Systems are introduced in organizations to enable the Management to better manage and control the various functions. Building an interrelated set of procedural checks at various levels through which the management gets better control over the operations and assets of the organization does this. This not only permits to obtain a higher yield on capital employed but also throws up areas, which need greater management attention. Systems depersonalize the routine activities so that managers can concentrate on those areas, which need their specific attention. Systems also ensure continuity. This may be done by the following means :
A. Management Information Systems & Systems Manuals for Operations
Design of a Management Information System by which each level of management gets information that is either essential or vital for it. Attempt is made to ensure that there is neither an information overflow nor underflow. While the former makes identification and concentration on the critical areas difficult, the latter leads to frequent crisis. MIS design can either be Manual based or Computer based depending upon the nature of the activities of the organization.Basically designed as a supplement to the Accounting Manual, covering those areas where information other than accounting is involved. Specifically covers Sales, Purchase, Production, Stocks, Stores, and other allied areas.