Question

1. In a tabular format given below, name the three basic levels of financial information systems in a typical business organization and state in each case the kind of support that each gives to management in decision making. Provide two sub-systems under each level.

Basic Level	Support to Management	Sub-systems

Answer 1

BASIC LEVEL	SUPPORT TO MANAGEMENT	SUB-SYSTEM
Operational management level	The operational level is concerned with performing day to day business transactions of the organization. For example, if a store sells items on credit and they have a credit policy that has some set limit on the borrowing. All the sales person needs to decide whether to give credit to a customer or not is based on the current credit information from the system	1.Users at this level use make structured decisions 2.they have defined rules that guides them while making decisions.
Tactical Management Level	This organization level is dominated by middle-level managers, heads of departments, supervisors, etc. The users at this level usually oversee the activities of the users at the operational management level. As an example, a tactical manager can check the credit limit and payments history of a customer and decide to make an exception to raise the credit limit for a particular customer. The decision is partly structured in the sense that the tactical manager has to use existing information to identify a payments history that benefits the organization and an allowed increase percentage.	1.Tactical users make semi-structured decisions. 2.decisions are partly based on set guidelines and judgmental calls.
Strategic Management Level	This is the most senior level in an organization. The users at this level make unstructured decisions.	1.Senior level managers are concerned with the long-term planning of the organization 2.They use information from tactical managers and external data to guide them when making unstructured decisions.