level data from order processing , productions and accounting into MIS files that are provided to the managers
In the system illustrated by this diagram, three TPS supply summarized transaction data to the MIS reporting system at the end of the time period. Managers gain access to the organizational data through the MIS, which provides them with the appropriate reports.
The TPS deals with the daily transaction going on within a firm and produce daily reports based on them . Such as order files and accounting files . These files then goes through certain processing system which turns them into MIS files . As we can see in the figure the particular order...
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