Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Communication and Information

Technology Management

Chapter Thirteen

13-2

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

13-3

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

13-4

Information and the Manager’s Job

Data

Raw, unsummarized, and unanalyzed facts.

Information

Data that is organized in a meaningful fashion

13-5

Factors Affecting the Usefulness of Information

Figure 13.1

13-6

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.

13-7

Question?

What type of information system do managers plan and design to provide themselves with the specific information they need?A. Decision Support System

B. Management Information System

C. Employee Decision Matrix

D. Management Support System

13-8

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.

13-9

Information and Decisions

Most of management is about making decisions

To make effective decisions, managers need information, both from inside and outside the organization

13-10

Communication, Information and Management

Communication

The sharing of information between two or more individuals or groups to reach a common understanding.

13-11

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

13-12

The Communication Process

Transmission phase

information is shared by two or more people

Feedback phase

a common understanding is assured

13-13

The Communication Process

Figure 13.2

13-14

Discussion Question

Which part of the communication process is most important?

A. Sender

B. Message

C. Encoding

D. Decoding

E. Feedback

13-15

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

13-16

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

13-17

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.

13-18

Information Richness andCommunication 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.

13-19

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

13-20

The Information Richness of Communication Media

Figure 13.3

13-21

Communication Media

Face-to-Face communication

Has highest information richness

Can take advantage of verbal and nonverbal signals

Provides for instant feedback

13-22

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

13-23

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.

13-24

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

13-25

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)

13-26

Information Overload

Information Overload

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

13-27

IT and the Product Life Cycle

Product life cycle

The way demand for a product changes in a predictable pattern over time.

Figure 13.4

13-28

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

13-29

Figure 13.5

A Four-Tier Information System with Cloud Computing

13-30

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

13-31

Software Developments

Operating system software software that tells computer hardware how to run

Applications software software designed for a specific task or use

13-32

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

13-33

The Organizational Hierarchy

Drawbacks

Can reduce timeliness of information

Information can be distorted

Tall structure can make for an expensiveinformation system

13-34

Four Computer-Based Management Information Systems

Figure 13.6

13-35

The Organizational Hierarchy

Information distortion

changes in meaning that occur as information passes through a series of senders and receivers

13-36

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.

13-37

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.

13-38

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

13-39

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.

13-40

Video: In Good Company

Describe how Gore encourages horizontal communication.

How well does Gore practice open-book management?