Managing Communication,

Communication
Knowledge and Information

Information and Knowledge needs

Chapter 7 – Lecturer U Aung Thet Lwin

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Photos copyright of their respective authors
Objectives
1 6 7

Business date,
Increase personal Forming business
information and
networking relationships
knowledge

2 5

Information and Types of information

Decision Making
Knowledge needs system

3 4

Types of information Sources of data and

and knowledge information
Objectives
1. Understand how to assess information and knowledge needs
2. Di
Discuss the
th range off decisions
d i i t be
to b taken
t k
3. Examine the information and knowledge needed to ensure effective
d i i ttaking
decision ki
4. Justify recommendations for improvement
5. Id tif stakeholders
Identify t k h ld f a decision-making
for d i i ki process
6. Make contact with those identified and develop business
relationships
l ti hi
7. Involve those identified in decision making as appropriate
8. D i strategies
Design t t i for
f improvement
i t
1. Business Data, Information and
Knowledge
1.1 Data and Information

Data

• Data is the complete range of raw facts and measurements

• e.g., letters, numbers, symbols, sounds and/or images,
relating to events in the organization or its environment.
• Data is collected and then processed into information

Information

• Information is data that has been processed

• ie, organized and arranged into a form that people can
understand and use
1.2 Knowledge

Definitions

• Knowledge is information within people’s minds

• Knowledge management describes the process of
collecting, storing and using the knowledge held within an
organization
• Knowledge Work System (KWS) are information systems
that facilitate the creation and integration of new knowledge
g
into an organization
• Knowledge Workers are people whose jobs consist
primarily of creating new information and knowledge. They
are often members of a profession such as doctor
doctor,
engineers, authors, lawyers and scientists.
` Knowledge is based on the meaningfully organized accumulating of
information (messages) through experience,
experience communication or
inference

` General Knowledge: it is broad,

broad often publicly available
available, and
independent of particular events

` Specific Knowledge: it is context-specific.

context specific

` Knowledge can be viewed as:

` An object (things) to be stored and manipulated

` A process of simultaneously knowing and acting (expertise)

1.3 Range of purposes

Organization require information for a range of purposes

ƒ Planning
ƒ I f
Information
ti iis required
i d th
thatt h
helps
l d decision-making
i i ki and
dhhow tto iimplement
l tddecisions
i i
taken.

ƒ Monitoring
g and Controlling
g
ƒ Information is required to assess whether activities are proceeding as planned or
whether there is some unexpected deviation from plan

ƒ Recording Transactions
ƒ Information about each transaction or event is required

ƒ Performance Measurement
ƒ Comparisons against budget

ƒ Decision-making
2. Decision Making
2.1 Decisions

` A decision is a choice whereby a person forms a conclusion about a

situation

` Planning leads to decisions guided by company policy and objectives

and implies
p the selection from alternative objectives,
j ,ppolicies,,
procedures and programs

` Th purpose off decision-making

The d i i ki iis tto di
directt h
human b
behavior
h i ttowards
d
a future goal.
2.2 Types of decisions

` Organizational decisions (Made in the role of an official of the company and

reflect company policy)

` Personal decisions (Made by a manager as an individual and cannot be

delegated)

` Basic decisions (e.g. the location of factory in a development area)

` Routing decisions (repetitively and need little thought)

` Structured (they are programmed – reordering, stock)

` Unstructured ((complex
p p
problems with no clear solutions – new
product)

` Semi –structured
structured (some standard procedures are applied, but also
some individual judgment – production scheduling)
` Programmed Decisions
` Routine and repetitive
` E.g., re-ordering stock,
` Risk is not high
` More easily delegated

` Unprogrammed decisions
` Requires
q management
g jjudgment
g
` New and non-repetitive
` Risk is high
` Cannot easilyy be assessed in numerical terms
2.3 Management decision making

A
A. Strategic Planning

` Deciding on objectives of the organization

` Deciding on changes in these objectives,

` Deciding on the resources used to attain these objectives

` Deciding on the policies that are to govern the acquisition, use and disposition of these
resources.
resources

` Strategic Decision Making

` Is medium- to long
g term

` Involves high levels of uncertainty and risk

` Involves situations that may not recur

` Deals with complex issues

2.3 Management decision making

B. Tactical Planning/control (management control)

A. Ensuring that resources are obtained and used effectively and efficiently

B. Routine, contain few alternatives, and relate to the economic use of

resources

C. Operational control

A. Ensures that specific tasks are carried out effectively and efficiently

B. Focus on individual tasks carried out within the strictly defined guidelines

C.
C Decide
ec de what
at needs
eeds to be do
done
e from
o day to day a
and
d tas
task to tas
task
Decision level Structured Semi-structured Unstructured

Operational Stock control Selection of new Hiring supervisor

procedure supplier

T ti l
Tactical Selection
S l ti off All
Allocation
ti off b
budget
d t Expanding
E di iinto
t a
products to discount new design

Strategic Major investment Entry to new market; Reorganization of

decisions new product line whole company
2.4 Decision making and decision taking

` Decision Makers: are those who have interest (active or passive) in

a particular decision
decision.

` Decision Takers: are those charged with reaching decisions and

making specific commitments

` D i i Making:
Decision M ki th f
therefore comprises
i th
the whole
h l process ((problem
bl

identification, analysis, discussion, negotiation) that involves decision

makers up to the point at which the issue is decided

` Stakeholder analysis: is an essential part of the overall decision-
making process.
` Satisfying stakeholders is a complicated task that begins with
including their involvement in the process.

Develop a preliminary list of Reassess the interests and

stakeholders characteristics of stakeholders

Develop an understanding of the Identify relationships between

issues and interests stakeholders

Propose options for decision

Identify additional stakeholders
making strategies
` Stakeholder involvement

` A robust communication and stakeholder involvement program

includes:
` Communication with them

` Engaging them before making final decisions on significant changes

` Able to determine stakeholder response

p and incorporate
p their considerations
into planning

` Feedback is considered when making decisions and stakeholders are told

how the input was used

` If they think that their suggestions are ignored or dismissed, the process can
be undermined and future communications can be unproductive

` Stakeholder involvement is most effective when it encourages them

to describe their underlying concerns and issues
2.5 Strategies for improvement

` Problem solving and decision making will improve effectiveness

and productivity of the organization

` They include 4 phases:

1. Input
p p phase – identify
y the p
problem and understand the situation

2. Processing phase – alternatives are generated, evaluated, selected

3. Output phase – implementation the solution

4. Review phase – solution is evaluated, modification made

5 Step process for decision making

` Step 1 identify the issue – outline the objectives

` Step 2 Determine the alternatives – creative alternative

` Step 3 Evaluate available alternative – choose the best

` Step 3 implement the decision – take action

` Step 4 Follow up the feedback – review the outcome

3. The Types of Information and Knowledge
3.1 Types of management information required

1. What are his resources?

2. At what rate are his resources being consumed?

3
3. How well are the resources being used?
3.2 Levels of Information

I f
Information
ti within
ithi an organization
i ti can b
be analyzed
l d iinto
t 3 llevels
l

A. Strategic Information (for strategic planning)

A. Directors and senior managers to plan the organization’s overall objectives and
strategy and Measure whether these are being achieved

B
B. The characteristics are:

A. Derived from internal and external sources

B. Summarized at a high level

C. Relevant to the long-term

D. Deals with whole organization

E. Often prepared on an ad hoc basis

B. Tactical Information (for management control)

B. Managers at all level, mainly the middle level for tactical planning and
management control

C. M
Managers require
i iinformation
f ti and
d iinstructions
t ti ffrom th
the strategic
t t i level
l l and
d
information from operational level

D
D. Information prepare regularly

E. Information will be in a summarized form but detail enough

C. Operational Information (for operational control)

B
B. Use b
by “front
“front-line”
line” managers – foreman,
foreman head clerks

C. To ensure that specific tasks are planned and carried out properly within a factory
or office

D. Operational information relates to the level of decision making called “operational

control”

E. Characteristics

B. Derived entirely from internal sources

C. Highly detailed

D. Relates to immediate/short-term

E. Take –specific
specific

F. Prepared frequently, routinely

3.3 Information in different sectors

O
Organization
i ti can be
b divided
di id d into
i t 4 sectors
t

1. Manufacturing – need to make and monitor profit

1. Strategic level: future demand estimates, new product development

2. Tactical level: information on variance analysis and stock turnover

3. Operational level: material and labor used and stock levels

2. Service – increase customer and results

1. Strategic level: forecast sales growth, profitability and market share

2. Tactical level: resource use and customer satisfaction rating

3. Operational level: customer waiting time and individual customer feedback

3. Public sector – information requirements depend on objectives
chosen
1. St t i level:
Strategic l l population
l ti d demographics
hi and
d expected
t d govt.
t policy
li

2. Tactical level: average class sizes and per cent of reported crime
solved

3. Operational level: staff timesheets and student daily attendance records

4. Not for profit/charities – performance is usually assessed in

terms of economy, efficiency and effectiveness
3. Strategic level: activities of other charities and public attitudes

4. Tactical level: percentage of revenue spent on admin and average

donation

5
5. Operational level: donations banking documentation and households
donations,
approached and collected from
3.4 Past, present and future information

` Past information

` Record keeping. Historical information will be used again at some time in the
future. Past information is information of a transaction processing nature

` Present information

` Information about what is happening now. Decision can be taken about what
to do next. Present information is associated with control information, which is
the feedback in a management information system

` Future information

` This is forecasting information about what is expected to happen in the future.

It is associated with planning decisions, possibly for a budget, but also for
l
long tterm strategic
t t i information.
i f ti Also
Al iinclude
l d environmental
i t l iinformation.
f ti
3.5 Quantitative and qualitative information

` Quantitative

` Information consists of measurable information – hard facts, numbers,

weights and measures, percentages, statistics, estimates, specifications

` This type of information focus on number of frequencies rather than

meaning
i and
d experience
i

` Survey, laboratory experiments, questionnaires, psychometric tests,

consulting and analyzing records

` Easy to analyze statistically

` Qualitative

` I f
Information
ti iis diffi
difficult
lt to
t measure quantitative
tit ti terms
t

` Consists of facts about opinions, preferences and perceptions

` E.g., employee morale, motivation, customer loyalty, goodwill or attitude

` Methods are: case study research, participant observation, interviews and

questionnaires analyzing documents and text produce by others and
questionnaires,
information gatherer’s own impressions and reactions.

` Quantitative information is preferred to qualitative information because it can

be built into mathematical models and formula

` Qualitative information depends on the experience and judgment of a

manager
` To assist management decision making, provide a quantitative
evaluation of qualitative phenomena

` Accountant may try to evaluate:

` Goodwill for the purpose of agreeing the sale price of a business

` The cost of poor employee morale, in terms of labor turnover (and the cost of
t i i
training, etc,
t or llow productivity)
d ti it )

` The cost or poor motivation, in terms of lost output and profits

` Creating quantitative information in measuring qualitative information:

` Uncertainty – sensitivity analysis, probability distributions or a margin of safety

` Attitudes – scale of 0-6, 0 represents poor and 6 high morale

3.6 Knowledge

Different kind of knowledge:

1. Know How: the ability to do something

2. Know What: knowledge about facts

3
3. Know Why: knowledge about principle and laws

4. Know Who: knowledge about who knows what

Other distinctions are between tacit and explicit knowledge, generic

and specific knowledge, individual (or personal) knowledge and
collective knowledge
 ` A useful way of labeling combinations of such knowledge is done as
follows:

Individual Collective

Explicit Embrained knowledge Encoded knowledge

Tacit Embodied knowledge Embedded knowledge

` Embrained knowledge: can be obtained through formal education and training in

other words, “learning-by-studying”
` Embodied knowledge: is based on hands
hands-on-experience
on experience and “learning
learning-by-doing
by doing”
` Encoded knowledge: is knowledge that is codified and stored in blueprints, recipes,
written rules and procedures. It is collective-explicit
` Embedded knowledge: is the collective form of tacit knowledge residing in
organizational routines, practices, policies, values and the shared beliefs
3.7 Tacit and explicit knowledge

` Tacit

` Formal and standardized , can e easily shared and communicated

` How to drive a car, you can explain it to someone else

` Explicit

` Personal and rooted in a specific context

` Once you learn how to drive a car and have been doing it for some time,
you develop certain techniques (and bad habits) and driving becomes
second nature.
3.8 Knowledge, opinion and policy

Most organizations would admit to having two types of knowledge

shared:

A. Book Knowledge:

A. Facts, general regulations, statutes, or published works

B. Practical Knowledge:

A
A. Personal Opinion – individual opinion

B. Personal Suggestion – personal recommendation

C. I tit ti
Institutional/Organizational
l/O i ti l policy
li – Institutional
I tit ti l practices
ti
3.9 Knowledge sharing

The 2 main motivating factors that encourage knowledge sharing are

1. the desire to improve the profession/department/organization

2. reciprocity (behavior of give each other help and advantages)

1
1. Most people would admit that they felt obligated to help others by sharing
what they know because they had received help at some point in the past
from other members of the group.
4. The Sources of Data and Information
4.1 Internal and external data

1. Internal Information

1. Necessary for all management levels, in every function

2. Relate to activities or transactions preformed within the organization

3. Internal data collected will be quantitative

Internal Sources:

1. The accounting ledgers:

2. Personnel and payroll systems

3. Production departments

4. Marketing departments
 Gathering data/information from inside the organizaton:

1. E t bli hi a system
Establishing t ffor collecting
ll ti or measuring
i d data
t

2. Procedures for what data is collected, how frequently, by whom and by what
method and how it is processed and filed and communicated
method, communicated.

3. Relying on the informal communication lines between managers and staff

2. External Information

1. Official and unofficial sources and assessed for reliability

2. Concerns such matters as official areas – tax, regulations, etc

3. There are wide range of sources: government, consultants, newspapers,

magazines, internet, etc
4.2 Formal and Informal information

` Obtaining information from outside of the organization may be formal

or informal

` Formal sources: statements from the organization’s officials,

published documents, company advertising,

` Informal sources: rumors, meeting with suppliers or customers

` Informal gathering: goes on consciously or unconsciously

` Formal gathering: may be entrusted to particular individuals within

th organization
the i ti
4.3 Primary and secondary data

` Primary Date

` Data that is used solely for the purpose for which it was collected is termed
primary data, this involves carrying out an inquiry or survey

` Secondary Data

` Data is taken from some other source.

` Information collected for one purpose and used again for another purpose
would no longer be primary data.

` Internal sources of secondary information

` External sources of secondary information

4.4 Official and unofficial secondary sources

` Official secondary data

` All information collected, processed and made available by legally constituted
organizations.

` Unofficial secondary data

` Private research results

` Research reports, research papers, textbooks

` Opinion polls

` Market research

` Online databases

` Anecdote/hearsay
4.5 Customers and other stakeholders

The most valuable knowledge that an organization has is in the heads

of its people, and those of its stakeholders, especially customers.

1. Converting it to a more explicit form – in documents, processes,

databases etc.

2. Enhancing tacit knowledge flow through better human

interaction, such that the knowledge is diffused around the
organization and not held in the heads of a few
5. Types of Information System
5.1 Transaction Processing Systems (TPS)

` Also called Data Processing Systems is the lowest level in an

organization’s use of information system

` Serving the operational level and supporting highly structured decisions

` Use for routine tasks in which data items or transactions must be

processed

` Sales order, purchase orders, payroll, stock records

` Provide raw material for management information system, decision

support
pp systems
y

` The main purpose of TPS is as integral part of day-to-day operations

5.2 Knowledge work systems (KWS)

` Creating new knowledge or information by research, experimentation

and investigation into existing trends and products

Areas of knowledge work Examples

Knowledge distribution Office automation systems (OAS)
Knowledge sharing Group collaboration systems –
Groupware, intranets and extranets
Knowledge creation Knowledge work systems
•Computer-aided
C t id d design
d i (CAD)
•Virtual reality
Knowledge capture and codification Artificial intelligence systems Expert
systems
5.3 Management Information System ( MIS)

` MIS converts data from internal and external sources into information,
and communicates that information in an appropriate form to managers
to all levels.
levels

` This enables to make timely and effective decisions for planning,

g and controlling.
directing g

` MIS provide following information:

` Product information

` Sales ledger

` Marketing

` Suppler information

` Accounting

` Modeling
` MIS enables management to incorporate unpredictable, informal or
unstructured information into decision-making
decision making process

` Operational level MIS

` Small scale,
scale programmed
programmed, highly formal and quantitative

` Most MIS used at this level for processing transactions, updating files, etc

` Tactical level MIS

` MIS at this level interact with the same systems as that at operational level, and
tactical information may be generated in the same processing operation as
operational level information

` Functional MIS at tactical level are typically related to other functional MIS

` St t i level
Strategic l l MIS
` IS is informal. Much of the information might come from environmental sources

` Provide summary level data from transactions processing

` Human judgment is used and it cannot be programmed

5.4 Decision Support Systems

` DSS is used by management in making decisions

` Decisions on issues that are unstructured, high level of uncertainty

` DSS are intended to provide a wide range of alternative information

gathering
g g and analytical
y tools with a major
j emphasis
p upon
p flexibility
y
and user-friendliness

` DSS include a range of systems,

systems from fairly simple information
models based on spreadsheets to expert systems

` DSS d
do nott make
k ddecisions
i i
5.5 Executive Information System (EIS)

` Also called Executive Support Systems (ESS)

` IS for senior managers: give easy access to key internal and external data

` F t
Features:

` Summary level data

` Facility to drill down from summaries to supporting detail

` Data manipulation facilities (comparison, trend analysis, etc)

` User friendly

` A template system

` EIS summarizes information from MIS and DSS and includes data from
external sources e.g. competitors, legislation

` EIS is not only a tool for analysis, but also a tool for interrogating data
5.6 Expert Systems (ES)

` Allow users to benefit from expert knowledge

` ES holds specialized data : legal, engineering, medical, tax

` E.g.,

` A user without a legal background can obtain guidance on the law

without having to consult a solicitor
6. Increase Personal Networking
6.1 Personal Networking (PN)

` PN begins with family and friends, co-workers and people

` Through these connection, trustworthy relationships are developed

` Networking is based on good will between people.

` Networking is one of the most beneficial ways for people to help

each other develop their ideas and professional career.

` Increase opportunity for people to talk and share ideas, information

and resources and can serve to enhance both the personal and
professional
f i l aspects
t off one’s
’ lif
life.
6.2 Stakeholders and Useful Contacts

` Networking means staying in touch with organizations and key

individuals who can affect your work or help you to achieve your
goals

` Networking is about connection: ways to get people to send your

business, based on word of mouth or direct introduction
6.3 Internal and External contacts

` Networking includes interaction with outsiders and socializing inside

and outside the organization

` Communication activities include exchanging information and

handling paperwork

` Traditional management activities consist of planning, decision

making and controlling

` And human resource management includes motivating/reinforcing,

disciplining/punishing,
p gp g, managing
g g conflict,, staffing
g and
training/developing
6.4 Direct or via Email
6.5 Formal and Informal networking prospects
6.6 Relating and interacting trust and confidentiality
7. Forming Business Relationships
7.1 Stakeholder contacts
7.2 Relationships with customers
7.3 Supplier relationships
Are There Any Questions?