Transcript Slide 1

Communication
and Information
Technology
Management
Chapter
Thirteen
McGraw-Hill/Irwin
Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved.
Learning Objectives
LO1 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
LO2 Explain why effective communication-the sharing
of information-helps an organization gain a
competitive advantage and describe the
communication process
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Learning Objectives
LO3 Define information richness, and describe
the information richness of communication
media available to managers
LO4 Differentiate among four kinds of
management information systems
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Information and the Manager’s Job
• Data
– Raw, unsummarized,
and unanalyzed
facts.
• Information
– Data that is
organized in a
meaningful fashion
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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.
Timelessness
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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Question?
What type of information system do managers
plan and design to provide themselves with
the specific information they need?
A.
B.
C.
D.
Decision Support System
Management Information System
Employee Decision Matrix
Management Support System
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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
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Information and Decisions
• Most of
management is
about making
decisions
• To make effective
decisions, managers
need information,
both from inside and
outside the
organization
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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.
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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
• Transmission phase
– information is shared
by two or more
people
• Feedback phase
– a common
understanding is
assured
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The Communication Process
Figure 13.2
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Discussion Question
Which part of the communication process is
most important?
A. Sender
B. Message
C. Encoding
D. Decoding
E. Feedback
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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
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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
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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.
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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.
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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
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The 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
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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
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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.
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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
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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)
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Information Overload
• Information Overload
– A superabundance of information that increases
the likelihood that important information is
ignored or overlooked and tangential information
receives attention
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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.
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Question?
What is the exchange of information through a
group of interlinked computers?
A.
B.
C.
D.
Ethernet
Decision Support System
Networking
Broadband Access
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Advances in Information Technology
• 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).
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A Typical Three-Tier Information
System
Figure 13.4
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Software Developments
• Operating system software
– software that tells computer hardware how to run
• Applications software
– software designed for a specific task or use
• Artificial intelligence
– behavior performed by a machine that, if
performed by a human being, would be called
intelligent
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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
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The Organizational Hierarchy
Drawbacks
• Can reduce timeliness of information
• Reduces quality of information
• Tall structure can make for an expensive
information system
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Four Computer-Based Management
Information Systems
Figure 13.5
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The Organizational Hierarchy
• Information
distortion
– changes in meaning
that occur as
information passes
through a series of
senders and
receivers
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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.
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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.
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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 nonroutine decisions
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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.
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Video case: Better Manners = Better
Communication
• Why does Susan Fitter emphasize the
receiver’s role in face-to-face communication?
• Why does a communication expert like Susan
Fitter instruct people in how to shake hands?
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