Functional Information Systems

Recently updated on April 13th, 2023 at 05:45 pm

Functional Information System is based on the various business functions such as Production, Marketing, Finance and Personnel etc. These departments or functions are known as functional areas of business. Each functional area requires applications to perform all information processing related to the function. The popular functional areas of the business organization are:

  • Financial Information System
  • Marketing Information System
  • Production/Marketing Information System
  • Human Resource Information System

(i) Financial Information System

Financial information system is a sub-system of organizational management information system. This sub-system supports the decision-making process of financial functions at the level of an organization.

(ii) Marketing Information System

This sub-system of management information system provides information about various functions of the marketing system of an organization. Marketing is another functional area of the business organization, which is engaged in marketing (selling) of its products to its customers.

Important functions of the marketing process include the following.

  • The marketing identification function
  • The purchase motivation function
  • The product adjustment function
  • The physical distribution function
  • The communication function
  • The transaction function
  • The post-transaction function

(iii) Production /manufacturing Information System

Manufacturing or production information system provides information on production /operation activities of an organization and thus facilitates the decision-making process of production managers of an organization. The main decisions to be taken in manufacturing system is Product Design

(iv) Human Resources Information System  

This functional information system supports the functions of human resource management of an organization. The human resource management function, in its narrow sense, it also known as personnel management .The function involves:

  • Manpower planning
  • Staffing
  • Training and development
  • Performance evaluation, and
  • Separation activities

Characteristics of Functional Information System

Equipment Requirements of Functional Information System

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