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 Managers 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. The availability of real-time information that reflects current conditions allows managers to maximize the effectiveness of their decisions. Complete information allows managers to consider all relevant factors when making decisions. Having information specific to a situation assists managers in making better decisions.

Timelessness

Completeness

Relevance

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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 messagethere 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, senders 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 receivers 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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