1. Communication and Information Technology Management
Chapter Thirteen
McGraw-Hill/Irwin
Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved.

2. 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

3. 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

4. Information and the Manager’s Job
Data
Raw, unsummarized, and unanalyzed facts.
Information
Data that is organized in a meaningful fashion
13-4 2

5. Factors Affecting the Usefulness of Information
Figure 13.1
13-5

6. Attributes of Useful Information
13-6

7. Question?
What type of information system do managers plan and design to provide themselves with the specific information they need?
Decision Support System
Management Information System
Employee Decision Matrix
Management Support System
The correct answer is “B” – Management Information System. See next slide
13-7

8. 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

9. 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

10. Communication, Information and Management
The sharing of information between two or more individuals or groups to reach a common understanding.
13-10

11. 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

12. The Communication Process
Transmission phase
information is shared by two or more people
Feedback phase
a common understanding is assured
13-12

13. The Communication Process
Figure 13.2
13-13

14. Discussion Question
Which part of the communication process is most important?
Sender
Message
Encoding
Decoding
Feedback
There is no one best answer. All parts must work together for communication to be effective. Students should discuss situations when parts of the process may seem more important – such as combat, discussion with a spouse or discussions with a child.
13-14

15. 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

16. 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

17. Verbal & Nonverbal 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.
13-17

18. 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.
13-18

19. 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

20. The Information Richness of Communication Media
Figure 13.3
13-20

21. Communication Media Face-to-Face Has highest information richness
Can take advantage of verbal and nonverbal signals
Provides for instant feedback
13-21

22. 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

23. 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.
13-23

24. 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
Personal addressing helps ensure receiver actually reads the message—personal letters and are common forms.
Does not provide instant feedback to the sender although sender may get feedback later.
Excellent media for complex messages requesting follow-up actions by receiver.
13-24

25. 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

26. 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

27. 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.
13-27 6

28. Question?
What is the exchange of information through a group of interlinked computers?
Ethernet
Decision Support System
Networking
Broadband Access
The correct answer is “C” – networking. See next slide 13.
13-28

29. 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).
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).
Mainframes are large computers processing vast amounts of information .
The Internet is a world wide network of computers.
13-29 8

30. A Typical Three-Tier Information System
Figure 13.4
13-30

31. 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

32. 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

33. The Organizational Hierarchy
Drawbacks
Can reduce timeliness of information
Reduces quality of information
Tall structure can make for an expensive information system
13-33

34. Four Computer-Based Management Information Systems
Figure 13.5
13-34

35. The Organizational Hierarchy
Information distortion
changes in meaning that occur as information passes through a series of senders and receivers
13-35

36. 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.
13-36 11

37. 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.
13-37

38. 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 12

39. 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 12

40. 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?
Better Manners = Better Communication
Teaching Objective: To explain how people benefit professionally and personally by practicing manners and communication skills
Summary: Susan Fitter, a consultant on manners and communication, advises people to work on three areas: improving communication skills, being kind, and presenting a confident self in interactions. Fitter emphasizes effective listening. Her comments on various communication media illustrate their information richness.
Questions:
Why does Susan Fitter emphasize the receiver’s role in face-to-face communication?
The receiver’s responsibility is a difficult task that requires attention, patience, and good manners. Many people are thinking of what they will say next instead of truly listening. The receiver needs to pay attention and listen carefully, avoid interrupting, use nonverbal cues like nods and smiles, and reflect back what the sender is saying through statements like, “I am hearing what you say” and “so, you’re saying that” to show understanding or empathy.
What does Susan Fitter’s advice illustrate about the richness of various media?
Fitter’s comments aptly illustrate the range of information richness. She is a proponent of using and text messaging. Her comment that “it’s still communication” indicates that those media are adequate but impersonal, low in information richness. She advises sending a handwritten note at times. Such personal written communication, higher in information richness, demonstrates kindness and good manners. Lastly, Fitter advises viewers to call friends and family regularly. She points out that phone conversations, which are higher in information richness than are impersonal media, make both caller and recipient feel good.
Why does a communication expert like Susan Fitter instruct people in how to shake hands?
A handshake is a common form of nonverbal communication in business and social situations. Along with the accompanying facial expression, the handshake gives two people impressions of each other. Looking into the other person’s eyes, smiling if the occasion warrants it, and shaking the person’s hand firmly and briefly demonstrates confidence and makes a positive impression.
13-40