Question 1
1. Regardless of the organisation, the database’s predominant role is to support managerial
decision making at all levels in the organisation while preserving data privacy and security.
1.1. Describe each of the three levels of management that usually exist in an organisation.
Top-level management
Top-level management is responsible for making strategic decisions within the organization. This
level involves high-level planning, policy creation, and setting long-term goals. To support these
activities, the database must provide access to both internal and external data, helping identify
growth opportunities and determine the organization's future direction. It also helps in formulating
and enforcing organizational policies that align with business rules at lower levels. The database aids
in monitoring the achievement of strategic goals, ultimately aiming to improve returns on investment
by enhancing cost management and productivity.
Middle management
Middle management is focused on making tactical decisions and translating the organization’s
strategic goals into specific plans and actions. The database plays a crucial role here by supplying the
data needed to monitor and allocate resources, assess departmental performance, and guide
day-to-day operations. Additionally, it ensures the security and privacy of organizational data,
offering a structured way to manage and control information flow between various departments.
Operational management
Operational management is responsible for making day-to-day decisions that ensure the smooth
functioning of the organization. At this level, the database needs to be highly adaptable to support
ongoing operations. It must be capable of handling large volumes of transactions quickly and
efficiently while maintaining performance standards. The database also helps improve short-term
operations by providing real-time data for tasks such as customer support and application
development. Its ability to handle frequent, high-volume transactions is key to supporting daily
business activities and maintaining operational efficiency.
1.2. What kind of decision support does a database management system (DBMS) give to the first
level YOU mentioned? NB: Name the level first and then provide the answer in each case.
Top-level management
For Top-level management, a database management system (DBMS) provides decision support by:
Supplying the necessary information for strategic decision-making, including strategic
planning, policy formulation, and goal setting.
Offering access to both external and internal data, enabling management to identify growth
opportunities and determine the direction of the organization’s growth, whether as a service
provider, manufacturer, or a combination of both.
Supporting the creation and enforcement of organizational policies, which are then translated
into business rules at lower levels.
Enhancing the potential for a positive return on investment by helping to find ways to reduce
costs and increase productivity within the organization.
Providing feedback to track the achievement of the organization’s strategic goals and adjust as
necessary.