---
title: "IS classification by management level"
subject: "Information System"
chapter: 1
key: "semester_8/information_system:is-classification-management-levels"
source: https://www.bctengineer.com/q/semester_8/information_system/is-classification-management-levels
site: BCT Engineering
---

# IS classification by management level

Information System · Chapter 1: Information Systems

- Asked in: 2071 Bhadra, 4 marks
- Video: [Types of Information Systems | TPS, MIS, DSS and ESS Explained](https://www.youtube.com/watch?v=oJBHpd7N_Og) — The Learning Studio
- Answer checked by Claude Opus 5.5 (high effort) on 2026-10-14
- Page: https://www.bctengineer.com/q/semester_8/information_system/is-classification-management-levels
- Whole chapter: https://www.bctengineer.com/md/semester_8/information_system/chapter-1

## Question

Discuss different classification of information system with regard to different level of management. Provide suitable examples to support your answer.

## Short answer

At the operational level, TPS handles routine transactions like payroll; at the knowledge level, OAS and KWS support office and design work; at the management level, MIS provides summary reports and DSS offers decision models; at the strategic level, ESS presents aggregated dashboards for top executives.

## Answer

Organizations have three management levels, and information systems are classified by the level they mainly serve.

```text
 Strategic level    -> ESS
 Management level   -> MIS, DSS
 Operational level  -> TPS
 (Knowledge level   -> KWS, OAS)
```

| Level | Managers | System | Nature of decisions | Example |
|---|---|---|---|---|
| Operational | Supervisors, clerks | **TPS** | Structured, routine, daily | Payroll, order entry, ATM, ticket booking |
| Knowledge | Engineers, analysts, office staff | **KWS, OAS** | Support creation and sharing of knowledge | CAD, word processing, email, scheduling |
| Management (middle) | Department heads | **MIS** | Structured/semi-structured, periodic | Monthly sales report, inventory status |
| Management (middle) | Department heads | **DSS** | Semi-structured, analytical, "what-if" | Production planning, pricing model |
| Strategic (top) | CEO, directors | **ESS** | Unstructured, long term | Executive dashboard, market trend analysis |

- **TPS** supplies data to all higher systems.
- **MIS** summarises TPS data into reports.
- **DSS** adds models and analysis tools.
- **ESS** presents highly summarised internal and external information.

Information detail decreases and its scope and time horizon increase as we move from operational to strategic level.

## Check yourself

The answer's key points as multiple-choice questions, with the correct option and why.

1. Which system mainly serves the operational level?
   A. ESS
   B. TPS
   C. DSS
   D. MIS
   Answer: B. TPS handles structured, routine daily transactions for clerks and supervisors. (Key point: Operational level)

2. Both MIS and DSS serve which level, and what differs?
   A. Middle management; MIS is periodic structured reports while DSS is analytical what-if
   B. Top management; MIS is unstructured while DSS is routine
   C. Operational level; both only process transactions
   D. Middle management; both give only fixed reports
   Answer: A. Both serve department heads, but DSS adds models for semi-structured decisions. (Key point: MIS vs DSS level)

3. What kind of decisions does ESS support?
   A. Routine daily decisions
   B. Clerical document editing
   C. Unstructured, long-term decisions by CEO and directors
   D. Payroll processing
   Answer: C. ESS gives top executives highly summarised internal and external information. (Key point: ESS nature)

4. Moving from operational to strategic level, what happens to information?
   A. Detail increases and time horizon decreases
   B. Detail and scope both increase
   C. Nothing changes
   D. Detail decreases while scope and time horizon increase
   Answer: D. Strategic information is more summarised, broader and longer-term. (Key point: Trend across levels)

## Related in Information System

- [Enterprise management system and benefits](https://www.bctengineer.com/question.md?key=semester_8%2Finformation_system%3Aems-with-example-benefits) — Information System, chapter 3
- [Strategic information system and benefits](https://www.bctengineer.com/question.md?key=semester_8%2Finformation_system%3Astrategic-is-benefits) — Information System, chapter 1, asked 2×
- [Geographic Information System](https://www.bctengineer.com/question.md?key=semester_8%2Finformation_system%3Agis-characteristics-uses) — Information System, chapter 1
- [Short note: HR information system](https://www.bctengineer.com/question.md?key=semester_8%2Finformation_system%3Ashort-note-hris) — Information System, chapter 6
- [Information retrieval in cloud](https://www.bctengineer.com/question.md?key=semester_8%2Finformation_system%3Air-importance-in-cloud) — Information System, chapter 7
- [Importance of change management](https://www.bctengineer.com/question.md?key=semester_8%2Finformation_system%3Achange-management-importance-tactics) — Information System, chapter 6, asked 2×

## Related in other subjects

- [Project management information system](https://www.bctengineer.com/question.md?key=semester_7%2Fict_project_management%3Apmis) — ICT Project Management, chapter 7
- [Information support for functional areas](https://www.bctengineer.com/question.md?key=semester_7%2Forganization_and_management%3Ainformation-support-functional-areas) — Organization and Management, chapter 9, asked 5×
- [Types of information systems; decision support](https://www.bctengineer.com/question.md?key=semester_7%2Forganization_and_management%3Amis-types-decision-making) — Organization and Management, chapter 9
- [Material classification, EOQ, GiT and re-order level](https://www.bctengineer.com/question.md?key=semester_8%2Fconstruction_management%3Aclassification-eoq-gitt-2079) — Construction Management, chapter 3