Information is the backbone of the organisational activities and the epitome of the management of an organisation. Every organisation relies on information to work out its activities. Information system is a system of infrastructures such as computers that gathers analyses or sends information. It also provides information regarding the organization and its interaction with the outside world. On the same note, it is responsible for the storage and retrieval of data to be used to make important decisions in an organisation.
Maintains and the scope of the information that it generates
Data output may include sales volume, expenses, and the amount of tax to be paid. This will determine the profitability of an organisation. On the same note, staffing data is also maintained in the information systems and this helps in solving issues such as retirement benefits, compensation, and promotion, depending on the performance evaluation of an employee. The use of information systems helps in the minimisation of time wastage in addition to getting statistics that are important in an organisation. The system is also accurate and therefore providing an organisation with accurate data that can be relied upon.
Several structures in an organisation work together to enhance communication within an organisation succeed. Despite this, there are challenges that may occur as a result of failure of having a definite rating scale of some factors such as observable behaviour. This presents a challenge because it depends on personal judgment yet the data stored will be crucial in analysis of such information.