Formal information systems are primarily used in assessing, analyzing, preparing and transferring information and data. Among the numerous duties done by managers include developing of a variety of presentation of the factual information in any field of reports, activity, analyses as well as draft decisions.
The formal information management systems are composed of data and information resources such as databases and archives, information requirements of the consumers such as managers and employees, information consumers who can be both internal and external to the corporation, and communication subsystems which are mainly the technology. The main features of the system are performing the roles of identifying, diagnosing and solving problems, thematic relationship of the information needs of the users and resources to a range of fields of management such as human resources, finance and production, and it is situated in the company’s organizational system as a IT department or division with a capability of functioning in a distributed structure (Wozniak, 2016).
There are a variety of advantages associated formal information management technologies. The systems serve as frameworks in the organization of the business computer applications which ought to be perceived as integrated and interrelated computer-based information technologies rather than independent information processing task. The technologies also emphasize on the orientation management of electronic information processes in a corporation. The main objective of the computer based data technologies should be the assessment of information derived from business operations (Management-Hub.com, 2018)
Other advantages are that the technologies act as an integrated systems that offer data and information for the support of the planning and controlling duties of a manager in an institution. The technologies offer information which serves part of the managerial services. They also assist managers in decision making, planning as well as controlling decisions which are a necessity in the performance of any business. This also helps in the controlling and monitoring of operations in any organization and ensures there is controlling the light targets and plans initiated in the planning stage (Management-Hub.com, 2018).
Despite the advantages, there are various disadvantages. These include the fact that the systems are faced by security challenges such as hackers who can access the information systems by targeting the company data and information archives. The information targeted by hackers include bank records, vendor information, personal data and intellectual properties. Such information can be used for blackmail and fraud purposes, sell it to competitors or upload it the internet sites. The systems are also associated with absence of job security and unemployment. Through the implementation of the information management technologies can save a lot of time consumed in the completion of duties and tasks. They ensure immediate processing of paperwork and forms and financial statements. With constant improvements in the technological fields, most human workers are relieved off their duties thus becoming unemployed (Muhsinzoda, 2015).
There are a variety of limitations associated with formal information management systems. One of the most conspicuous is the implementation costs and expenses incurred. A substantial amount of capital is required first in the initial stages of its implementation. These include the costs used to cater for software, hardware and personnel required in the setting up of the systems. More expenses are incurred in instances where some hardware, software among other services need to be rented, purchased and supported after implementation. Lack of skills and knowledge in regard to the systems is also a limitation. Most workers are required to go for training and orientation in the areas they are unfamiliar with. Such exercises and processes can be time consuming and expensive thus limiting the business (Muhsinzoda, 2015).
Bibliography
Management-Hub.com, 2018. Various Advantages of Information Management Systems. [Online]
Available at: http://www.management-hub.com/information-management-advantages.html
[Accessed 2018].
Muhsinzoda, M., 2015. Advantages and disadvantages of information systems. [Online]
Available at: https://blogs.deusto.es/master-informatica/advantages-and-disadvantages-of-information-systems/
[Accessed 6 December 2015].
Wozniak, K., 2016. How do formal and informal information systems differ?. [Online]
Available at: https://www.quora.com/How-do-formal-and-informal-information-systems-differ
[Accessed 25 November 2016].
http://www.management-hub.com/information-management-advantages.html
https://blogs.deusto.es/master-informatica/advantages-and-disadvantages-of-information-systems/
https://www.quora.com/How-do-formal-and-informal-information-systems-differ
