Communication and Information Technology Management Chapter Thirteen Copyright © 2011 by the...

Communication Communication and Information and Information

Technology Technology ManagementManagement

Chapter Thirteen

Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin

Learning ObjectivesLearning 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 ObjectivesLearning 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 JobInformation 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 Factors Affecting the Usefulness of InformationInformation

Figure 13.1 13-5

Attributes of Useful InformationAttributes 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?Question?

What type of information system do managers plan and design to provide themselves with the specific information they need?

A. Decision Support SystemB. Management Information SystemC. Employee Decision MatrixD. Management Support System

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Information Systems and TechnologyInformation 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 DecisionsInformation 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 Communication, Information and ManagementManagement

• Communication– The sharing of information between two or more

individuals or groups to reach a common understanding.

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Importance of Good CommunicationImportance 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 ProcessThe 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 Discussion Question

Which part of the communication process is most important?

A. SenderB. MessageC. EncodingD. 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

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• 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 CommunicationVerbal & 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 CommunicationThe 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 RichnessInformation 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 The Information Richness of Communication MediaCommunication Media

Figure 13.3 13-20

Communication MediaCommunication 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 CommunicationFace-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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• 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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• 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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• 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 OverloadInformation 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 TechnologyAdvances 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?Question?

What is the exchange of information through a group of interlinked computers?

A. EthernetB. Decision Support SystemC. NetworkingD. Broadband Access

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Advances in Information TechnologyAdvances 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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Figure 13.4

A Typical Three-Tier Information A Typical Three-Tier Information SystemSystem

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Software DevelopmentsSoftware 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 HierarchyThe 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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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 Four Computer-Based Management Information SystemsInformation Systems

Figure 13.5 13-34


• Information distortion – changes in meaning

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

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Types of Information SystemsTypes 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 to managers.

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

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

information system with model-building capability that 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 human expertise.

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

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Video case: Better Manners = Better Video case: Better Manners = Better CommunicationCommunication

• 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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Communication and Information Technology Management Chapter Thirteen Copyright © 2011 by the...

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