Podcast
Questions and Answers
Which of the following best describes the relationship between data and information?
Which of the following best describes the relationship between data and information?
- Data is processed to produce information, which is then used for decision-making. (correct)
- Information is raw and unprocessed, while data is refined and ready for use.
- Data is solely used for arithmetic operations, while information is used for sorting and filtering.
- Data and information are interchangeable terms with no distinction.
A retail store owner uses a list of items out of stock to reorder those items. What type of information is this?
A retail store owner uses a list of items out of stock to reorder those items. What type of information is this?
- Operational (correct)
- Tactical
- Strategic
- Statutory
Which of the following is an example of tactical information used by a business?
Which of the following is an example of tactical information used by a business?
- Deciding on credit limits for customers based on their payment history. (correct)
- Deciding whether to open a new branch location.
- Generating a report on daily sales transactions.
- Creating the company's annual financial report for tax purposes.
Why is it important for organizations to transition to computer-based information systems as they grow?
Why is it important for organizations to transition to computer-based information systems as they grow?
Which level of management is most likely to require operational information?
Which level of management is most likely to require operational information?
What is the primary goal of Human Resource Management regarding information?
What is the primary goal of Human Resource Management regarding information?
A manufacturing company is considering adopting a new production technology. What type of information would be needed for this decision?
A manufacturing company is considering adopting a new production technology. What type of information would be needed for this decision?
Which quality of information is most compromised when vital information is suppressed to conceal individual inefficiencies?
Which quality of information is most compromised when vital information is suppressed to conceal individual inefficiencies?
What is the goal of materials management in supply chain operations?
What is the goal of materials management in supply chain operations?
Under which function would 'determining methods of financing' most likely be categorized?
Under which function would 'determining methods of financing' most likely be categorized?
A sales manager analyzes sales data by region to identify underperforming areas. What type of information is the sales manager using?
A sales manager analyzes sales data by region to identify underperforming areas. What type of information is the sales manager using?
In Research, Design, and Development (RD&D), what's a strategic information requirement?
In Research, Design, and Development (RD&D), what's a strategic information requirement?
What is a key attribute of 'up to date' information?
What is a key attribute of 'up to date' information?
Why is it important to present information in a graphical format?
Why is it important to present information in a graphical format?
A company prepares its annual profit and loss statement to submit to the tax authorities. What kind of information is this?
A company prepares its annual profit and loss statement to submit to the tax authorities. What kind of information is this?
Which of the following is an example of non-arithmetic data processing?
Which of the following is an example of non-arithmetic data processing?
What is a potential consequence of providing managers with a large volume of irrelevant information?
What is a potential consequence of providing managers with a large volume of irrelevant information?
What is the relationship between the level of management and the structure of the information they receive?
What is the relationship between the level of management and the structure of the information they receive?
Why is reliance on 'thumb rules and hunches' less effective in modern organizations?
Why is reliance on 'thumb rules and hunches' less effective in modern organizations?
Which of the following factors has contributed to the increased need for computer-based information systems?
Which of the following factors has contributed to the increased need for computer-based information systems?
Flashcards
What is Data?
What is Data?
Raw, unorganized facts and figures.
What is Information?
What is Information?
Processed data that's meaningful and useful for decision-making.
What is Strategic Information?
What is Strategic Information?
Information needed for long-term decisions and business direction.
What is Tactical Information?
What is Tactical Information?
Signup and view all the flashcards
What is Operational Information?
What is Operational Information?
Signup and view all the flashcards
What is Statutory Information?
What is Statutory Information?
Signup and view all the flashcards
What is Accurate Information
What is Accurate Information
Signup and view all the flashcards
What is Complete Information
What is Complete Information
Signup and view all the flashcards
What is Trustworthy Information?
What is Trustworthy Information?
Signup and view all the flashcards
What is Timely Information?
What is Timely Information?
Signup and view all the flashcards
What is Up-to-date Information?
What is Up-to-date Information?
Signup and view all the flashcards
What is Non-numeric data processing?
What is Non-numeric data processing?
Signup and view all the flashcards
Study Notes
- Data is raw material; information is processed data used for actions or understanding. Collecting data costs money, so it's important to gather it carefully and avoid redundancy.
- Information from one process can become data for another.
- Mere facts and figures don't automatically enable decisions or actions.
- Data is processed in various ways (arithmetic and non-numeric) to obtain different types of information.
Types of Information
- Strategic information is needed for long-range planning and directing the business.
- It is less structured and often obtained by processing archival data
- Tactical information is used for short-range decisions to run the business efficiently.
- Tactical information requires specific data processing and is easily obtainable from day-to-day routine data.
- Operational information is for day-to-day business operations.
- Operational information is obtained via simple clerical processing of data.
- Statutory information consists of reports that are compulsory by law to submit.
Why Computer-Based Information Systems
- Computer-based processing enables data to be processed in multiple ways to analyze organizational performance from different viewpoints.
- Increased data volume and the importance of timely information make computer-based processing essential.
Management Structure
- A store owner performs functions like purchaser, storekeeper, accountant, and salesman. delegation becomes essential as the business grows.
- Middle-level managers oversee each function.
- Middle-level managers report to the Chief Executive(overall in charge).
- Line managers are responsible for day-to-day operations.
- The management structure forms a pyramid, with the Chief Executive at the top, followed by middle-level and line managers.
- Chief Executive need strategic information for policy matters.
- Middle-level managers use tactical information for their function.
- Line managers require operational information for daily duties.
- Higher managers receive more summarized and less structured data.
Management and Information Requirements
- Effective management relies on specific strategic, tactical, and operational information for each function.
Human Resource Management
- Goal: Optimize the use of available human resources.
- Strategic Information: long range requirements, policies on wages, incentives, resource development, training, personnel welfare etc.
- Tactical Information: performance appraisal, demographic makeup and its influence on retirement, productivity, morale etc.
- Operational Information: routine assessment, skills inventory, attendance records, loans/advances etc.
Production Management
- Goal: Maximize goods production by optimally deploying resources.
- Strategic Information: yearly production quotas, replacement policies, new technologies etc.
- Tactical Information: areas of high cost, identifying bottlenecks, schedules based on available resources etc.
- Operational Information: monitoring assemblies, shortage detection, scheduling production dynamically, maintenance schedules etc.
Materials Management
- Goal: Ensure readily available materials and optimal stock levels.
- Strategic Information: vendor development, determining inventory levels, material proportions etc.
- Tactical Information: vendor performance, impact of material cost, reorder levels, high value inventory control.
- Operational Information: issued vs received material, item lists.
Finance Management
- Goal: Ensure financial viability, enforce discipline, plan and monitor the budget.
- Strategic Information: methods of financing, pricing policies, tax planning.
- Tactical Information: variance in expenses, impacts of taxation on costing.
- Operational Information: financial reports, budget status to all managers, tax returns etc.
Marketing Management
- Goal: Maximize sales and ensure customer satisfaction.
- Strategic Information: new markets, competitor analysis, forecasts etc.
- Tactical Information: advertising techniques, surveys, explorations.
- Operational Information: sales analysis.
Research, Design and Development Management
- Goal: Improve products/processes.
- Strategic Information: which products to develop, tech collaboration.
- Tactical Information: setting goals for projects and access progress.
Qualities of Information
- Accurate: correct input data and processing rules
- Complete: inclusion of all data
- Trustworthy: not hiding relevant information
- Timely: delivered when needed
- Up to date: including data to the time of processing
- Relevant: tailored to the user's needs
- Brief: summarized information for quick action
- Significance understandable: presented understandably
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
