Communication and Information Technology Management Chapter Thirteen Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

Information and the Manager’s Job Data – Raw, unsummarized, and unanalyzed facts. Information – Data that is organized in a meaningful fashion 13-2

Factors Affecting the Usefulness of Information Figure

Attributes of Useful Information 13-4

Information Systems and Technology Management Information System – An information system that managers plan and design to provide themselves with the specific information they need Information Technology – the means by which information is acquired, organized, stored, manipulated, and transmitted 13-5

Information and Decisions Most of management is about making decisions To make effective decisions, managers need information, both from inside and outside the organization 13-6

Communication, Information and Management Communication – The sharing of information between two or more individuals or groups to reach a common understanding. 13-7

Importance of Good Communication Increased efficiency in new technologies and skills Improved quality of products and services Increased responsiveness to customers More innovation through communication 13-8

The Communication Process Transmission phase – information is shared by two or more people Feedback phase – a common understanding is assured 13-9

The Communication Process Figure

The Communication Process Sender – person or group wishing to share information Message – information that a sender wants to share Encoding – translating a message into understandable symbols or language Noise – anything that hampers any stage of the communication process 13-11

The Communication Process Receiver – person or group for which a message is intended Medium – pathway through which an encoded message is transmitted to a receiver Decoding – interpreting and trying to make sense of a message 13-12

Verbal & Nonverbal Communication Verbal Communication – The encoding of messages into words, either written or spoken Nonverbal Communication – The encoding of messages by means of facial expressions, body language, and styles of dress

The Dangers of Ineffective Communication 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 – A medium with high richness can carry much more information to aid understanding

Information Richness – The amount of information that a communication medium can carry and the extent to which the medium enables the sender and receiver to reach a common understanding 13-15

The Information Richness of Communication Media Figure

Communication Media Face-to-Face – Has highest information richness – Can take advantage of verbal and nonverbal signals – Provides for instant feedback 13-17

Face-to-Face Communication Management by Wandering Around – Face-to-face communication technique in which a manager walks around a work area and talks informally with employees about issues and concerns 13-18

Communication Media Spoken Communication Electronically Transmitted – Has the second highest information richness. – Telephone conversations are information rich with tone of voice, sender’s emphasis, and quick feedback, but provide no visual nonverbal cues

Communication Media Personally Addressed Written Communication – Has a lower richness than the verbal forms of communication, but still is directed at a given person. – Excellent media for complex messages requesting follow-up actions by receiver 13-20

Communication Media Impersonal Written Communication – Has the lowest information richness. – Good for messages to many receivers where little or feedback is expected (e.g., newsletters, reports) 13-21

Information Overload – A superabundance of information that increases the likelihood that important information is ignored or overlooked and tangential information receives attention 13-22

Advances in Information Technology The Tumbling Price of Information – The cost of computer hardware has dropped dramatically while the power of computers has risen sharply

The Organizational Hierarchy Traditionally, managers have used the organizational hierarchy as the main system for gathering information necessary to make decisions and coordinate and control activities 13-24

The Organizational Hierarchy Drawbacks Can reduce timeliness of information Reduces quality of information Tall structure can make for an expensive information system 13-25

Four Computer-Based Management Information Systems Figure

The Organizational Hierarchy Information distortion – changes in meaning that occur as information passes through a series of senders and receivers 13-27

Types of Information Systems Transaction Processing Systems (TPS) – Systems designed to handle large volumes of routine transactions. – First computer-based information systems handling billing, payroll, and supplier payments

Types of Information Systems Operations Information Systems (OIS) – Systems that gather, organize, and summarize comprehensive data in a form of value to managers. – Can help managers with non-routine decisions such as customer service and productivity

Types of Information Systems Decision Support Systems (DSS) – An interactive computer-based management information system with model-building capability that managers can use when they must make non- routine decisions 13-30

Types of Information Systems Expert Systems and Artificial Intelligence – Employ human knowledge captured in a computer to solve problems that ordinarily require human expertise. – Uses artificial Intelligence to recognize, formulate, solve problems, and learn from experience