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INTRODUCTION
The term information is imprecise because people use it in different ways,
for the purpose of MIS.
It can be defines as the data that have been processed and used for
information or inference purpose.
David and Olson have defined information as follow:
Information is the data that has been processed into a form that is meaningful
to the recipient and is of real or perceived value or prospective actions or
decisions.
Cont.
Data are raw material to information and may be defined as groups or non
random symbols which represent quantities, actions, objects etc.
Thus data are facts and figures that are not currently being used in a
decision making and usually take the form of the historical records that are
Summarized Data
Operation Level
INFORMATION AS ORGANIZATIONAL
RESOURCE
These resources are tangible and intangible resources are are tied semi-permanently to the
organization.
Inimitability test: Resources which can be copied easily by others are less valuable than those
resources which can not be copied.
Appropriability test: Resources appropriate in context of the organization, that can lead to some
valuable action.
Substitutability test: Resources that can be easily substituted for a valuable resource are valuable as
this feature enable easy updates.
Characteristics of information
1. Timeliness
2. Purpose
3. Reliability
4. Validity
5. Adequacy
6. Redundancy
7. Quality
8. Completeness
9. Format
10. Frequency
11. Rate
12. Cost benefit analysis
Characteristics of information
Timeliness: An information to be used must be available to the recipient at appropriate time i.e. when the
recipient want to initiate some actions that are meant to achieve organizational objectives.
This information can be can be prepared on regular time interval daily, weekly, monthly,
quarterly, fortnightly etc.
Purpose: The information received by the recipient may be to solve a problem, or to get knowledge
about the work status, or similar purpose.
A useful information is one which the receiver may use for the purpose for which he receives
the information.
Characteristics of information
Reliability:
Information must be reliable so as to serve the purpose for which the information has to
be used.
If any sort of tools are used to analyze the data then those tools must also be reliable
Validity:
Validity can be measured in the terms of how it can meet the users requirement.
Characteristics of information
Adequacy:
Required information should low in different directions within the organization and to and from its
environment.
The type of information that flows within the organization or across it should have adequate and
relevant contents.
Redundancy:
There is tendency of data redundancy which means excess of information carried per unit
of data.
For example:- creating multiple copies of the same inventory or writing facts in figures as
well as words
Characteristics of information
Quality:
The quality of the information must be appropriate to the level of organization i.e. it must
be correct and prcised.
Several failure or incorrect data measurement and calculation methods cause loss of data
or inappropriate data.
Completeness:
However complete information does not means overloading the unnecessary facts and
figures
Characteristics of information
Format:
Frequency:
These frequency depends upon the recipients position in an organization and his
interaction with other departments.
Characteristics of information
Rate:
The rate of transmission of the information must be in accordance with the rate at which the
Proper rate flow can enable to recipient to properly disseminate the information at right time
for right purpose.
Cost
Benefit
Information benefit must be more or at least equal to the cost of the information.
Types of information
Strategic information
Tactical information
Operational information
Types of information
Strategic Information:
Objectives are determined by the results of the strategic assessment. These objectives should
run parallel on a timeline, some short-term and others long-term. This involves crafting
vision statements (long-term projections for the future), mission statements (describing the
organization's role in society), overall corporate objectives (both financial and strategic),
strategic business unit objectives (both financial and strategic), and tactical objectives.
These objectives should suggest a strategic plan that provides details (tactics) for achieving
these objectives.
Types of information
Tactical Information:Strategy involves the future vision of the business; tactics involve the actual steps needed to achieve
that vision. For example, a marketing strategy for a motel might be to develop a business package
targeting travel agents that includes an e-commerce solution. Tactics are practical steps for
implementing strategy. Other tactics for the travel-agent strategy might include:
Outlining how they can use the motel website to make reservations and keep up-to-date
One can see from this that strategy always comes first, followed by tactics. For example, a valuebased commitment to environmentally responsible hospitality could be reflected strategically by
working toward green globe certification and tactically by incorporating energy efficient
Types of information
Operational Information:
Operational control regulates the day-to-day output relative to schedules, specifications, and
costs. Are product and service output high-quality and delivered on time? Are inventories of
raw materials, goods-in-process, and finished products being purchased and produced in the
desired quantities? Are the costs associated with the transformation process in line with cost
estimates? Is the information needed in the transformation process available in the right
form and at the right time? Is the energy resource being used efficiently?
Operational control can be a very big job, requiring substantial overhead for management,
data collection, and operational improvement. The idea behind operational control is
streamlining the process to minimize costs and work as quickly and efficiently as possible.
Source of information
Source of information
External:
Verbal information:
Business espionage:
Publications:
Soliciting information from various market research agencies about various aspects of environments
Industry associations:
Soliciting information confidentially from competitive customer, suppliers, employees, financiers etc.
Market research:
Own research:
Sources of information
Internal :
Information can be gathered from different functional areas like Production/operations, Marketing,
Finance, Human resource.
Records from supporting factors like management functions and information systems
Organizing
Coordinating
Directing and
Controlling
Organizing:
Tactical planning plant wide and supplier wide bottleneck data to reflect deficiencies
Operational planning itemized breakup of the plant and machinery performance, failures
Directing:
Strategic planning introduction of office automation requires detailed cost benefit analysis
of new technologies
Tactical planning innovating market strategy, detailed marker and production data
Strategic planning total quality management need detailed performance data and
bench marking
Operational planning call for techniques of statistical process control which involves
collection of substantial sampling information during entire production period.
CLASSIFICATION OF DECISION
MAKING
The act of decision making from a business perspective is choosing an option from
a list of alternatives that benefits the business the most.
When a manager faces uncertainty and there is a higher level of risk involved
regarding a decision, he must make an un-programmed decision using logic.
CLASSIFICATION OF DECISION
MAKING
Programmed Decisions
Programmed decisions are those that a manager has encountered and made in the
past.
The decision the manager made was correct because she used the assistance of
company policies, computations or a set of decision-making guidelines.
In addition to being well structured with predetermined rules regarding the decisionmaking process, programmed decisions may also be repetitive or routine as their
outcome was successful in the past.
It generally does not take a manager as long to come to a conclusion when faced with
a business-related programmed decision because the challenge faced is not new.
As a result, programmed decisions allow a manager to make streamlined and
consistently effective choices.
CLASSIFICATION OF DECISION
MAKING
Examples of Programmed Decisions
Individuals naturally make programmed decisions on a daily basis.
For example, in an emergency, most people automatically decide to call 9-1-1.
From a business perspective, a company may create a standard routine for handling
technical issues, customer service problems or disciplinary matters.
An employees duties may become routine with repetition, like the process a mechanic
uses to troubleshoot problems with a customers car.
CLASSIFICATION OF DECISION
MAKING
Un-programmed Decisions
Un-programmed decisions involve scenarios that are new or novel and for which
there are no proven answers to use as a guide.
In such a case, a manager must make a decision that is unique to the situation and
results in a tailored solution.
Un-programmed decisions generally take longer to make because of all the
variables an individual must weigh; and the fact that the information available is
incomplete, so a manager cannot easily anticipate the outcome of his decision.
CLASSIFICATION OF DECISION
MAKING
Examples of Un-programmed Decisions
An individual may make an un-programmed decision when she visits a new
restaurant, is unfamiliar with the menu and the menu is in a language she does not
understand.
In the business world, the makers of the earliest personal computers had to make
un-programmed decisions regarding the type of marketing to use to attract
customers who possibly had never used a computer in the past.