Higher Administration ITFM

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Higher AdministrationHigher AdministrationITFMITFM

Outcome 1Outcome 1

Information & Decision MakingInformation & Decision Making

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The nature of informationThe nature of information

Data – raw facts and figures which have Data – raw facts and figures which have been collected and organised but have not been collected and organised but have not been processed.been processed.

Information – data which has been Information – data which has been processed into a form which assists the processed into a form which assists the person who received the information to person who received the information to arrive at a decision.arrive at a decision.

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Types of information:Types of information:

Quantitative Quantitative information is:information is: easily counted or easily counted or

measuredmeasured factual and often in factual and often in

number formatnumber format eg sales figures, eg sales figures,

salary costs, salary costs, production rates, production rates, number of people number of people employed, etcemployed, etc

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QualitativeQualitative descriptive descriptive

informationinformation opinions, attitudes opinions, attitudes

and value and value judgementsjudgements

eg rating the eg rating the service as good, service as good, satisfactory or satisfactory or unsatisfactoryunsatisfactory

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PrimaryPrimary information gathered first handinformation gathered first hand for a specific purposefor a specific purpose new informationnew information can be collected through observation, opinion can be collected through observation, opinion

polls, interviews, telephone surveys, polls, interviews, telephone surveys, questionnaires, etc.questionnaires, etc.

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SecondarySecondary information which already existsinformation which already exists gathered for one purpose in the past but gathered for one purpose in the past but

available for other usersavailable for other users organisations should check whether organisations should check whether

secondary information is already available secondary information is already available before arranging for the collection of primary before arranging for the collection of primary informationinformation

egs government statistics, the Internet, egs government statistics, the Internet, teletext, trade journals, consumer surveys, etcteletext, trade journals, consumer surveys, etc

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ExternalExternal information obtained from out with the information obtained from out with the

organisationorganisation eg government reports, trade journals, eg government reports, trade journals,

newspaper articles, CD-ROMs, the Internet, newspaper articles, CD-ROMs, the Internet, etcetc

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InternalInternal information gathered from the organisation’s information gathered from the organisation’s

own internal records.own internal records. concerned with what is happening within the concerned with what is happening within the

organisationorganisation eg sales figures, salary information, eg sales figures, salary information,

production rates, etcproduction rates, etc

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Information and Communications Information and Communications Technology (ICT)Technology (ICT)

Collecting, Collecting, processing and processing and transmitting transmitting information by information by electronic electronic means.means.

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Collecting/TransmittingCollecting/Transmitting

EmailEmail The InternetThe Internet FaxFax Mobile phoneMobile phone VoicemailVoicemail TelephoneTelephone Telephone answering machineTelephone answering machine Electronic diaryElectronic diary

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ProcessingProcessing

Using software packages such as:Using software packages such as: Word processingWord processing SpreadsheetsSpreadsheets DatabasesDatabases Desktop publishing (DTP)Desktop publishing (DTP) etcetc

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Increased use of ICT - AdvantagesIncreased use of ICT - Advantages

Increases in:Increases in: Volume, speed and ease which info can be Volume, speed and ease which info can be

accessed, processed and transmittedaccessed, processed and transmitted Employees’ productivityEmployees’ productivity Quality of output of info (accuracy and Quality of output of info (accuracy and

appearance)appearance) Employees’ motivation (repetition reduced)Employees’ motivation (repetition reduced) Opportunities to standardise the collection, Opportunities to standardise the collection,

processing and transmission of infoprocessing and transmission of info Flexibility in the use of equipmentFlexibility in the use of equipment

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Sources of Information - ElectronicSources of Information - Electronic

Information held in electronic form:Information held in electronic form: on computer files (databases, wp docs, etc)on computer files (databases, wp docs, etc) on CD-ROMon CD-ROM the Internetthe Internet viewdataviewdata teletextteletext

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Sources of Information – Paper-Sources of Information – Paper-basedbased

Information in printed form – the Information in printed form – the information may be internal or external to information may be internal or external to the organisation:the organisation: Phone Book/Yellow PagesPhone Book/Yellow Pages Dictionaries/encyclopaedias, gazetteersDictionaries/encyclopaedias, gazetteers Road mapsRoad maps AA/RAC handbooksAA/RAC handbooks Whitaker’s AlmanacWhitaker’s Almanac Postal leaflets, etcPostal leaflets, etc

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Sources of Information - OralSources of Information - Oral

Information is passed on by word of mouth.Information is passed on by word of mouth. In order for this to be of value as a reliable In order for this to be of value as a reliable

source of information al full and accurate record source of information al full and accurate record should be kept of what was said:should be kept of what was said: MeetingsMeetings InterviewsInterviews VisitsVisits Telephone/Mobile callsTelephone/Mobile calls Videophone/VideoconferencingVideophone/Videoconferencing etcetc

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Sources of Information - InternalSources of Information - Internal

Information which is obtained from Information which is obtained from organisation’s own internal records.organisation’s own internal records.

The value will depend on the accuracy, The value will depend on the accuracy, relevance and quality of the information.relevance and quality of the information. Personnel recordsPersonnel records Payroll recordsPayroll records Company handbooksCompany handbooks Minutes of meetingsMinutes of meetings Stock records, etcStock records, etc

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Sources of Information - ExternalSources of Information - External

Information which is obtained from outwith Information which is obtained from outwith the organisation.the organisation.

May be required when comparing the May be required when comparing the organisation’s performance against other organisation’s performance against other similar businesses.similar businesses. Government reports/publicationsGovernment reports/publications InternetInternet Newspaper articlesNewspaper articles Reference books, etcReference books, etc

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Sources of InformationSources of Information

See pages 80-84 of your notes for more See pages 80-84 of your notes for more detailed descriptions of many different detailed descriptions of many different examples of sources of information. examples of sources of information.

The basic requirement of information is The basic requirement of information is that it must be that it must be meaningfulmeaningful and and usefuluseful to to its user.its user.

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Features of Good InformationFeatures of Good Information

AccurateAccurate

Having inaccurate information may be worse Having inaccurate information may be worse than having no information at all.than having no information at all.

Users of information must be certain that the Users of information must be certain that the information does not contain errors (it must information does not contain errors (it must provide a sound basis upon which to make provide a sound basis upon which to make decisions)decisions)

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Up-to-dateUp-to-date

The latest information should be availableThe latest information should be available

For example: on recent sales trends and For example: on recent sales trends and stock levels when determining production stock levels when determining production targets for the next year.targets for the next year.

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RelevantRelevant

The information should be relevant to the area The information should be relevant to the area being looked at and the decisions which has being looked at and the decisions which has to be taken.to be taken.

Irrelevant information may delay or confuse Irrelevant information may delay or confuse decision takingdecision taking

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SufficientSufficient

The information should be:The information should be:• ComprehensiveComprehensive

• CompleteComplete

• ConciseConcise

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AppropriateAppropriate

The information should be presented in a The information should be presented in a format which is comprehensible and can be format which is comprehensible and can be readily used by the people required to make readily used by the people required to make decisions.decisions.

The information must not be ambiguous or The information must not be ambiguous or misleading.misleading.

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AvailableAvailable

The information should be available at the The information should be available at the time it is required.time it is required.

If there is a delay in accessing the required If there is a delay in accessing the required information then decisions will be delayed and information then decisions will be delayed and opportunities may be missed or wrong opportunities may be missed or wrong decisions may be taken.decisions may be taken.

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Cost effectiveCost 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 What is acceptable as far as cost is concerned will, of course, depend on the type concerned will, of course, depend on the type and level of decision to be taken.and level of decision to be taken.

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Effects of Poor CommunicationEffects of Poor Communication

work is not productive - tasks are not completed work is not productive - tasks are not completed on timeon time

important tasks are overlookedimportant tasks are overlooked poor quality work is produced which can impact poor quality work is produced which can impact

upon customersupon customers individuals may feel demotivated if they are not individuals may feel demotivated if they are not

kept informedkept informed individuals work rate may suffer through no fault individuals work rate may suffer through no fault

of their own and they may face disciplinary of their own and they may face disciplinary actionaction

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Decisions, decisionsDecisions, decisions

““Whatever a manager does, he does Whatever a manager does, he does through making decisions. …management is through making decisions. …management is always a decision-making process.”always a decision-making process.”

The Practice of Management by Peter F The Practice of Management by Peter F DruckerDrucker

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Strategic DecisionsStrategic Decisions

Set the aims and objectives of the Set the aims and objectives of the organisation.organisation.

Concerned with the production of policies Concerned with the production of policies which give the organisation its overall which give the organisation its overall direction, purpose and competitive edge.direction, purpose and competitive edge.

Not concerned with the detail of how such Not concerned with the detail of how such policies are put into action.policies are put into action.

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Strategic DecisionsStrategic Decisions

Long-term – affecting the organisation Long-term – affecting the organisation over a number of yearsover a number of years

High-risk – once taken, difficult and costly High-risk – once taken, difficult and costly to reverse if something goes wrongto reverse if something goes wrong

Taken by top levels of management (BOD, Taken by top levels of management (BOD, Chief Executives, Heads of Depts, etc) Chief Executives, Heads of Depts, etc)

Example: whether to take over a rival firmExample: whether to take over a rival firm

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Tactical DecisionsTactical Decisions

Concerned with putting the strategic Concerned with putting the strategic decisions into action.decisions into action.

Concerned with bringing together and Concerned with bringing together and using the resources of a business to using the resources of a business to achieve the aims and objectives of the achieve the aims and objectives of the organisation.organisation.

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Tactical DecisionsTactical Decisions

Medium term – 6 months to one yearMedium term – 6 months to one year Medium-risk – it will take some time to put Medium-risk – it will take some time to put

right if the wrong decision is takenright if the wrong decision is taken Taken by middle levels of management Taken by middle levels of management

(senior staff, factory managers, etc)(senior staff, factory managers, etc) Example: whether to introduce new Example: whether to introduce new

working arrangements in the factoryworking arrangements in the factory

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Operational DecisionsOperational Decisions

Concerned with the detail of tactical Concerned with the detail of tactical decisions.decisions.

Day-to-day decisions to ensure standards Day-to-day decisions to ensure standards and targets are met and adjustments are and targets are met and adjustments are made in line with changing circumstances.made in line with changing circumstances.

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Operational decisionsOperational decisions

Short-term – a few days to a few monthsShort-term – a few days to a few months Taken on a daily basisTaken on a daily basis Usually low risk – rectified quickly at little Usually low risk – rectified quickly at little

cost if the wrong decision takencost if the wrong decision taken Taken by lower levels of management Taken by lower levels of management

(supervisors, managerial assistants, etc)(supervisors, managerial assistants, etc) Example: when to schedule meetings of Example: when to schedule meetings of

staff in the sales departmentstaff in the sales department

Documents

Higher Administration ITFM