What are the content of the information and the source of the information required for effective decision making?
Different management techniques and styles determine how information is collected, interpreted, and disseminated. The reality that underscores all of these methods is that there is an absolute need for information in generating effective decision making. The content of this information could be raw data like statistics and numeric figures, testimonial narratives from others, as well as projections as to what outcomes certain decisions could lead. Managers have an array of options in terms of acquiring and interpreting information. The reality is that all decisions have to have some level of information and the primacy placed on these sources help to guide decision making principles and outcomes for a particular company.
Content of information required for decision making will depend very much on the decision to be taken, and the source of the information will depend on the content. If you want to take decision on the place to travel during your next information, you will look for information on places for holidaying, and perhaps you will consult travel agents and tourism guide books for information. You may also speak to your friends who have visited some of the places that interest you. However, if you need to decide the subjects you need to choose for your further studies, the type of information and their sources will be quite different.
However, for the purpose of understanding the nature of information used in business for the nature of information and their source can be classified according to different criteria. For example, some authors describe the nature of information for different levels of management like operational management and strategic management. Similarly information may be classified according to management function such as planning, monitoring and controlling. Yet another way of classifying information is by business functions like marketing, manufacturing, design, finance, and HRM. Finally information may be classifies according to the subject matter like, design competition, demographic, weather, economic environment, and so on.
Similarly sources of information may be classified in different ways. Perhaps the most broad system of such classification is to classify the sources as internal sources. The internal source refers to the information that is generated within an organization, while external information need to be collected from other organization and environment. Then information sources are frequently classified as primary and secondary sources. This classification is most commonly used in business research. Primary sources refers to the information collected by direct observation, or field research, while secondary information refers to information collected in the past and available through mediums like publications and past records. Another way of classifying sources of information, is according to the direction of flow of information within the organizational hierarchy of the company. Thus information flow can be fro up to down, down to up, or sideways.
Information in management and information management are different concepts, information in management referring to the nature of information (data content), information management referring to using / processing information.
Information management is the process by which information previously collected is analyzed and then used by managers to make decisions.
Information in management is necessary information for management decisions.
Monitoring provides information on the project. Data are collected in the planning and implementation phases. They help to detect any problems. Thus there could be found management solutions to resolve them.
Importance of Information on Managenment
Information in Management is important to:
- Decisions making, in order to improve the organization of services and facilities,
- Making planning, implementing, monitoring and participatory evaluating.
To be used in managerial decision making, information has to be processed (collected, stored and analyzed). Information management (collection and storage information process ) and information in management (information necessary for decision making) are different notions, however they are complementary and can not be separated in day by day businesses.
Thus, information in management involves:
- determine what information is necessary;
- collect and analyze it;
- storing and retrieving it when necessary;
- their use;
- their dissemination.