McGraw-Hill/Irwin

Communication and Information Technology Management

Chapter Thirteen

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 13-2

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 13-3

Information and the Manager’s Job

•

Data

– Raw, unsummarized, and unanalyzed facts.

•

Information

– Data that is organized in a meaningful fashion 13-4

Factors Affecting the Usefulness of Information Figure 13.1

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Attributes of Useful Information

Attributes Quality Timelessness Completeness Relevance 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.

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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 13-7

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 13-8

Information and Decisions

• Most of management is about making decisions • To make effective decisions, managers need information, both from inside and outside the organization 13-9

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 13-11

The Communication Process

•

Transmission phase

– information is shared by two or more people •

Feedback phase

– a common understanding is assured 13-12

The Communication Process

Figure 13.2

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Discussion Question Which part of the communication process is most important?

A.

B.

C.

Sender Message Encoding D.

E.

Decoding Feedback 13-14

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 13-15

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 13-16

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 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 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 13-19

Figure 13.3

The Information Richness of Communication Media 13-20

Communication Media •

Face-to-Face

– Has highest information richness – Can take advantage of verbal and nonverbal signals – Provides for instant feedback 13-21

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 13-22

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.

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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 13-24

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) 13-25

Information Overload •

Information Overload

– A superabundance of information that increases the likelihood that important information is ignored or overlooked and tangential information receives attention 13-26

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 13-28

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 13-31

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 13-32

The Organizational Hierarchy • • •

Drawbacks

Can reduce timeliness of information Reduces quality of information Tall structure can make for an expensive information system 13-33

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 13-35

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 non routine decisions 13-38

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.

13-39

Video case: Better Manners = Better Communication • • 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? 13-40