© Copyright 2004 McGraw-Hill. All rights reserved.13–1 Information and the Manager’s Job DataData  Raw, unsummarized, and unanalyzed facts. InformationInformation.

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Presentation transcript:

© Copyright 2004 McGraw-Hill. All rights reserved.13–1 Information and the Manager’s Job DataData  Raw, unsummarized, and unanalyzed facts. InformationInformation  Data that is organized in a meaningful fashion. Why Managers Need Information:Why Managers Need Information:  To make effective decisions.  To control activities of the organization.  To coordinate the activities of the organization.

© Copyright 2004 McGraw-Hill. All rights reserved.13–2 Factors Affecting the Usefulness of Information Figure 13.1

© Copyright 2004 McGraw-Hill. All rights reserved.13–3 Information Systems and Technology

© Copyright 2004 McGraw-Hill. All rights reserved.13–4 Communication, Information, and Management CommunicationCommunication  The sharing of information between two or more individuals or groups to reach a common understanding. Importance of Good CommunicationImportance of Good Communication  Increased efficiency in new technologies and skills.  Improved quality of products and services.  Increased responsiveness to customers.  More innovation through communication.

© Copyright 2004 McGraw-Hill. All rights reserved.13–5 The Communication Process Phases of the Communication Process:Phases of the Communication Process:  Transmission phase: information is shared by two or more people.  Feedback phase: a common understanding is assured. The process starts with a sender (an individual or group) who wants to share information and puts the message into symbols or language (encoding).The process starts with a sender (an individual or group) who wants to share information and puts the message into symbols or language (encoding).  Noise: anything harming the communication process.

© Copyright 2004 McGraw-Hill. All rights reserved.13–6 The Communication Process (cont’d) Messages are transmitted over a medium to a receiver.Messages are transmitted over a medium to a receiver.  Medium: the pathway over which the message is transmitted (e.g., telephone, written note, ).  Receiver: the person getting the message. The receiver decodes (interprets) the message, allowing the receiver to understand the message.The receiver decodes (interprets) the message, allowing the receiver to understand the message. This is a critical point: failure to properly decode the message can lead to a misunderstanding.This is a critical point: failure to properly decode the message can lead to a misunderstanding.  Feedback by receiver informs the sender that the message is understood or that it must be re-sent.

© Copyright 2004 McGraw-Hill. All rights reserved.13–7 Forms of Communication Verbal CommunicationVerbal Communication  The encoding of messages into words, either written or spoken. Nonverbal CommunicationNonverbal Communication  The encoding of messages by means of facial expressions, body language, and styles of dress.  Supports or undercuts the spoken message.

© Copyright 2004 McGraw-Hill. All rights reserved.13–8 Dangers of Ineffective Communication Managers and their subordinates can become effective communicators by:Managers and their subordinates can become effective communicators by:  Selecting an appropriate medium for each message—there is no one “best” medium.  Considering information richness (the amount of information a medium can carry). A medium with high richness can carry much more information to aid understanding.A medium with high richness can carry much more information to aid understanding.  Asking if there is a need for a paper path or electronic trail to provide documentation of the communication.

© Copyright 2004 McGraw-Hill. All rights reserved.13–9 The Information Technology Revolution Information Technology The Tumbling Price of Information Wireless Communications Computer Networks Software Development

© Copyright 2004 McGraw-Hill. All rights reserved.13–10 Types of Information Systems Transaction Processing Systems (TPS)Transaction Processing Systems (TPS)  Systems designed to handle large volumes of routine transactions. Were the first computer-based information systems handling billing, payroll, and supplier payments.Were the first computer-based information systems handling billing, payroll, and supplier payments. Operations Information Systems (OIS)Operations Information Systems (OIS)  Systems that gather, organize, and summarize data in a form of value to managers. Can help managers with non-routine decisions such as customer service and productivity.Can help managers with non-routine decisions such as customer service and productivity.

© Copyright 2004 McGraw-Hill. All rights reserved.13–11 Types of Information Systems (cont’d) Decision Support Systems (DSS)Decision Support Systems (DSS)  Provide interactive models to help middle and upper managers make better decisions. Excellent for unusual, non-programmed decisions.Excellent for unusual, non-programmed decisions. Analyzes investment potential, new product pricing.Analyzes investment potential, new product pricing.  Executive Support System (ESS) Sophisticated version of a DSS matched a top manager’s needs.Sophisticated version of a DSS matched a top manager’s needs.

© Copyright 2004 McGraw-Hill. All rights reserved.13–12 Types of Information Systems (cont’d) Decision Support Systems (DSS) (cont’d)Decision Support Systems (DSS) (cont’d)  Group Decision Support System An executive support system that links top managers so that they can function as a team.An executive support system that links top managers so that they can function as a team. Expert Systems and Artificial IntelligenceExpert Systems and Artificial Intelligence  Employ human knowledge captured in a computer to solve problems usually requiring human insight. Uses artificial intelligence (AI) to recognize, formulate, solve problems, and learn from experience.Uses artificial intelligence (AI) to recognize, formulate, solve problems, and learn from experience.