1 Higher Administration ITFM 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 easily counted or measured factual and often in number format factual and often in number format eg sales figures, salary costs, production rates, number of people employed, etc eg sales figures, salary costs, production rates, number of people employed, etc

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

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

6 Types of information:  Secondary information which already exists information which already exists gathered for one purpose in the past but available for other users 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 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 egs government statistics, the Internet, teletext, trade journals, consumer surveys, etc

7 Types of information:  External information obtained from out with the organisation information obtained from out with the organisation eg government reports, trade journals, newspaper articles, CD-ROMs, the Internet, etc 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. information gathered from the organisation’s own internal records. concerned with what is happening within the organisation concerned with what is happening within the organisation eg sales figures, salary information, production rates, etc 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   The Internet  Fax  Mobile phone  Voic  Telephone  Telephone answering machine  Electronic diary

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

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

13 Sources of Information - Electronic  Information held in electronic form: on computer files (databases, wp docs, etc) on computer files (databases, wp docs, etc) on CD-ROM on CD-ROM the Internet the Internet viewdata viewdata teletext 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 Phone Book/Yellow Pages Dictionaries/encyclopaedias, gazetteers Dictionaries/encyclopaedias, gazetteers Road maps Road maps AA/RAC handbooks AA/RAC handbooks Whitaker’s Almanac Whitaker’s Almanac Postal leaflets, etc 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 Meetings Interviews Interviews Visits Visits Telephone/Mobile calls Telephone/Mobile calls Videophone/Videoconferencing Videophone/Videoconferencing etc 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 Personnel records Payroll records Payroll records Company handbooks Company handbooks Minutes of meetings Minutes of meetings Stock records, etc 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 Government reports/publications Internet Internet Newspaper articles Newspaper articles Reference books, etc Reference books, etc

18 Sources of Information  See pages 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. 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) 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 The latest information should be available For example: on recent sales trends and stock levels when determining production targets for the next year. 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. 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 Irrelevant information may delay or confuse decision taking

22 Features of Good Information  Sufficient The information should be: The information should be: ComprehensiveComprehensive CompleteComplete ConciseConcise

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 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. 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. 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. 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. 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. 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