The Role Of Information Management In Organization

Published Date: 02 Nov 2017

The information’s concept has become much used in organizational life. It seems to refer to what is processed and provided by computers and other electronic devices. While it is true that most organizations actually count on information technology to sustain many of their information processes, there is also a large amount of data and knowledge that is not hold by or represented in these computer-based information systems. In particular, managers must take decisions and choices about further actions. Invariably, the decisions made rely on imperfect information. In this kind of situations managers must use their accumulated knowledge and expertise to correctly evaluate and interpret imperfect information in picking the best course of action in the light of objectives.

This means that information management should be considered as the conscious process by which information is collected and used to help in decision making at all levels of an organization. First of all, true information management represents a conscious process. Information management does not suddenly happen; it has to be thought about. A second point is that the aim of information management is to take part in decision making. The third point is that the information management is for the advantage of all levels of a company (Hinton, 2006).

Unfortunately, much of the information that a company gets is nuance and innuendo, more of a potential than an actually prescription for action. To become strategic, data must galvanize into knowledge that can direct an action. This transfiguration of information into knowledge is the main purpose of information management. As rhetoric, information management is often equalized with management of information technology, or the management information policies and standards or the management resources. The aim of information management is to harness the information resources and information capabilities of the company in order to allow the organization to learn and adapt.

In the learning organization, managers have a very important and remarkable role. As decision makers, they have the authority and responsibility to operate on the available information. As leaders, they establish examples and encourage a culture of information sharing and collaboration. As strategists, they guarantee that information policies are aligned with the organizations goal. Unfortunately, providing relevant, actionable information to managers has demonstrated to be an amazing task and managers are generally less than pleased with the information they received from already existing information systems and services (Choo, 2008).

The manager’s most important role is to receive and communicate the information because information is vital to decision-making. The manager has the following roles:

a) Monitor. Managers are constantly searching information that may be advantageously used for business. The achievement of this role directs to the collecting of information about other businesses and the environment. This could be done by reading newspapers and magazines and, also, by talking to different people in order to establish the public’s opinion towards the business and to find out if public taste has changed over time or what other competitors are doing.

b) Disseminator. The manager sends important information to subordinates and others which otherwise not be accessible to them.

c) Spokesman. The manager operates as spokesman for the business or his department when he notifies higher levels of management or public about events and developments (Kroon, 1995).

Operational management level is linked with information at detailed level while the summarization or abstract presentation of information is need it when the target audience is middle management or top management. The degree and extent of summarization, however, is established by culture of the business company. In some of them, the top management would like information with very little summarization while in other organization operating in similar market environment, the degree summarization would be significant.

Despite the phases of the planning process, information support is asked. This information support is delivered through management information system. The information content, the information support, degree or accuracy and information update frequency could vary depending on the situation of planning process. The information for supplying the information support is achieved from sources which are internal as well as external to the business company. Information achieved from internal sources is usually sent it through reports as well as on-line access of the databases that are normally used in the business company. Information gained through external sources cover published statistics, trade database, abstracts form technical publications, reports of specialized bodies, results of market research project, and published annual reports.

The aim of management information systems in planning is also seen through different activities linked to evaluation of alternatives and selection of the optimum alternative (Sing, 2009).

2] Appraise how an organization plants its information systems.

Companies, no matter their types, use information systems for cutting costs and increasing profits. An organization usually uses money, people, machines, materials, and other different equipment, data, decisions and information.

The use of information systems to add value to the organization is strongly influenced by organizational structure, culture and change.

Because information systems are so relevant, businesses need to make sure that improvement or completely new systems reduce costs, improve service, increases profits, or gain a competitive advantage.

A more traditional view of information systems holds that companies utilize them to control and monitor processes and to guarantee both effectiveness and efficiency.

A more contemporary perspective, however, sustains that information systems are often so closely involved that they become part of the process itself. From this point of view, the information system has an integral attribution in the process, whether providing input, aiding product transformation or producing output. The information system itself represents an integral part of this process; it does not just advise the process externally, but works as part of the process to turn raw data into a product.

An organization’s structure relies on its perspectives and approach to management and can influence how it views and uses information systems. Organizational structure can have a direct effect on the company information system.

After a basic level of productivity is measured, an information system can monitor and can compare it over time to see whether productivity is increasing or not. Then, it can take corrective decision if productivity drops below certain levels (Stair et. al., 2012).

Unfortunately, organization performance in investing in information systems is poor.

Unfortunately, justifying investment in information systems is not as easy as it seems to be. Compare to other investment decisions the organization makes, such as plant, machinery or land, information systems projects seems to be more problematic to evaluate, as the costs and benefits are often more difficult to identify and quantify. There are a couple of techniques that might take part in evaluation, but the evidence shows that lots of organizations do not employ them and where they do, they are often used inadequate.

The benefit realization approach is a typical life cycle perspective. This involves that full account is taken of the whole information systems life cycle.

Moreover, the life cycle perspective is important to take full account of the value consequences of information systems (Grant, 2010).

The typical management information systems that will be in operation in any company can be distinguished in different ways.

A strategic decision by the production function of the management is, as an example, determining about the location of a new plant. Such a decision involves much of the internal information produced by the tactical systems created to analyze the production bottleneck which is internal to the organization. But, on the other hand a long term decision as location of a new plant is likely to be affected far more by environmental information, such as changing market, deregulation and tax incentive for backward area, changing fiscal and governmental policy, changing technology. Obviously, strategic information systems should have a mechanism for assimilating and scanning environmental information which usually affects strategic decisions in a systematic way.

In terms of decision related to the welfare policy of an organization is a strategic decision that must be made by personnel management. The decision will be strongly affected by internal information about the compensation package, the size and quality of the staff, but the strategic decision will be established by the vision for the company’s future as seen by the top management as well as the labor market conditions of the environment. Being a long term decision, with a major effect on the corporate health of the organization, this strategic decision must be sustained by a balanced mix of both external and internal information.

The entire objective systems development is to reach business perspective, not technical goals, by delivering the right information to the right individual at the right time. The impact a certain system has a company’s capacity to gain its goals, determines the real value of that systems to the organization. As an example a manufacturing plant, might lead that minimizing the total cost of owning and operating its equipment is crucial to meet production and profit goals (Sadagopan, 2004).