LEARNING UNIT 1: Introduction to information management systems

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Video Activity Text Additional Reading and References

1.1 LEARNING OUTCOMES

After completing this learning unit, you should be able to

• formulate an opinion of what comprises an information management system

• identify the characteristics of useful information
• critically explain how the classification of the information management systems assists operational and
managerial support roles in organisations
• interpret how the management of information systems could be compromised by some stakeholders in the
quest to deviate issues in society
• explain how the use of technology could be maximised to ensure the accurate and credible dissemination of
information to stakeholders

1.2 OVERVIEW OF THE UNIT

This learning unit provides an introduction to information management systems. Organisations depend on a steady
stream of reliable, accurate and timely information from both internal and external sources in order to make sound
decisions (Smit, Botha, Vrba & Ngambi 2016:187). In an era where information is available in almost any format
and at all times, managers often run the risk of information overload. In this learning unit we will address the ways
of managing information and explain the relevance of utilising systems in organisational decision-making.

1.2.1 Various components of an information management system

Information is a fundamental resource of government, along with people, money and institutions. In this context,
there are three interrelated concepts of information that we need to consider. These three concepts have been
adopted by government and should therefore receive our attention.
Information management (IM) is concerned with the management of information resources in government. It
focuses on the use of information, the roles and responsibilities of those using the information resources and the
controls, performance measures and business processes and objectives related to their use (Barnes 2020).
Information systems (ISs) focus on the applications required to manage the information resources. They are
therefore concerned with the development, operation, maintenance and upgrading of the systems used to achieve
government objectives (Alzoubi 2018).
Information technology (IT) focuses on the technology required to support the applications (programs) or systems

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(FMS, BAS, Persal, etc.). It therefore focuses on the technological choices and standards required to make these
choices to support the particular systems involved in the overall information management strategy.
The use of the information resource encompasses all three of the above concepts. However, when referring to all
three aspects at once, we will use the term “information management, systems and technology” (IMST) on the
assumption that it encompasses the others (Zaqout, Abu-Naser, El Talla & Al Shobaki 2018).

Activity 1.1 — video

Watch the following video for an introduction to the concept of management of information systems:

https://www.youtube.com/watch?v=1YTwuDXy77Y

Go to Discussion Forum 1.1 and formulate an opinion of what constitutes a system of management of information.
Why is it relevant for 21st century organisations?

• Guidelines for participating in forums

- Compile your post offline and keep record of it.
- Use an academic writing style for referencing and citing the sources you used.
- Post your answer on the forum.
- Reply to contributions of at least two of your fellow students.

1.2.2 Characteristics of useful information

Information is only useful in public sector organisations if it is clear, understandable and relevant to assist in
decision-making. So, in order to be useful in decision-making, information provided should satisfy some of the
following requirements:

Relevant
Information will be considered as relevant if it has the potential to influence the organisational decision that is about
to be made. Relevant information is essential in aiding the users to predict future events or provide feedback about
prior expectations for better decision-making in organisations (Frank 2020).

Accurate
The useful information must be correct and free from errors and
misinterpretation. Accurate information has to clearly state the facts and provide a faithful representation of them.
Inaccurate information will lead to wrong judgement and ill-informed decision-making. Accuracy in information
management refers to the faithful representation of information, where it is error-free, complete and neutral (Frank
2020).

Reliable
In order to be useful, information must be obtained from a reliable source and prepared objectively and free from
any bias. This information should be trustworthy and verifiable as it should be consistent with the facts ( Hassenstein
& Vanella 2022).

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Timely
Information must be obtainable on time as and when it is needed to be used for decision-making. If the information
is only available after the decision is made, then it is considered not useful as it does not help decision-making
(Hassenstein & Vanella 2022).

Understandable
Information is useful if it can be easily read and understood by the decision-maker. If the information attained is
misunderstood by the decision-maker, it will be inappropriate to use that information because it will lead to wrong
decisions made (Hassenstein & Vanella 2022).

Cost-effective
This is one of the important features of information. It refers to the cost involved in the collection of information.
The cost of collection should be within the decided set limit. High-cost information may affect the budget of an
organisation. Efforts should be made to acquire the information at a reasonable rate (Hassenstein & Vanella
2022).

1.2.3 Classification of the various information systems

Public institutions that use information systems often find that they need several kinds of systems to manage their
information effectively. The most common kinds of information systems are transaction-processing systems,
management information systems, decision support systems and executive information systems.

Transaction-processing systems
Transaction-processing systems (TPSs) are the first computerised form of information system many institutions
adopt. A TPS is a system designed to handle routine and recurring transactions within the institution. In general, it
is most useful when the institution has a large number of highly similar activities to process. The car licence renewal
system and the system used for paying your monthly water and electricity account are good examples of a
transaction-processing system (Gabriel 2019).

Management information systems

The next step in the evolution of information management is generally called the management information system
(MIS). An MIS is a system that gathers comprehensive data, organises it, summarises it in a form that is of value
to operational managers and then provides those managers with the information that they need to do their work
(Gabriel 2019).

Decision support systems

An increasingly common information system is called a decision support system (DSS). A DSS is an elaborate and
quite powerful system that can automatically search for, manipulate and summarise information needed by
managers for specific decisions. A DSS is more flexible than a traditional MIS and can assist managers in coping
with non-routine problems and decisions. However, DSSs are extremely complex. They take considerable time and
resources to develop; maintaining them and teaching managers how to use them effectively takes even more time
and resources. They are, however, valuable for improving the quality of information for better decision-making
(Gabriel 2019).

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 Executive information systems
Executive information systems (EISs) are the latest form of information system. An EIS is a system designed to
meet the special information-processing needs of top managers. Executives don’t need technical knowledge to use
an EIS; the system is constructed to be user-friendly. An EIS generally uses icons and symbols and requires few
commands. The information it provides allows managers to bypass details and get directly to overall trends and
patterns that may affect strategic decision-making. It summarises information rather than provides specific details.
It also tailors the information to the specific needs of the manager (Gabriel 2019).

Activity 1.2
Read chapter 7 of Smit et al (2016) and then, in an essay of a maximum of 3 500 words, answer the following
question:
Information systems perform operational and managerial support roles in organisations. Discuss the conceptual
classification of the various information systems in a public organisation.
• Formatting requirements: Arial font, 11 pitch and 1.5 line spacing.
• Introduction (The introduction is a synopsis of what the assignment entails. In this section, make sure that
you do not explain in too much detail. A simple summary is enough.)
• Body/background (The body/background is a detailed explanation of what needs to be discussed. In this
section, you need to include headings and sub-headings.)
• Conclusion (This section is a summary of the entire assignment. Please note that no new information can
be included in this section.)
• Referencing:
o Use in-text references.
o List all the sources you referred to in your essay answer, in alphabetical order (± 12 sources).
• Submit your assignment online in PDF.

1.2.4 Using management information systems to support decision-making

An MIS is concerned with the process of collecting, processing, storing and transmitting relevant information to
support the management operations in organisations. Therefore, the success of decision-making, which is the core
of administrative processes, depends significantly on available information. The existence of the different
alternatives that are based on relevant and timely information is a necessary condition for making a decision. The
MIS is useful in the area of decision-making and it can ensure monitoring and evaluation and detect interruptions
within itself. Furthermore, the MIS in decision-making provides information that is needed for better decision-making
on the issues affecting the organisation and also assists in programming some of the information for future
reference and scenario planning (Nwankwo, Ugwude & Ugwude 2020).

Activity 1.3
Read the article by Andrew Cave (The Guardian) (https://www.theguardian.com/media/2017/sep/05/bell-
pottingersouth-africa-pr-firm) and answer the following question: In a summarised essay of 150 words, provide
the reasons for the alleged manipulation of information by Bell Pottinger to benefit their associated companies in
South Africa.
• Formatting requirements: Arial font, 11 pitch and 1.5 line spacing.

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• Introduction (The introduction is a synopsis of what the assignment entails. In this section, make sure that
you do not explain in too much detail. A simple summary is enough.)
• Body/background (The body/background is a detailed explanation of what needs to be discussed. In this
section, you need to include headings and sub-headings.)
• Conclusion (This section is a summary of the entire assignment. Please note that no new information can
be included in this section.)
• Referencing:
o You may not use references: this is an opinion piece.
• Submit your assignment online in PDF.

Activity 1.4 — case study: The COVID-19 numbers man

Read the case study entitled “The COVID-19 numbers man” (pp. 4-6
https://issuu.com/gcispsm/docs/psm_october_2021). Through the e-tutors, in your groups of 5-7 members, write
an essay of 3 500 words to answer the following questions:
a. How has the usage of technology assisted in sharing information during the COVID-19 global pandemic
with various stakeholders for decision-making?
b. To what extent is the analysis of credible and accurate information important to the decision-making
process and ultimately informing public policies?
Your answers must be submitted via a Group Blog.

• Formatting requirements: Arial font, 11 pitch and 1.5 line spacing.

• Introduction (The introduction is a synopsis of what the assignment entails. In this section, make sure that
you do not explain in too much detail. A simple summary is enough.)
• Body/background (The body/background is a detailed explanation of what needs to be discussed. In this
section, you need to include headings and sub-headings.)
• Conclusion (This section is a summary of the entire assignment. Please note that no new information can
be included in this section.)

• Referencing:
o Use in-text references.
o List all the sources you referred to in your essay answer, in alphabetical order (± 20 sources).
o Submit your assignment online in PDF.

1.3 REFERENCES

• Ajayi, IA & Omirin, FF. 2007. The use of management information systems (MIS) in decision
making in the South-West Nigerian universities. Educational Research and Review, 2(5):109-116.

• Alzoubi, HM. 2018. The role of intelligent information system in e-supply chain management
performance. International Journal of Multidisciplinary Thought, 07(02):363–370.

• Barnes, SJ. 2020. Information management research and practice in the post-COVID-19 world.
International Journal of Information Management, 55(2020):1-4.

• Cave, A. 2017. Deal that undid Bell Pottinger: inside story of the South Africa scandal. The
Guardian, 5 September 2017. https://www.theguardian.com/media/2017/sep/05/bell-

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 pottingersouth-africa-pr-firm

• Frank, EO. 2020. An assessment of the conceptual linkages between the qualitative characteristics
of useful financial information and ethical behaviour within informal institutions. Economic
Horizons, 22(2):137–148.

• Gabriel, AO. 2019. A review of the role of different information systems in modern organisations.
International Journal of Educational Research and Management Technology, 4(3):13-21.

• Government Communications and Information Systems (GCIS). 2021. Dr Ridhwaan Suliman – the
COVID-19 numbers man. October edition. https://issuu.com/gcispsm/docs/psm_october_2021

• Hassenstein, MJ & Vanella, P. 2022. Data quality—concepts and problems. Encyclopedia, 2:498–
510.

• Nwankwo, IN, Ugwude, AC & Ugwude, DI. 2020. Management information systems (MIS) data
collection methods for university administrators’ decision-making process in South East Nigeria
universities. African Journal of Educational Management, Teaching and Entrepreneurship
Studies, 1(1):14-22.

• Smit, PJ, Botha, T, Vrba, MJ & Ngambi, HC. 2016. Management principles: a contemporary edition
for Africa. 6th ed. Cape Town: Juta. (Chapter 7: Information Management)

• Zaqout, I, Abu-Naser, SS, El Talla, SA & Al Shobaki, MJ. 2018. Information technology used and its
impact on the participation of administrative staff in decision-making in Palestinian universities.
International Journal of Academic Multidisciplinary Research, 2(8):7-26.

1.4 CONCLUSION
Information is imperative in decision-making in organisations. The operations, management and strategic success
of organisations rely heavily on accurate and reliable information. The systems through which this information is
coded and transformed from pure data are essential in the entire value chain of organisational decision-making.

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