Understanding Information Types for Effective Decision-Making in Administration

1. Higher AdministrationITFM Outcome 1 Information & Decision Making

2. The nature of information • Data – raw facts and figures which have been collected and organised but have not been processed. • Information – data which has been processed into a form which assists the person who received the information to arrive at a decision.

3. Types of information: • Quantitative information is: • easily counted or measured • factual and often in number format • eg sales figures, salary costs, production rates, number of people employed, etc

4. Types of information: • Qualitative • descriptive information • opinions, attitudes and value judgements • eg rating the service as good, satisfactory or unsatisfactory

5. Types of information: • Primary • information gathered first hand • for a specific purpose • new information • can be collected through observation, opinion polls, interviews, telephone surveys, questionnaires, etc.

6. Types of information: • Secondary • information which already exists • gathered for one purpose in the past but available for other users • organisations should check whether secondary information is already available before arranging for the collection of primary information • egs government statistics, the Internet, teletext, trade journals, consumer surveys, etc

7. Types of information: • External • information obtained from out with the organisation • eg government reports, trade journals, newspaper articles, CD-ROMs, the Internet, etc

8. Types of information: • Internal • information gathered from the organisation’s own internal records. • concerned with what is happening within the organisation • eg sales figures, salary information, production rates, etc

9. Information and Communications Technology (ICT) • Collecting, processing and transmitting information by electronic means.

10. Collecting/Transmitting • Email • The Internet • Fax • Mobile phone • Voicemail • Telephone • Telephone answering machine • Electronic diary

11. Processing • Using software packages such as: • Word processing • Spreadsheets • Databases • Desktop publishing (DTP) • etc

12. Increased use of ICT - Advantages • Increases in: • Volume, speed and ease which info can be accessed, processed and transmitted • Employees’ productivity • Quality of output of info (accuracy and appearance) • Employees’ motivation (repetition reduced) • Opportunities to standardise the collection, processing and transmission of info • Flexibility in the use of equipment

13. Sources of Information - Electronic • Information held in electronic form: • on computer files (databases, wp docs, etc) • on CD-ROM • the Internet • viewdata • teletext

14. Sources of Information – Paper-based • Information in printed form – the information may be internal or external to the organisation: • Phone Book/Yellow Pages • Dictionaries/encyclopaedias, gazetteers • Road maps • AA/RAC handbooks • Whitaker’s Almanac • Postal leaflets, etc

15. Sources of Information - Oral • Information is passed on by word of mouth. • In order for this to be of value as a reliable source of information al full and accurate record should be kept of what was said: • Meetings • Interviews • Visits • Telephone/Mobile calls • Videophone/Videoconferencing • etc

16. Sources of Information - Internal • Information which is obtained from organisation’s own internal records. • The value will depend on the accuracy, relevance and quality of the information. • Personnel records • Payroll records • Company handbooks • Minutes of meetings • Stock records, etc

17. Sources of Information - External • Information which is obtained from outwith the organisation. • May be required when comparing the organisation’s performance against other similar businesses. • Government reports/publications • Internet • Newspaper articles • Reference books, etc

18. Sources of Information • See pages 80-84 of your notes for more detailed descriptions of many different examples of sources of information. • The basic requirement of information is that it must be meaningful and useful to its user.

19. Features of Good Information • Accurate • Having inaccurate information may be worse than having no information at all. • Users of information must be certain that the information does not contain errors (it must provide a sound basis upon which to make decisions)

20. Features of Good Information • Up-to-date • The latest information should be available • For example: on recent sales trends and stock levels when determining production targets for the next year.

21. Features of Good Information • Relevant • The information should be relevant to the area being looked at and the decisions which has to be taken. • Irrelevant information may delay or confuse decision taking

22. Features of Good Information • Sufficient • The information should be: • Comprehensive • Complete • Concise

23. Features of Good Information • Appropriate • The information should be presented in a format which is comprehensible and can be readily used by the people required to make decisions. • The information must not be ambiguous or misleading.

24. Features of Good Information • Available • The information should be available at the time it is required. • If there is a delay in accessing the required information then decisions will be delayed and opportunities may be missed or wrong decisions may be taken.

25. Features of Good Information • Cost effective • The information should not be costly to obtain. • What is acceptable as far as cost is concerned will, of course, depend on the type and level of decision to be taken.

26. Effects of Poor Communication • work is not productive - tasks are not completed on time • important tasks are overlooked • poor quality work is produced which can impact upon customers • individuals may feel demotivated if they are not kept informed • individuals work rate may suffer through no fault of their own and they may face disciplinary action

27. Decisions, decisions “Whatever a manager does, he does through making decisions. …management is always a decision-making process.” The Practice of Management by Peter F Drucker

28. Strategic Decisions • Set the aims and objectives of the organisation. • Concerned with the production of policies which give the organisation its overall direction, purpose and competitive edge. • Not concerned with the detail of how such policies are put into action.

29. Strategic Decisions • Long-term – affecting the organisation over a number of years • High-risk – once taken, difficult and costly to reverse if something goes wrong • Taken by top levels of management (BOD, Chief Executives, Heads of Depts, etc) • Example: whether to take over a rival firm

30. Tactical Decisions • Concerned with putting the strategic decisions into action. • Concerned with bringing together and using the resources of a business to achieve the aims and objectives of the organisation.

31. Tactical Decisions • Medium term – 6 months to one year • Medium-risk – it will take some time to put right if the wrong decision is taken • Taken by middle levels of management (senior staff, factory managers, etc) • Example: whether to introduce new working arrangements in the factory

32. Operational Decisions • Concerned with the detail of tactical decisions. • Day-to-day decisions to ensure standards and targets are met and adjustments are made in line with changing circumstances.

33. Operational decisions • Short-term – a few days to a few months • Taken on a daily basis • Usually low risk – rectified quickly at little cost if the wrong decision taken • Taken by lower levels of management (supervisors, managerial assistants, etc) • Example: when to schedule meetings of staff in the sales department