The role of information systems in management decision making – an theoretical approach

Abstract

In modern conditions of globalisation and development of information technology, information processing activities have come to be seen as essential to successful of businesses and organizations. Information has become essential to make decisions and crucial asset in organisations, whereas information systems is technology required for information processing. The application of information systems technology in business and organisations has opened up new possibilities for running and managing organisations, as well as has improved management decision making. The purpose of this paper is to give an understanding of the role that information systems have in management decision making and to discuss the possibilities how managers of organisations can make best use of information systems. The paper starts with identifying the functions of management and managerial roles and continue with information systems usage in three levels of decision making. It specifically addresses the way how information systems can help managers reduce uncertainty in decision making and includes some important implications of information systems usage for managers. Thus, this study provide a framework of effective use of information systems generally and offers an alternative approach to investigate the impact that information systems technology have in management decision making specifically

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