Chapter 11: Information Management Flashcards
Data:
Data refers to all the raw or unprocessed figures and facts that are collected by the business.
As data are raw unprocessed, they cannot be used to base decisions on. Examples of data could be sales figures, production times, costs etc.
Processing data to turn it into Information:
Information refers to data which has been
processed via a transformation process known as data processing. For example, A business collects sales
figures from its different stores.
Actions:
Once the management have made the necessary
decisions, based on the information that has been
processed, action is taken.
The information management system and decision making:
The information management system will allow management to access information
on its past and present to make well-informed decisions for the future.
Different levels of management:
Lower-Level Management:
At this level use information that details daily activities in the business and will mostly need internal information.
For example: The production supervisor will need to assess the volume of raw materials needed on the production line over the next week. He/she will
communicate this information to the Production manager.
Middle-Level or Functional Management:
Management at this level will be concerned with information which affects the medium-term running of the business. It is important to remember that this level of management will collect information from the lower-level manager and process this information to present it to top management. This level of management will be interested in information from both the internal and external environment.
For example: The Marketing manager will want to collect information from customers to make marketing decisions.
For example: The Production manager will inform the Purchasing manager of
stock to be ordered after he/she has decided how much of each type of product needs to be produced in the next quarter.
Top-Level Management:
This Level of management requires information that gives the top level an overall
Idea of what is happening in the business. Top management will use information to plan for the future of the business, ie. how to steer the business to achieve
its vision and mission.
Top management will be concerned with both internal and external information, such as what is happening in the political, social and economic
(etc.) environments of the business.
Information management system
Quality and Quantity:
It is important that information is accurate. The more accurate the information, the better
the quality of decisions by the different levels of management.
Flexible:
All businesses operate in a competitive and ever-changing global environment. It is important that the information management system can be adapted to provide information
in various formats to help management to make informed decisions.
Reliable:
Management will use the information to make
informed decisions about the short, medium and long-term. Decisions can only be reliable
if the information that it is based on, is reliable This means that the capturing, processing and timing of the information needs to accurate and available at the time when these decisions have to be made.
Simplistic:
The business has to make sure that the processing of data to information is as simple as possible.
Information can be collected, processed and stored in a centralised or decentralised
manner:
-Centralised: means that all information comes to a point where the data is captured
and processed.
-Decentralised: means that information is captured and processed at different points,
namely by each department or geographical area.
Utility:
The information management system has to assist
management by ensuring they are able to make informed decisions, To meet this requirement, the system has to provide meaningful information.
Economical:
The cost of collecting, processing and storing
information, as well as the cost of maintaining the system on an on-going basis, should not exceed the value that the business will obtain from the system.
What is the administrative function responsible for?
The administrative function will be responsible for collecting, capturing and processing data and to store information.
Steps followed by the administrative function:
-Data collection
-Data classification
-Sorting and processing data
-Summary of information
-Storage
-Retrieval
-Communication
