Interesting facts about Information

The more accurate the information, the higher its quality and the more securely managers can rely on it when making decisions. In general, however, the cost of obtaining information increases as the quality desired becomes higher. If information of a higher quality does not add materially to a manager’s decision making capability, it is not worth the added cost. The Director of Admissions faces this cost benefit trade off when he or she considers the values of knowing not only where you received admissions offers, but also what campuses you visited while looking at colleges.

Information Timeliness: For effective control, corrective action must be applied before there has been too great a deviation from the plan or standard. Thus, the information provided by an information system must be available to the right person at the right time for the appropriate action to betaken. Professors acting as advisers cannot do their jobs if your course records are two semesters behind what you have actually completed.

Information quantity: Managers can hardly make accurate and timely decisions without sufficient information. However, managers are often inundated with irrelevant and useless information. If they receive more information that they can productively use, they may overlook information on serious problems. Every student’s class attendance records would probably overload the Registrar’s records for no good reason.

Information Relevance: similarly, the information that managers receive must have relevance to their responsibility and tasks. The personnel manager probably does not need to know inventory levels – and the manager in charge of reordering inventory does not need to know about the status of staff members in other departments. Similarly, the librarian does not need to know how many students apply each year for admission (although he or she might be interested in that information).

Focus on Customer satisfaction:

At Banc One, identifying what customers wanted became a prerequisite to effective quality assurance as customer satisfaction became the cornerstone of the business. In 1985 Banc One, based in Columbus, Ohio, began a formal quality improvement effort in its customer service and processing areas. The bank found that the quality of service customers received provided enough of a difference in customer’s minds to determine where they bank.

Banc One adopted an eight step approach to assure quality service to its customers: (1) survey customers about such factors as accuracy of service, completeness of service timeliness of service, and attitude and behavior of service providers; (2) translate customer requirements into quality measures; (3) implement these measures by having management communicate and explain their importance and the reasons for their existence to ensure employee understanding; (4) motivate and train managers with the goal of having every manager be a customer champion, adhering absolutely to the quality standards and procedures developed from ongoing communications with customers; (5) motivate and train employee; (6) create teams of employees to develop improvement projects; (7) measure results by comparing expectations with actual results and take the necessary steps to assure future performance and (8) reward performance and recognizing employees through such means as “We Care” awards for employees who go above and beyond the call of duty and “Best of the Best” award to the branch with the best service record.

The emphasis on quality had led to more than $6 million in savings and revenue enhancement per year by the program’s fourth year, and satisfaction rates among customers ranged from very satisfied to 75-80 percent satisfied.

Management Information systems:

We will define an MIS as a formal method of making available to management the accurate and timely information necessary to facilitate the decision making process and enable the organization’s planning, control, and operational functions to be carried out effectively. The system provides information about the past. Present and projected future and about relevant events inside and outside the organization.

Organizations have always had some kind of management information system, even if it was not recognized as such. In the past, these systems were highly informal in setup and utilization. When registrar office staff kept transcripts on handwritten charts, they were using an information system. Not until the advent of computers, with their ability to process and condense large quantities of data, did the design of management information systems become a formal process and a field of study.