Transcript Essentials of Contemporary Management 3e

Information and the Manager’s Job
• Data
Raw, unsummarized, and unanalyzed facts.
• Information
Data that is organized in a meaningful fashion.
• Why Managers Need Information:
To make effective decisions.
To control activities of the organization.
To coordinate the activities of the organization.
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Factors Affecting the Usefulness of Information
Figure 13.1
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Information Systems and Technology
Key Terms
Information
system
A system for acquiring, organizing, storing,
manipulating, and transmitting information.
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.
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Communication, Information,
and Management
• Communication
The sharing of information between two or more
individuals or groups to reach a common
understanding.
• 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.
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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).
Noise: anything harming the communication
process.
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The Communication Process (cont’d)
• Messages are transmitted over a medium to a
receiver.
Medium: the pathway over which the message is
transmitted (e.g., telephone, written note, email).
Receiver: the person getting 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.
Feedback by receiver informs the sender that the
message is understood or that it must be re-sent.
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Forms of 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.
Supports or undercuts the spoken message.
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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 (the amount of
information a medium can carry).
• 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.
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The Information Technology Revolution
The Tumbling Price
of Information
Wireless
Communications
Information
Technology
Software
Development
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Computer
Networks
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Types of Information Systems
• 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.
• 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.
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Types of Information Systems (cont’d)
• Decision Support Systems (DSS)
Provide interactive models to help middle and upper
managers make better decisions.
• Excellent for unusual, non-programmed
decisions.
• Analyzes investment potential, new product
pricing.
Executive Support System (ESS)
• Sophisticated version of a DSS matched a top
manager’s needs.
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Types of Information Systems (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.
• Expert 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.
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