Answer 1: The flow of information within the business
environment plays a very crucial role in the uplift ment of the
organization. Proper and smooth flow of information within the
business organization is very essential for all the activities that
are carried out in the firm. Proper flow of information ensures
timely action on the business activities. The primary information
flows within the business environment can be summarized as
below
- Upward Flow: Information in this type flows from downward to
upward direction. That is the flow of information takes place from
the lower level management to the topmost level management. Such
type of information flow takes place when information relating to
progress of work, progress reports, issues relating to grievances
are shared by the lower level to the topmost level
- Downward Flow: Information flows from the top level management
to the lower level managers. The flow of information is from top to
bottom. The information that passes is relating to orders relating
to performance of a project, summoning up of any employee by the
top level management etc.
- Horizontal Flow: Flow of information is at the same level
within the organization. Such type of information flow is also
called as peer to peer communication. The information that is
shared may be related about a project taken up by the company or
inter departmental communication regarding flow of of funds
etc.
- Diagonal Flow: Such type of information flow takes place when
there is cross functional sharing of information within the
employees and staff of the organization. For instance the Head of
the production department may send an email to the head of the
packaging department regarding the availability of empty packages
available and so on.
Answer 2 :
- Accounting Information System is a standardized system of
maintaining and recording the financial transactions in a firm. All
the firms have to follow a prescribed accounting system according
to which they have to maintain their books of accounts. Management
information system pertains to the managers within an organization
which is designed to assist the managers in planning, implementing
those plans, and controlling of the organization and also decision
making
- Management information System has a wider scope as compared to
Accounting Information System.In other words AIS is a
subset of MIS because MIS talks about the organization as a whole
and AIS is limited to accounting of the books of the firm
- AIS makes use of the books of accounts ie. the financial data
of the organization whereas MIS makes use of the non financial data
of the firm.
- MIS makes use of the financial information provided by the AIS
and hence managers can take managerial decisions wisely.
Answer 3:
- Financial Transactions involve flow of funds be it inter
departmental or at the organizational level. Basically cash is
involved in Financial Transactions. Whereas Non Financial
Transactions involve mainly flow of information from one level to
another.
- Financial Transactions have a direct impact on the working of
the Transactions. The impact is reflected in the books of accounts
of the firm. Non Financial Transactions impact the goodwill of the
firm.
- Financial Transactions are reflected in the books of accounts
of the firm whereas NFT is not reflected in the books of accounts.
It is only absorbed at the levels within a firm.
- Examples of FT are transfer of cash from one account to another
and NFT is sharing of information regarding the performance of
employees with the top level management.
Answer 4: Features of a general information system are as
follows
- Accurate flow of information: The flow of information be it in
any direction should be accurate and precise. Information should
not be tampered.
- Quick Access to information: The access to information should
be quick and proper.
- Coordination: There should be proper coordination in the
managers so that information that flows is accurate and
correct.