Final answer:
The student's question is about the impact of information systems on management's decision-making capabilities which enhance a firm's performance and attract external investment. It explores management functions and organizational structure, touching on leadership theories and investor relations.
Step-by-step explanation:
The student's question refers to the role of information systems in supporting decision making which leads to better management outcomes such as increased profitability and return on investment. This concept is closely associated with the field of business and management, with a focus on the study of Management and Organizational Structure. In the context of a firm, production and other business operations entail crucial decisions that influence the firm’s behavior, strategy, and success. Notably, the concept described by the student involves the formal functions of management: planning, organizing, coordinating, deciding, and controlling.
Furthermore, the discussion encompasses aspects of leadership behavior, with references to Douglas McGregor's Theory X and Theory Y, which explain different managerial assumptions and techniques. Moreover, information availability also influences investor behavior as well-established firms are likely to attract outside investors such as bondholders and shareholders even if they do not have a personal understanding of the managers and their business plans.