Information

Process data is called information. Information consist of data that have been retrieved, processed and used for informative purpose. Information is processed form of data that is used in decision making in an organization. Organization collect raw data from various sources and process them to form structured data is known as information.

According to Davis and Olson

Information is the data that has being processed into a form, that is
meaningful to recipient and is of real value incurrent or prospective action decisions. TYPE OF INFORMATION
Strategic policies and target Tactical Middle level management Lower level management operational

C.E.O, M.D Mgr. supervisor Forman F worker

Top level mgt.

Middle level know everything and send reports to top level mgt.

Explanation of diagram
Strategic information
It is used by top management for long term planning. For e.g. for adopting new technology to increase the production in the organization.

Tactical information
It is vital for making control related decision in an organization. The information is generally obtained from the daily activity record of the organization.

Operational information
It is vital for making the decision required on day to day basis and used for making day to day planning.

Quality of information or features of information

Timeliness According to B.K chatterjee

information delayed is information denied It refers to the prespecified period of time that the information takes to reach the intended recipients. Accuracy According to John G Burch Information that is free from mistakes and free from mistakes and errors is clear and accurately reflects the meaning of data on which it is based , the information is said to be accurate if it provides the required facts and figures. Relevance A piece of information is said to be relevant, if it is able to solve the problem of what, when and why it is needed. Adequacy The lack of required information can lead to incorrect decision. Therefore the information required by an organization for taking the managerial decision should be adequate. Completeness An information is said to be complete if it covers all the details required for taking managerial decisions in an organization. Explicitness (we get to know the relevance) it depicts the meaning and purpose of the report without any further scrutiny of the information.

Classification of information
Action versus non-action information The information which induce action information is called an action information. For e.g. No stock information Reoccurring versus non-reoccurring information The information which communicate the status of the situation is called non-reoccurring information. Internal verses external information The information generated through the internal sources of the organization is termed as internal information. The information generated through the external sources. For e.g. through govt. reports, industry survey is called external information.

Type of information that we need at different level

External low Top mgt. Sources of information Structured information high

Middle mgt

Operational management
internal Type of information

Value of information in decision making

The decision theory suggest the method of solving problems of decision making Certainty Risk Uncertainty

Certainty In the decision making situation the decision maker have the full knowledge about the alternatives and outcomes. This is only possible in case of perfect information. The value of additional information making the existing information perfect. Value of perfect information (VPI) =(v2-v1)- (c2-c1) V1 and c1 = values and cost of the of the set of observations V2 and c2 = Value and cost of other set of observation. If VPI is high then it is beneficial to serve the additional information need. A manager is faced with the problem of decision making under uncertainty or risk conditions. In these cases a decision maker select a decision on the basis of available information. If the new information cause a change in the decision, then the value of new information is difference between the outcome of the old decision and that of the new decision , less than cost of obtaining the new observation. In MIS, the value of information is used to find out the benefits of perfect information. If the value is significantly high the system should provide it. For the higher level, decision making mainly depends on strategic and tactical information, we need additional information with the help of executive information system