ACCA Performance Management (F5) Certification Practice Exam

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In which context are Executive Information Systems (EIS) primarily utilized?

  1. By operational managers for daily task management

  2. By senior management to assess strategic performance

  3. By middle management for tactical implementation

  4. By IT staff for system maintenance

The correct answer is: By senior management to assess strategic performance

Executive Information Systems (EIS) are designed specifically to support senior management in monitoring and assessing the strategic performance of an organization. These systems provide high-level data and insights that are crucial for decision-making at the strategic level, allowing executives to analyze trends, track key performance indicators, and evaluate the overall health of the organization. The focus on strategic decision-making distinguishes EIS from other types of information systems used by different levels of management. Operational managers typically use systems geared toward daily task management, which are more tactical in nature. Middle management relies on systems that enable them to implement strategies effectively through day-to-day operations. Meanwhile, IT staff engage with systems primarily for maintenance and technical support rather than for decision-making purposes. In summary, the primary utility of Executive Information Systems lies in their ability to help senior management make informed decisions that align with long-term strategies and objectives, thereby highlighting the importance of strategic oversight within organizations.