Question

An organisation is a collection of interdependent decision- making units that exists to pursue organisational objective . In the light of this statement, Explain the relationship between information and decision . Also explain the role of transaction processing system in facilitating the decision - making process in business organisations.

Answer 1

There is a great relationship between information and decision Every organisation accepts inputs and transforms them into outputs. All organisation systems pursue certain objective through a process of resource allocation , which is accomplished through the process of managerial decision -making . Information facilities decision regarding allocation of resources and thereby an organisation in achieving its objective.
Every medium sized to large organisation has a well- established information system that is meant to generate the information required for decision - making . with the increasing use of information system in organisation ,Transaction Processing System (TPS) have started playing a vital role in supporting business operation .
Every transaction processing system has three components Input Processing and output, Since Information technology (IT) follows the GIGO principle (Garbage in Garbage out),it is necessary that inputs to the it-based information system is accurate ,complete and authorised. This is achieved by automating the input. A large number of the devices are now available to automatic the inputs process for a TPS.
Transaction Processing System Transaction Processing System (TPS) are among the earliest computerized system catering to the required of large business enterprises. The purpose of typical TPS is to record process,validate and store transaction that occurs in the various functional areas of a business for subsequent retrieval and usage .
A transaction could be internal or external, The scope of financial accounting is confined to external transactions only, whereas through transaction processing system we record all the transaction internal as well as external.