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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

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

recorded are filled without immediate intent of retrieving for decision

For example:
Transactions recorded in a ledger are data which may be used for preparing
profit and loss account and balance sheet.

Relation of data to information

Management Level

Information + Decision Rule = Managerial Decisions

Summarized Data

Operation Level

Information + Decision Rules = Operational Decisions


Information is a valuable organizational resource provided it is useful and is used judiciously.

These resources are tangible and intangible resources are are tied semi-permanently to the

Tangible assets: Land


Intangible assets: Human resource skills


Tests to measure the valuableness of

Scarcity test: Higher the degree of a resource, higher is the degree of its value

Mobility test: Easily transferable resources are less valuable.

Inimitability test: Resources which can be copied easily by others are less valuable than those
resources which can not be copied.

Tests to measure the valuableness of


More durable resources in term of their contribution to the organizational

success re more valuable than those having less durability.

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.

Merely providing information is not sufficient, it is also necessary to provide useful

information that can help in initiating some real action .

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

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

enough to furnish relevant analysis to draw inferences.


Information must be valid for the purpose of its use.

Validity can be measured in the terms of how it can meet the users requirement.

Characteristics of information

Adequate information must be provided so as to initiate the desired action.

Information adequacy can be

Required information should low in different directions within the organization and to and from its

The type of information that flows within the organization or across it should have adequate and
relevant contents.


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

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.

Therefore, there is a need to devise suitable measured to overcome these problems.


The information must be complete as much as possible

It should reflect the true phenomenon of the issue relating to a decision.

However complete information does not means overloading the unnecessary facts and

Characteristics of information

Information must be available in the form in which it suits the recipient.

Information may be communicated in either visual, written, verbal form which is in

accordance to the liking of the recipient and simple in dissemination.


Frequency should be based on the actual requirement of the recipient.

These frequency depends upon the recipients position in an organization and his
interaction with other departments.

Characteristics of information

The rate of transmission of the information must be in accordance with the rate at which the

recipient wants to receive.

Proper rate flow can enable to recipient to properly disseminate the information at right time
for right purpose.

Cost benefit analysis:


Cost of the information is in accordance to the information generation and transmission.

It involves the cost of data

collection and processing of the data into information, channel of

transmission and the medium of recording the information.


It is in the form of the purpose for which it is used.

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:

Strategic management provides overall direction to the enterprise. Strategy formulation

requires examining where the company is now, deciding where it should go, and
determining how to get it there. Strategic assessment involves situation analysis, selfevaluation, and competitor analysis, both internal and external, micro-environmental and

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:

Building a list of local travel agents

Preparing a business incentive scheme

Outlining how they can use the motel website to make reservations and keep up-to-date

Personally visiting the agents to follow up

Monitoring the response to determine if the sales target is met

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

appliances in the motel retrofit.

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

External source of information

Internal source of information

Source of information

Verbal information:

Business espionage:

Soliciting information relating to industry from the concerned associations.


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:

Customers, suppliers, distributors, channel partners

From various publications relating to business operations.

Own research:

Soliciting information from research study which is not available otherwise.

Sources of information
Internal :

Lies within the organization

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

An organization generally collect information on following factors:

Production system related factors

Operation related factors

Research and development related factors

Product related factors

Price related factors

Distribution related factors

Promotion related factors

funds related factors

Employment related factors

Organization related factors and etc.


According to the decision-oriented view, the management mainly comprise of the
following: Planning

Directing and



Strategic planning shifting markets, changing technology, core competitive strength of

the organization.

Tactical planning vendor development, make or buy decisions

Operational planning staff scheduling like attendance, schedules etc.


Strategic planning needs internal and external data or restructuring

Tactical planning changing wage level data of organization as well as competitors

Operational planning related to skills and training equipment's



Strategic planning industry wide data corresponding to technology available

Tactical planning plant wide and supplier wide bottleneck data to reflect deficiencies

Operational planning itemized breakup of the plant and machinery performance, failures


Strategic planning introduction of office automation requires detailed cost benefit analysis

of new technologies

Tactical planning innovating market strategy, detailed marker and production data

Operational planning detailed data pertaining to individual marketing skills



Strategic planning total quality management need detailed performance data and
bench marking

Tactical planning maintaining steady market share in the medium run

Operational planning call for techniques of statistical process control which involves
collection of substantial sampling information during entire production period.

The act of decision making from a business perspective is choosing an option from
a list of alternatives that benefits the business the most.

A decision made in business sometimes comes easily to a manager because it relates

to a situation encountered before; this is a programmed decision.

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.

Programmed Decisions

Programmed decisions are those that a manager has encountered and made in the
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.

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.

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.

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
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.

Fast-food companies also had to make an un-programmed decision regarding

consumer concerns about high fat contents and lack of healthy menu options.