Role of Computers in Management

Introduction:--
Prof H .A. Simon views the computer as the fourth great breakthrough in history to aid man in his thinking process and decision-making ability. The first was the invention of writing which gave man a memory in performing mental tasks. The second one is devising of the Arabic number system with its zero and positional notation. The Third one is invention of analytic geometry and calculus, which permitted the solution of complex problems in scientific theory. The electronic digital computers combine the advantages and attributes of all these breakthroughs and make them available for decision-making and management of organizations.

According to Joel E. Ross, Management Information System can be defined as a communication process wherein information is recorded, stored, processed and retrieved for decision regarding the managerial process of planning, organizing and controlling. Decision-making and information processing are inter-dependent. Computerized MIS cannot technically make a decision but it can yield processed data and follow instructions to the extent of its capacity. For example, the computer can be properly instructed to compare inventory levels with programmed decision-rules on re-order level and re-order quantity, and generate purchase requisition, purchase enquiry and purchase order. This can resemble an automatic control of purchase documents.

In modern complex organization, the levels of information handling can be divided as decision support system, management information system, transaction processing system, and office automation system (paperless office)