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

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

3. Factors Affecting the Usefulness of Information Figure 13.1 13-3

4. Attributes of Useful Information 13-4

5. 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 13-5

6. Information and Decisions Most of management is about making decisions To make effective decisions, managers need information, both from inside and outside the organization 13-6

7. Communication, Information and Management Communication – The sharing of information between two or more individuals or groups to reach a common understanding. 13-7

8. 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 13-8

9. The Communication Process Transmission phase – information is shared by two or more people Feedback phase – a common understanding is assured 13-9

10. The Communication Process Figure 13.2 13-10

11. 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 13-11

12. 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 13-12

13. 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. 13-13

14. 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. 13-14

15. 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 13-15

16. The Information Richness of Communication Media Figure 13.3 13-16

17. Communication Media Face-to-Face – Has highest information richness – Can take advantage of verbal and nonverbal signals – Provides for instant feedback 13-17

18. 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 13-18

19. 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. 13-19

20. 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 13-20

21. 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) 13-21

22. Information Overload – A superabundance of information that increases the likelihood that important information is ignored or overlooked and tangential information receives attention 13-22

23. 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. 13-23

24. 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 13-24

25. The Organizational Hierarchy Drawbacks Can reduce timeliness of information Reduces quality of information Tall structure can make for an expensive information system 13-25

26. Four Computer-Based Management Information Systems Figure 13.5 13-26

27. The Organizational Hierarchy Information distortion – changes in meaning that occur as information passes through a series of senders and receivers 13-27

28. 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. 13-28

29. 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. 13-29

30. 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 13-30

31. 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. 13-31