DISCUSS THE ROLE OF INFORMATION WITHIN AN ORGANIZATION IN FULL DETAILS. For an organization to act, it needs to have information about itself, its customer and supplier, (if any) and environment...


For an organization to act, it needs to have information about itself, its customer and supplier, (if any) and environment that it operates in.

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thetall eNotes educator| Certified Educator

Information plays an important role in an organization because it guides every decision an organization makes or expects to make. Thus, information is important in the decision-making and problem-solving processes, and without the right information, organizations are bound to make mistakes in these key processes.

An organization needs to have information about its Strengths, Weaknesses, Opportunities, and Threats in what is known as a SWOT Analysis. The main idea of a SWOT Analysis is to ensure the organization knows its internal and external position in order to secure and grow its business. The information is also important because it helps the organization devise better strategies for dealing with their competitors.

A customer analysis helps the organization understand the people it serves by getting to know their needs, perceptions, and preferences among other key customer variables. This information then ensures that the organization offers the right products or services that would adequately address the needs of their customers.

The organization also needs to understand their suppliers and their ability to provide the required products or services required for the existence of the organization. This information helps organizations deal accordingly with situations of surplus and shortage.

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Ashley Kannan eNotes educator| Certified Educator

Information is vitally important to the successful functioning of any organization.  The absence of organization can be taken to mean many things that is not intended.  For example, if a vendor does not hear from a supplier, it could be interpreted as rudeness as something not intended.  The absence of organization could also be interpreted as a sense of  disorder and a lack of precision in the way business is conducted.  In contrast, the constant and steady stream of communication and information helps to build credibility, reflect a sense of transparency in business interactions, and can probably do more good than not.  It is important that what is communicated is of vital importance and relevance, but with this in mind, the presence of information and its continuous stream can go very far in the process of instilling confidence within a business and for its external perception.

krishna-agrawala | Student

Information can be considered as the raw material used in producing each and every decision taken in an organization. Organizations need to decide regularly on what objectives to be achieved, what actions to take to achieve theses objectives, how and when these actions are to be taken, and the resources to be used for all these activities. These decisions are taken by all the people in the organization who work at different level of organizational hierarchy and handle different aspect of the organizational work.

The exact decision that in individual takes varies from person to person and from time to time, depending on nature of organizational tasks being performed. Also some people need to do more of decision making as compared to implementing the decisions. But everyone in the organization needs has to takes some decisions for which availability of adequate information is critical.

Information is also required to convey decisions taken to the people responsible for implementing the decisions taken, and for monitoring the actual results achieved as the work progresses. In this way information plays a critical role in working of every organization.