Chapter 13 - Principle of Management

7/28/2019 Chapter 13 - Principle of Management

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Communication

and InformationTechnology

Management

ChapterThirteen

Copyri ght © 2011 by the M cGraw-H il l Companies, I nc. Al l r ights reserved. McGraw-Hill/Irwin





Learning Objectives

LO3 Define information richness, and describethe information richness of communicationmedia 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 unanalyzedfacts.

• Information – Data that is

organized in ameaningful fashion

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Factors Affecting the Usefulness of Information

Figure 13.1 13-5



Attributes of Useful Information

Attributes

Quality The accuracy and reliability of availableinformation affects the quality of decisions thatmanagers make using the information.

Timelessness The availability of real-time information thatreflects current conditions allows managers tomaximize the effectiveness of their decisions.

Completeness Complete information allows managers to

consider all relevant factors when makingdecisions.

Relevance Having information specific to a situation assistsmanagers in making better decisions.

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Question?

What type of information system do managersplan and design to provide themselves withthe specific information they need?

A. Decision Support SystemB. Management Information SystemC. Employee Decision Matrix

D. Management Support System

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Information Systems and Technology

• ManagementInformation System

– An informationsystem thatmanagers plan anddesign to providethemselves with thespecific informationthey need

• InformationTechnology

– the means by whichinformation isacquired, organized,stored, manipulated,and transmitted

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Communication, Information andManagement

• Communication – The sharing of information between two or more

individuals or groups to reach a commonunderstanding.

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Importance of Good Communication

• Increased efficiency in new technologies andskills

•

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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Figure 13.2 13-13



Discussion Question

Which part of the communication process ismost important?

A. SenderB. Message

C. Encoding

D. DecodingE. Feedback

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• 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 13-15





Verbal & Nonverbal Communication

• VerbalCommunication

– The encoding of messages into words,either written orspoken

• NonverbalCommunication

– The encoding of messages by meansof facial expressions,body language, andstyles of dress.

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The Dangers of Ineffective Communication

Managers and their subordinates can becomeeffective communicators by:

•

Selecting an appropriate medium for eachmessage —there is no one “best” medium .• Considering information richness

–

A medium with high richness can carry muchmore 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 themedium enables the sender and receiver to reacha common understanding

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Communication Media

• Face-to-Face – Has highest information richness –

Can take advantage of verbal and nonverbalsignals – 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 talksinformally with employees about issues andconcerns

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Communication Media

• Spoken Communication ElectronicallyTransmitted

–

Has the second highest information richness. – Telephone conversations are information rich with

tone of voice, sender’s emphasis, and quickfeedback, but provide no visual nonverbal cues.

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Communication Media

• Personally Addressed WrittenCommunication

– Has a lower richness than the verbal forms of communication, but still is directed at a givenperson.

– 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 littleor 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 isignored or overlooked and tangential informationreceives 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 hasrisen sharply.

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Question?

What is the exchange of information through agroup of interlinked computers?

A. Ethernet

B. Decision Support System

C. Networking

D. 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 aLocal Area Network (LAN).

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Figure 13.4

A Typical Three-Tier InformationSystem

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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 calledintelligent

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The Organizational Hierarchy

Traditionally, managers have used theorganizational hierarchy as the main systemfor gathering information necessary to makedecisions and coordinate and control activities

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Drawbacks• Can reduce timeliness of information•

Reduces quality of information• Tall structure can make for an expensive

information system

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• Informationdistortion

– changes in meaningthat occur asinformation passesthrough a series of senders andreceivers

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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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• Operations Information Systems (OIS) – Systems that gather, organize, and summarize

comprehensive data in a form of value tomanagers.

– Can help managers with non-routine decisionssuch as customer service and productivity.

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• Decision Support Systems (DSS) – An interactive computer-based management

information system with model-building capabilitythat managers can use when they must make non-routine decisions

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• Expert Systems and Artificial Intelligence – Employ human knowledge captured in a computer

to solve problems that ordinarily require humanexpertise.

– Uses artificial Intelligence to recognize, formulate,solve problems, and learn from experience.

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Video case: Better Manners = BetterCommunication

• Why does Susan Fitter emphasize thereceiver’s role in face -to-face communication?

•

Why does a communication expert like SusanFitter instruct people in how to shake hands?

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Chapter 13 - Principle of Management