Introduction to Management Information Flashcards
CHAPTER 2
Data definition
A ‘scientific’ term for facts, figures & measurements
Information definition
Data that has been processed in such a way to be meaningful to the person who receives it / Processed data
Anything that is communicated
Is an individual questionnaire a data??
No - It is just a review from one customer, it needs to be processed to be meaningful/produce reports
Management
Term used for the people in charge for running a business (managers)
Management information
Information given to people in charge of running an organisation
Two types of management information
○ Financial
○ Non-financial
Purpose of management information
○ Planning
○ Control
○ Decision making
Planning
Plan resources a business will require and how will be used
Control
Control over business activity - make sure stick to original plan
Decision making
Involves a choice between alternatives - reach an informed decision
3 groups that need to co-operate in reporting information
1) End users - management & supervisors
2) Accounts department - process the information
3) Information technology department - set up & make changes to computer system
Example of management information reports
○ Comparison budgeted &actual
○ Year-to-date
○ Comparison company result & competitor result
○ Comparison current & previous year
○ Product/organisation profitability
○ Value of closing inventories
Internal information
Capturing data/information from inside the organisation
☺System for collecting data
☺ Informal communication - staff ⇄ manager
☺ Communication between staff
Internal data sources
- Receivable ledger
- Payable ledger
- Cash books
- Information about personnel
- Staff
External information
Capturing information from outside the organisation
Routine task / Informal non-routine
