1. Communication and Information Technology Management
Chapter Thirteen

2. Learning Objectives
LO13-1 Differentiate between data and information, list the attributes of useful information, and describe three reasons why managers must have access to information to perform their tasks and roles effectively LO13-2 Explain why effective communication-the sharing of information-helps an organization gain a competitive advantage and describe the communication process

3. Learning Objectives
LO13-3 Define information richness, and describe the information richness of communication media available to managers
LO13-4 Differentiate among four kinds of management information systems

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

5. Factors Affecting the Usefulness of Information
Figure 13.1

6. Attributes of Useful Information

7. Question?
What type of information system do managers plan and design to provide themselves with the specific information they need?
Decision Support System
Management Information System
Employee Decision Matrix
Management Support System
The correct answer is “B” – Management Information System. See next slide

8. Information Systems and Technology
Information Technology
The set of methods or techniques for acquiring, organizing, storing, manipulating, and transmitting information
Management Information System
A specific form of IT that managers utilize to generate the specific, detailed information they need to perform their roles effectively.

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

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

11. 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

12. The Communication Process
Transmission phase
information is shared by two or more people
Feedback phase
a common understanding is assured

13. The Communication Process
Figure 13.2

14. Discussion Question
Which part of the communication process is most important?
Sender
Message
Encoding
Decoding
Feedback
There is no one best answer. All parts must work together for communication to be effective. Students should discuss situations when parts of the process may seem more important – such as combat, discussion with a spouse or discussions with a child.

15. 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

16. 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

17. Verbal & Nonverbal 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.

18. Information Richness and Communication Media
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.

19. Information Richness 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

20. The Information Richness of Communication Media
Figure 13.3

21. Communication Media Face-to-Face communication
Has highest information richness
Can take advantage of verbal and nonverbal signals
Provides for instant feedback

22. 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

23. 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.

24. 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
Personal addressing helps ensure receiver actually reads the message—personal letters and are common forms.
Does not provide instant feedback to the sender although sender may get feedback later.
Excellent media for complex messages requesting follow-up actions by receiver.

25. 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)

26. Information Overload Information Overload
A superabundance of information that increases the likelihood that important information is ignored or overlooked and tangential information receives attention

27. IT and the Product Life Cycle
The way demand for a product changes in a predictable pattern over time.
Figure 13.4 6

28. The Network of Computing Power
The typical organization-wide computing network is a four-tier network solution that consists of “external” mobile computing devices such as netbooks, smartphones, and tablet computers, connected to desktops and laptops, and then through “internal” rack servers to a company’s mainframe

29. A Four-Tier Information System with Cloud Computing
Figure 13.5

30. The Network of Computing Power
Cloud computing offers outsourced, pay-as-you-go, on-demand Internet software capabilities to companies for a fee.
A major concern of users is information reliability and security

31. Software Developments
Operating system software
software that tells computer hardware how to run
Applications software
software designed for a specific task or use

32. 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

33. The Organizational Hierarchy
Drawbacks
Can reduce timeliness of information
Information can be distorted
Tall structure can make for an expensive information system

34. Four Computer-Based Management Information Systems
Figure 13.6

35. The Organizational Hierarchy
Information distortion
changes in meaning that occur as information passes through a series of senders and receivers

36. Types of Information Systems
Transaction Processing Systems
Systems designed to handle large volumes of routine transactions.
First computer-based information systems handling billing, payroll, and supplier payments. 11

37. Types of Information Systems
Operations Information Systems
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.

38. Types of Information Systems
Decision Support Systems
An interactive computer-based management information system with model-building capability that managers can use when they must make non-routine decisions 12

39. 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. 12

40. Video: In Good Company
Describe how Gore encourages horizontal communication.
How well does Gore practice open-book management?