Information

Definition: Information is a necessary and vital input in any decision making process in an organisation. However, it is not available in ready from; rather it has to be generated from data which act as a raw material that need some processing.

Below figure depicts the generation of information.

 

Thus information in its unprocessed from is called data, which is generated as a by-product of transaction taking place in the organisation. Information on other hand is processed data and has an element of surprise. Information reduces uncertainty and triggers action.

Types of information

•         Strategic information

•         Tactical information

•         Operational information

•         Strategic information: Strategic information is required by by the managers at the strategic level of management for the formulation of organisational strategies.

This relate to long term planning policies of the organisation as a whole.

          Eg: information pertaining to new technologies, new products ,Competitors,      etc

•         Tactical information:

•         used in short-term planning and is of used at management control level.

•         For example, for sales analysis and forecast annual financial statements, etc.

•         Based on data arising from current activities of the organisation.

•         Operational information:

•         It applies to short period which may vary from an hour to a few days.

•         Generally used by decision maker at operation level.

•         It is required for taking immediate action.

•         For example it may include current stock-in hand, work-in-progress level etc.