1. 13-1 Learning Objectives After studying the chapter, you should be able to: 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 Explain why effective communication helps an organization gain a competitive advantage and describe the communication process © 2007 The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

2. 13-2 Information and the Manager’s Job Data Raw, unsummarized, and unanalyzed facts. Information Data that is organized in a meaningful fashion

3. 13-3 Attributes of Useful Information

4. 13-4 Information Systems and Technology Information Technology – the means by which information is acquired, organized, stored, manipulated, and transmitted

5. 13-5 Information and Decisions Most of management is about making decisions To make effective decisions, managers need information, both from inside and outside the organization

6. 13-6 Information and Control Managers achieve control by: establishing measurable goals, measuring actual performance, compare actual performance with goals, take any corrective action Managers must have information to achieve control over any organizational activity

7. 13-7 Information and Coordination Coordination problems that managers face in managing global supply chains are increasing Managers have adopted sophisticated IT that helps them coordinate the flow of materials, semifinished goods, and finished goods throughout the world

8. 13-8 Communication and Management Communication The sharing of information between two or more individuals or groups to reach a common understanding.

9. 13-9 Communication and Management 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

10. 13-10 The Communication Process Phases of the Communication Process: Transmission phase in which information is shared by two or more people. Feedback phase in which a common understanding is assured.

11. 13-11 The Communication Process Figure 13.2

12. 13-12 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.

13. 13-13 Information Richness The amount of information that a communication medium can carry The extent to which the medium enables the sender and receiver to reach a common understanding

14. 13-14 Communication Media Face-to-Face Has highest information richness. Can take advantage of verbal and nonverbal signals. Provides for instant feedback.

15. 13-15 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

16. 13-16 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.

17. 13-17 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

18. 13-18 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)

19. 13-19 The Information Technology Revolution The Tumbling Price of Information The cost of computer hardware has dropped dramatically while the power of computers has risen sharply.

20. 13-20 The Information Technology Revolution Wireless communications Cellular service has grown rapidly to over 110 million users. Wireless access now connects laptops to networks.

21. 13-21 The Information Technology Revolution Computer Networks 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).

22. 13-22 Figure 13.4 A Typical Three-Tier Information System

23. 13-23 Four Computer-Based Management Information Systems