Transcript Essentials of Contemporary Management 3e

Essentials of
Contemporary
Management
Chapter
13
Communication and Information
Technology Management
PowerPoint Presentation by Charlie Cook
© Copyright The McGraw-Hill Companies, Inc., 2004. All rights reserved.
Learning Objectives
• After studying the chapter, you should be able to:
Differentiate between data and information, and list
the attributes of useful information, and describe
three reasons why managers must have access to
information to perform their tasks and roles
effectively.
Explain why effective communication helps an
organization gain a competitive advantage.
Define information richness, and describe the
information richness of communication media available
to managers.
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13–2
Learning Objectives (cont’d)
Describe the computer hardware and software
innovations that have created the information
technology revolution.
Differentiate among four kinds of management
information systems.
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13–3
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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Attributes of Useful Information
Attributes
Quality
The accuracy and reliability of available
information affects the quality of decisions that
managers make using the information.
Timeliness
The availability of real-time information that
reflects current conditions allows managers to
maximize the effectiveness of their decisions.
Completeness
Complete information allows managers to
consider all relevant factors when making
decisions.
Relevance
Having information specific to a situation assists
managers in making better decisions.
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13–6
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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13–7
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
Figure 13.2
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13–10
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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Information Richness of Communication Media
Figure 13.3
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Communication Media
• Face-to-Face
Has highest information richness.
Can take advantage of verbal and nonverbal
signals.
Provides for instant feedback.
• Management by wandering around takes
advantage of this with informal talks to workers.
• Video conferences provide
much of this richness and
reduce travel costs and
meeting times.
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Communication Media (cont’d)
• 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.
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Communication Media (cont’d)
• Personally Addressed Written Communication
Has a lower richness than the verbal forms of
communication, but still is directed at a given
person.
• Personal addressing helps ensure receiver
actually reads the message—personal letters
and e-mail 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.
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E-Mail Dos and Don’ts
• E-mail allows telecommuting employees to
work from home and keep in contact.
• The use of e-mail is growing rapidly and email etiquette is expected:
Typing messages in all CAPITALS is seen as
“screaming” at the receiver.
Punctuate your messages for easy reading and
don’t ramble on.
Pay attention to spelling and treat the message
with a much care as a written letter.
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Communication Media (cont’d)
• Impersonal Written Communication
Has the lowest information richness.
• Good for messages to many receivers where
little or feedback is expected (e.g., newsletters,
reports).
• May add to the receiver’s
information overload:
A superabundance of
information that increases
the likelihood that important
information is ignored and
tangential information receives attention.
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13–19
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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The Information Technology Revolution
• The Tumbling Price of Information
The cost of computer hardware has dropped
dramatically while the power of computers has
risen sharply.
• Wireless communications
Cellular service has grown rapidly to over 110
million users.
Wireless access now connects laptops to networks.
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The Information Technology Revolution
• Computer Networks
Networking
• The exchange of information through a group or
network of interlinked computers.
• Servers are powerful computers that relay
information to client computers connected on a
Local Area Network (LAN).
• Mainframes are large computers processing vast
amounts of information.
• The Internet is a world wide network of
computers.
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A Typical ThreeTier Information
System
Figure 13.4
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Software Developments
Key Developments
Operating systems
Software that tells the computer how to run
itself.
Applications software
Provide for functions such as word
processing, spreadsheets, and graphics.
Artificial intelligence
Behavior performed by a machine that, if
performed by a human, would be called
intelligent.
Speech recognition
software
Allows a computer to hear and act on
spoken commands.
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Four Computer-Based
Management Information Systems
Figure 13.5
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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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The Impact and Limitations
of Information Systems
• Management Information Systems
Have provided managers with better information,
enabling better decision making.
• Effective information systems can be a source of
competitive advantage.
Computerized communications can lack the vital
elements of human communication that contribute
to information richness.
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