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INFORMATION AND ITS FUNCTION



What is Information?

The concept of information in an organizational sense is more complex and difficult than the frequent use of this common word would suggest. Information is data that have been interpreted and understood by the recipient of the message. It will be noted that the user not just the sender is involved in the transformation of data into information. There is a process of thought and understanding involved and it follows that a given message can have different meanings to different people. It also follows that data which have been analyzed, summarized or processed in some other fashion to produce a message or report which is conventionally deemed to be ‘management information’ only becomes information if it is understood by the recipient. It is the user who determines whether a report contains information or just processed data. Accordingly, it is vital for the producers of reports and messages of all types to be aware of the user’s requirements, education, position in the organization, familiarity (or otherwise) with language and numeracy and the context in which the message will be used in order to increase the likelihood of information being derived from the message.
Information is the knowledge and understanding that is usable by the recipient. It reduces uncertainty and has surprise value. It must tell the recipient something not already known which could not be predicted. It a message or report does not have these attributes, as far as the recipient is concerned, it contains merely data not information. This is a crucial point not always fully appreciated by information specialists. The point has been well put by Finlay. Without an efficient means of filtering and aggregating data, a manager could be …data rich yet information poor.

THE FUNCTION PERFORMED BY INFORMATION

In addition to the general function of improving knowledge, information assists management in several ways including:
·         The reduction of uncertainty: uncertainty exists where there is less than perfect knowledge. Rarely, if ever, is there perfect knowledge but relevant information helps to reduce the unknown. This is particularly relevant in planning and decision making.
·         As an aid to monitoring and control: By providing information about performance and the extent of deviations from planned levels of performance, management are better able to control operation.
·         As a means of communication: managers need to know about developments, plans, forecasts, impending changes and so on.
·         As a memory supplement: by having historical information about performance, transaction results of past actions and decisions available for reference, personal memories are supplemented.
·         As an aid to simplification by reducing uncertainty and enhancing understanding, problems and situations are simplified and become more manageable.


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