The systems model of management demonstrates that communication is what is needed for executing managerial functions and for integrating the organization with the outside world. Point of sale hardware exactly performs this function with the help of Management Information System (MIS).

MIS can be defined as a formal system of gathering, integrating, comparing, analyzing and dispersing information internal and external to the enterprise in a timely, effective and efficient manner. MIS has to be tailored to specific needs and may include routine information, such as monthly reports, information that points out exceptions, especially at critical points and information necessary to predict the future.

Electronic equipment allows speedy and inexpensive crunching of gigantic quantities of data. The computer can, with proper programming, process data toward logical conclusions, classify them and make them readily available for a manager’s use. In fact, data do not become information until they are processed into a usable form that informs.

Information needs differ at various organizational levels. Therefore, the impact of point of sale hardware will also be different. At the supervisory level activities are usually highly programmable and repetitive. Consequently, the use of hardware is widespread at this level. Scheduling, daily planning and controlling of the operation are just a few examples.

Middle level managers, such as department heads are usually responsible for administration and coordination. But much of the information important to them is now also available to top management if the company has a comprehensive information system. For this reason, some people think that the computer will reduce the need for middle level managers. Others predict that their roles may be expanded and changed.

Top level managers are responsible for the strategy and overall policy of the organization. In addition to determining the general direction of the company, they have to do whole lot of other things. Hence, it is not easily programmable. Yet they can use the point of sale hardware to retrieve information from a database that facilitates the application of decision models.