Communication and information system in management

COMMUNICATION AND INFORMATION SYSTEMS COMMUNICATION It is obvious fact that communication is such vital part of each of us that it contributes heavily to the success or failure of every human activity such a statement is also true in formal organizations in which people assembly to achieve their common objectives through their coordinated efforts. Individuals in the organizations may perform different activities but their functionally interrelated. The working and maintenance of these relationships is possible only through communication which provides for exchange of information and sharing of ideas. Communication thus may be regarded as basic to the functioning of the organization. In its absence, the organization would cease to exist. THE CONCEPT OF COMMUNICATION The word communication has been derived from the Latin word ‘communis’ which mean common. However besides commonality, communication involves the concept of transfer, meaning and information. Therefore, communication maybe defined as an exchange of facts, ideas, opinions or emotions to create mutual understanding. Communication is the sum-total of directly or indirectly, consciously or unconsciously transmitted words attitudes, gestures actions of feelings Kintz and o’Donnel ‘communication is an intercourse by words, letters, symbols or messages and is a way that one organization member shares meaning and understanding with another. Thus, communication is the sum of all the things one person does in order to create understanding in the mind of others. It is the systematic and continuous process of making one’s self understood by others and by understanding others. From management point of view communication is the process through which two or more persons come to exchange ideas and understanding among themselves. CHARACTERISTICS OF COMMUNICATION 1. Communication is a pervasive function. It is required n all functions of management. Planning requires communication of information. On the organization communication is needed for transfer of information about the tasks, authority and responsibility. Selection training, appraisal staffing require interchange of facts and ideas of employees. Thus communication is vital to all managerial functions 2. Communication is a continuous process. Stop of communication means an end to human activity. Just as regular circulation of blood is essential for human life. On-going circulation of information and ideas is essential for organizational activity. Organization cannot exist without communication. 3. The basic purpose of communication is to create mutual understanding and cooperative human relationships. It is the responsibility of management to develop understanding with the employees. 4. Communication is a two- way process. Communication is not complete unless the message has been correctly understood by receiver and his response (feedback) becomes known to the sender. Communication is the transmission, correct interpretation and understanding of the message. ROLE AND SIGNIFICANCE OF COMMUNICATION Communication is essential in all types of organizations. It is the means by which behavior is modified, change is affected and goal is achieved. Sound communication offers the following benefits 1. Planning and decision Communication provides to managers the information and ideas necessary for sound planning. The widest possible participation in planning is a precondition for getting the task done. This can be effectively secured only through the media of communication. Communication enables a manager to diagnose the problem and to gather information for making sound decisions. 2. Implementations of plan Plans and decisions must be effectively conveyed to those who can translate them into action. Effective communication is the sine qua non for quick and successfully implementation of the management decisions. Managers issue specific orders and instructions through communication. They inform their employees about the goals, policies and procedures of the organization as well as bout rational of the job. Communication is the artery through which decisions and instructions flow downward. In order to get maximum results from people, correct and detailed instructions must be given at the right time. Similarity, the difficulties experienced by workers should be conveyed to the managers so that they can amend or issue new instructions. Without rich flow of communication from his boss, the subordinate cannot judge which direction he should be going and how well he is doing. The subordinate know his responsibility and regulates his work from the communication sent by his boss. 3. Motivation and morale Managers use communication to secure acceptance of their ideas and orders. They can improve the job satisfaction of employees by providing feedback information on their performance. Sound communication facilitates delegation and decentralization. Communication plays a vital role in building up high morale in their organization. As an influence process, communication is an essential part of guidance, motivation and leadership functions of management. 4. Human relations In order to secure maximum productivity with the minimum cost, there must be perfect cooperation and trust among management and labour. Sound communication enables workers to express their grievances which reduce tension and industrial unrest. Most of the conflicts in industry arise due to the misunderstood motives and ignorance of facts. Proper communication helps to minimize friction and to maximize mutual understanding and cooperation. Management can sell its ideas and reduce resistance to change through effective communication. Communication inspires change which is the moving symbol of living organizations. 5. Training and development Communication is vital for the orientation and training of both workers and executives. In modern industry training and development of human resources is an ongoing process. The degree of learning depend the content of the training programme and on how effectively the knowledge employee remains ignorant. 6. Coordination Communication is a bridge of meaning between people. It ties people and structure together. It links different departments and divisions of the enterprise together. Need for integrating and unifying human efforts has increased due to growing specialization. Communication helps to create team work and integration and it serves as a cementing force. Therefore good communications are essential to coordination. There are necessary upward, downward and sideways through all levels of authority and a device for the transmission interpretation and adoption of policies for the sharing knowledge and information and for more subtle needs for good morale and mutual understanding. 7. Public relation An organization comes into contact with several social groups e.g. customers, investors, trade unions, government and the local community. It must maintain cordial relations with these groups in order to develop a favorable image. It must continuously strive to convince the public that its actions are in the interest of society. Otherwise the realty becomes whatever customers’, employees and government officials want to believe. COMMUNICATION PROCESS Communication has been deemed as a process. The term process refers to the identifiable flow of the information through interrelated stages analysis directed towards the achievements of an objective. In the case of social actions, the concept of process is dynamic rather than static n which vents and relationships are seen as dynamic, continuous and flexible. A dynamic interaction both affecting and being affected by many variables. There are four elements in the process i. Action ii A continuous change in time iii. Advancement or progress over time iv. Goal or result MODELS USED TO UNDERSTAND COMMUNICATION PROCESS There are models which are used to understand communication process. These are; 1. Shannon-weave model 2. Berlow models 3. Transactional process mode SHANON-WEAVER MODEL Shannon- weaver model is based on information theory. Information theory is a mechanical approach of communication. Information theory, deals with information devoid of meaning where by the information theorists are not interested in what is communicated both accurately and correctly. The basic information theory models involves on information source which selects a desired message out of all the possible messages that it can select transmitter which changes the message into a signal which can be sent over some communication. Channel to a receiver, a destination to whom the message was originally intended and finally a noise source which can introduce extraneous information into the signal. This model does not include feedback as the same process will take place for feedback and receiver may become sender of message. According to this model, communication problem can arise at any one of the three levels BERLO MODEL Berlo model of communication is known as dynamic process model. This is the first widely accepted model which presented communication as dynamic, interactive process. Berlo has countered the linear step-by- step information approach with the following ideas. If we accept the concept of process, we view events and relationships as a dynamic on-going ever changing continuous. When we label something as a process, we also mean that it does not have a beginning an end or a fixed sequence of events. It is not static at rest, it is moving. The ingredients within a process interact, each affects all other. Based on these ideas, Berlo has presented the communication process as follows. Barlo, has treated communication process as an on-going one which involves feedback as well as though in his model has not mentioned is specifically. TRANSACTIONAL PROCESS MODEL Contemporary theory research has extended the Barlow dynamic process and communication theorists have seen communication as a transactional process. The prefix trans-meaning mutually and reciprocally, is stressed instead of inter- meaning between. These theorists state that ‘all persons are engaged in sending (encoding) and receiving (decoding) messages simultaneously. Each person is constantly sharing the encoding and decoding process, and each person is affecting the order. Thus, there is continuous process of feedback in the communication process. Prasad 769 26.3. DIAGRAM Transactional process model of communication is based on social approach to management. The reciprocal determinism of social learning is very similar to transactional approach of communication. From management point of view, such an approach is much more accurate and useful way of viewing communication than the more limiting information flow perspective of communication. ELEMENTS OF COMMUNICATION PROCESS Communication, being a process, must have some elements to complete the process. Various elements of communication have been presented in different models of communication. Elements of communication process are sender, message, encoding, channel, receiver, decoding and feedback. 1. Sender Sender of the message is the person who contacts other persons with the objectives of passing message. An organizational context, the sender may be a superior, a subordinate a peer or any other person. The organizational position of the sender determines the direction of communication in the organization i.e. downward, upward or horizontal communication. 2. Message Message is the subject matter of the communication which is intended to be passed to the receiver from the sender. Message may be in the form of ideas, opinions, feelings, views, orders and suggestions etc 3. Encoding. Since the ideas, opinions, feelings, views, orders suggestions etc which are the subject matter of communication are abstract and intangible (the objects which cannot be heard, seen or touched) Their transmission requires the use of certain symbols such as words, pictures gestures and other body language The process of converting the message into meaningful symbols is known encoding. In this case, the term meaningful symbols are important because if the symbols are not meaningful, message cannot be understood by receiver correctly. 4. Channel Message converted into symbols is transmitted by the sender trough a channel like written words in the forms of letter or electronic mail, spoken words through personal contact in telephone depending on the situation of the parties- sender receiver 5. Receiver Receiver is the person to whom message is sent. Like the sender, the receiver may be a superior, a subordinate, a peer or any other person I organizational context 6. Decoding Decoding is just the reverse of encoding. In decoding, the receiver converts the communication symbols transmitted by the sender into message. Like encoding, decoding should also be meaningful so that the receiver understands the message n the sense which is intended by the sender 7. Feedback Feedback in communication is required to ensure that the receiver has received the message and understood it in the same sense is working properly. Feedback is treated as an energizing factor thereby changing the course of action in the communication process COMMUNICATON NETWORK In the organization context, a network is a structured fabric of the organization made up of systems of lines or channels which are interconnected. Communication network are these networks lines or channels used to pass information serially from one person to another. Organizational communication is really the flow of information through the network of interrelated human role relationships. Since within an organization, human beings are interrelated both formally and informally communication takes place to maintain these interrelationships. Thus organization communication network is made up of two types of channels which are interrelated and independent viz formal and informal. A message coming through the formal the channel is known as formal communication and that coming from trough informal channel is known as informal communication FORMAL CHANNEL The formal channel is the deliberately created, officially prescribed path for flow of communication between the various positions in the organization. It is a liberate attempt to regulate the flow organizational communication so as to make it orderly and thereby to ensure that information flows smoothly accurately and timely to the points to which s required. It is also intended to prescribe for filtering of the information to various points to ensure that information does not flow unnecessarily thereby causing the problem overload. The official prescribed communication network may be designed on the basis of a single channel or multiple channels. There are three forms of formal communication as it flows in different directions i.e. downward, upward, horizontal and diagonal. Downward and upward are two types of vertical communication. DOWNWARD COMMUNICATION Downward communication refers to the flow of information from a superior high level) to a subordinate (lower level) to issue orders and instructions to employees. An important part of downward communication is information about the objectives, policies and programmes of the enterprise. Regular of provision of such information to employees helps to create a sense of belonging, a feeling of loyalty to the organization and on active interest in the work. Employee’s handbook, organization manual house journal, annual reports, notices, memos and committee meetings are the main media of downward communication. The effectiveness of downward communication can be judged from the degree of improvements in general performance of employees. 2. UPWNWARD COMMUNICATION Upward communication refers to the flow of communication from lower levels [subordinates] to higher levels [superiors] of authority. Such communication enables the management to know what is happening throughout the organization. An executive may know the outcome of his decisions and instructions from reliable information from the employees. A manager cannot exercise effective control without such information and he cannot do a complete job of managing without controlling. Therefore every manager should provide adequate opportunities and channels to his subordinates for upward communication. Subordinates know many things that a superior need to know but do not know. IT may be a potential problem, creative ideas, a feeling of personal satisfaction. These things influence the motivation and performance of employees but they are often reluctant to talk freely and frankly to their superiors. Upward communication performs the following functions. 1. It serves as a measurement of effectiveness of downward communication. 2. It provides management with necessary information for decision making. 3. It relieves employees from pressure and frustrations of work situations. 4. It gives the employees of participation in management. ORIZONTAL COMMUNICATION Horizontal or lateral communication implies the flow of information, ideas and opinions among positions at the same level of authority. Eg meeting between production manager and sales manager is horizontal communication. Such communication is quite common between line executives and staff specialists Free and frank communication between peers helps to improve mutual understand, coordination and team work among different departments and divisions of the organization. It helps to pool lower-level delegations hereby keeping the superior level free from too many routine references. DIFFERENCES BETWEEN FORMAL AND INFORMAL COMMUNICATION FORMAL COMMUNICATIONINFORMAL COMMUNICATION1.It is based on formal organizationIt emerges out of social interactions2.Channels of communication are prescribedChannels of communication depend on individuals3.It is rigid as deviations are not allowedIt is quite flexible because nothing is prescribed4Speed of message travel is slow because of formalizationMessage travel faster5Chances of message distortion are lowMessage are often distorted6It is treated a authenticIt is not authentic even the message is correct DIAGNOL COMMUNICATION This means that communication between people who are neither in the same department nor on the same level of the organization structure. It cut across departmental lines. Diagonal communication is the least used channel of communication. It can takes place, when members cannot communicate effectively through other channels. Eg diagonal communication take place when sales representative submit their report directly to the cost and works accountant. Such communication helps to save time and to speed up action. But it may violate the principle of unity of command. INFORMAL CHANNEL OR GRAPEVINE The informal channel of communication also known as ‘grapevine’ is the result of not official action but of the operation of social forces at work place. It takes place in informal and inter personal contacts among employees. Grapevine applies to all informal communication. While formal communication exists to meet the utilitarian needs of the organization. Informal communication is the method which people carry on social-non programmed activities within the formal boundaries of the system. It is thus, exists outside the official network, though continuously interacting with it. Grapevine is more active 1. There is high organizational excitement such as policy changes like automation, computerization etc or person changes 2. The information is new rather stale 3. People are physically located close enough to communicate with one another 4. People cluster in cliques/ groups along the grapevine e.g. they have trust among themselves Informal communication exists outside the official network but continually interacts with the formal communication. A grapevine is structureless and information passes through it in all directions. ADVANTAGES OF INFORMAL COMMUNICATION Informal communication offers several advantages 1. It is more flexible and much faster than the formal communication 2. It much free, therefore, less distorted 3. Being informal and inter-personal, it carries ready conviction and acceptance 4. It fills in gaps in the formal communication by providing information not openly available to all. 5. Informal communication fulfils the need of employees and serves as a source of knowledge concerning the feelings of employees 6. Informal communication tends to carry in accurate, distorted information. 7. Informal communication contains rumours and gossips. As grapevine has no definite origin and direction, nobody can be held responsible for it. A manager cannot eliminate the grapevine. Therefore, he should learn to use it for the benefit of the organization. From the grapevine a manager can find out what is subordinates are thinking. Informal communications are inevitable and they should be fully used by management to serve the objectives of the organization. This can be done in two ways 1. Management should make sure that informal groups are informed about all concerned organizational matters in a systematic way. 2. Management should encourage the informal groups and disseminate information among their members. RUMOUR Rumour is grapevine information which is communicated without any standard of evidence being present. It is the injudicious and untrue part of the grapevine, since in most cases, it is incorrect information. It is presumed to be the most undesirable feature of grapevine. Rumour is a product of interest and ambiguity in a situation. Since perception of interest and ambiguity differs among individuals, rumour tends to change from person to person. Depending upon interests, each person substracts or adds something to the original message through the process of elaboration and assimilation. DEALING WITH RUMOUR Since rumour is generally incorrect, a major outbreak of it can be a divest epidemic that sweeps through an organization. Therefore rumour should be dealt with family and consistently. However, while dealing with rumour it is not wise to strike at the whole grapevine because it happens to be the agent that carries rumour. Moreover, certain rumours are harmless and die out as the time passes. Dealing with such rumours may not b worthwhile. In dealing with harmful rumours the organization can adopt the following practices. 1. Reduction of causes The best way to control rumour is to get its causes rather than trying to stop it after it has already started. This is a preventive approach of handling rumour. Possibility of spreading of rumours is reduced when people feel reasonable secure understand the things that matter to them. In such situations ambiguity in the situation is reduced and need for communication through Informal channel is reduced. When people are emotionally upset or inadequately informed about their environments, they are likely to be rumour-mongers. The management can create the situation under which possibility of raising rumours is reduced 2. Listening to rumour Regardless of the importance of rumour it should be listened to carefully. Even though it may be not true, usually it carries the message about the employees’ feelings on the subject matter of rumour. In this way the management can know where the ambiguity prevails and what actions can be taken to clear the ambiguity 3. Providing facts. As soon as the lumour, particularly when it is harmful, starts the management can weaken it by releasing the facts related to the subject matter of rumour. In such acase the ambiguity is reduced and truth tends to prevail. Time factor is very important is very important in dealing with such rumour. The action should be taken the moment rumour starts because once the general theme of a rumour is known and accepted; employees distort future happenings to conform the rumour. 4. Use the reliable sources The communication of facts is more effective if it comes from a source that employees think is in position to know the true facts. The source also should be a person who has a dependable communication record. Informal leaders also should be contacted to communicate facts. If need be, management can confirm the facts in writing without referring to the rumour. 5. Use of trade unions Often rumours arise in mind the minds of employees about the management practices concerning the employees in particular and the origination in general. Such rumours may be quite harmful if management-employees relation is not good. In such situations, the management can take the help of employees- leaders to refute rumours as the employees tend to put more trust on their leaders as compared to management so for as communication is concerned. BARRIERS IN COMMUNICATION The problem of communication arises because there are various obstacles which may be entirely prevent a communication filter part of it out, or give it correct meaning. These obstacles are known as communication barriers. These barriers may operate in organizational communication as well as in non organizational communication. Different barriers of communication may be grouped as 1. Semantic barriers 2. Emotional or psychological barriers 3. Organizational barriers 4. Personal barriers Some of these barriers operate in all types of communication while others may be more relevant for organizational communication SEMANTIC BARRIERS Semantic is a science of meaning. All communication are symbolic i.e that use symbols (wards, pictures, actions etc) that suggest certain meanings. Semantic barriers arise from limitations in the symbols with which we communicate. 1. Symbols with different meanings. Communication symbols usually have a variety of meanings and we have chosen one meaning from many. In verbal communication a particular word may have variety of meanings. Similarly no-verbal symbols may also convey different meanings to different persons. In such situation, often there is a possibility that the receiver of the symbols may attach quite different meanings as compared to intend by the sender and common breaks down. 2. Badly expressed Lack of clarity and precision in a message makes it badly expressed. Poorly chosen and empty words and phrases, careless omission, lack of coherence, bad organization of ideas, awkward sentence structure, inadequate vocabulary, platitudes, numbering, repetition, jargons, failure to clarify implications are some common faults found in this case 3. Faulty translations. Every manager receives various types of communication from superiors, peers and subordinates and he must translate information destined for subordinates, peers and superiors into language suitable for each. Hence the message has to be put into wards appropriate to the framework in which the receiver operates or it must be accompanied by an interpretation which will be understood by the receiver. This needs a high level of linguistic capacity. Approximate understanding of words and the consequent faulty translations lead to impaired efficiency and heavy costs. 4. Unclerified assumptions There are certain communicated assumptions which underlie practically all meanings. Though a message appear to be specific, its underlying assumptions may not be clear to the receiver. 5. Specialist’s language It is often found that technical personnel and special groups tend to develop a special particular and technical language of their own. This increases their isolation from others and builds communication barrier. Whatever be the intention of this special language, it hinders their communication with persons not in their specialty because of the receiver’s ignorance of the type of language. EMOTIONAL OR PSYCHOLOGICAL BARRIERS Emotional or psychological factors are the prime barriers in interpersonal communication. The meaning ascribed to a message depends upon the emotional or psychological status of both the parties involved Some emotional barriers are as follows 1. Premature evaluation. Premature evaluation is the tendency of prematurely evaluating communications, rather than to keep an uncompromised position during the interchange. Such evaluation stops the transfer of information and begets in their sender a sense of futility. This barrier can be remedied by empathy, non-evaluative listening, where the communicate is listened to in a non-committal and unprejudiced way so that sagacious decision and action can flow. 2. Inattention. The preoccupied mind of a receiver and the resultant non-listening is one of the chronic psychological barriers. It is a common phenomenon that people simply fail to react to bulletins, notices, minutes and reports. 3. Loss by Transmission and poor retention. When communication passes through various levels in the organization, successive transmissions of the same message are decreasingly accurate. It has been found that in case of oral communication about 30% of the information is lost in each transmission. Even in case of written communication. Loss of meaning might occur as far as the appended interpretation, if any is concerned. Poor retention of the information is again malady. It has been found that employees retain about 50% of information only, where as supervisors retain about 60% of it. 4. Undue Reliance on the written word. Written word is no substitute for sound face-to-face relationships and employees cannot be persuaded to accept companies’ viewpoints and policies through ‘slick’ easy-to- read, well illustrated publications, unless there is a fair degree of mutual trust and confidence between the organization and its employees. Also a written communication might fail to explain the purpose of order, procedure, or directive. Written communication of ten tells what is to be done, but not why it should be done and it lacks the persuasive quality. More over a written communication can be above the level of the leadership and failure to ascertain the response to communication is also there. Hence written media must be considered as supplementary to productive face-to-face relationship 5. Distrust of communication It arises out of all-considered judgements illogical decisions of frequent countermanding of the original communication by the communicator. Repeated experience of this kind gradually conditions the receiver to delay action or act unenthusiastically, hence making the communication unsuccessful, though apparently it is complete 6. Failure to communicate It quite accepted that managers often fail to transmit the needed message. This might be because of laziness on the part of the communicator are assuming that everybody knows procrastination ‘hogging’ information or deliberately to embarrass. OGANISATION BARRIERS Organization being a deliberate creation for the attainment of certain specific objectives day-to-day happenings within it require being regulated in such a manner that they contribute to attain these objectives in the most efficient manner. As such, major organizational barriers may be as follows 1. Organizational policy The general organizational policy regarding communication acts as an overall guideline to everyone in the organizational regarding how s normally expected to behave in this matter. The policy might be in the form of explicit declaration in writing or as is very commonly the case, it has to be interpreted from the behavior of organizational members particularly people at the top. 2. Organizational rules and regulations organizational rules and regulations affect the flow of communication by prescribing the subject matters to be communicated and also the channel through which these are to be communicated. The rules may restrict the flow of certain messages and may leave many important ones. Communication through proper channel in a specific way prescribed by these rules delays it in and works against the willingness of persons to convey the message 3. Status relationship The placing of people in superior/ subordinate capacity in the formal organization structure also blocks the flow of communication and more particularly in upward direction. Greater the influence between hierarchical positions in terms of their status, greater would be the possibility of communication break down 4. Complexity in organization structure In an organization where there are number of managerial levels, communication gets delayed chances of communication getting distorted are more the number of filtering points is more. This is more true in case of upward communication because people generally do not like to pass up and adverse criticism either of themselves or other superiors 5. Organizational Facilities Organizational facilities provided for smooth, adequate, clear and timely flow of communication media such as meetings, conferences, complaint box, suggestion box, open door system, social and cultural gatherings etc. if these are not properly emphasized, generally people fail to make effective communication. PERSONAL BARRIERS 1. BARRIERS IN SUPERIOR The role of superiors in communication s very vital because their hierarchical relationships with subordinates. They can act as barriers as follows. 1. Attitude of superiors The attitude of superiors toward communication in general or in any particular direction affect the flow of messages in different directions e.g. if the attitude is unfavorable, there is greater possibility that messages would not flow adequately fro or to superiors 2. Fear of challenges to authority A person in the organization always tries to get a higher position and prestige to satisfy his needs. As such, managers in general try to withhold the information coming down the line or going up as frequent passing information may disclose their weakness 3. Insistence on proper channel The basic feature o superior exercising the authority is that they wish to remain in communication links and they do not like any type of by passing in communication. Communication through by passing may, sometimes by necessary but superiors treat this a starting of their authority and block the flow of communication 4. Lack of confidence n subordinates Superiors generally perceive, correct or otherwise that their subordinates are less competent and capable, they are not able to advise superiors or may not have some information coming upwards 5. Ignoring communication Sometimes superiors consciously and deliberately ignore the communication from their subordinates to maintain their importance. This works against the willingness of subordinates to communicate. 6. Lack of time Superiors feel, whether correct or otherwise that they were overburdened with the work and they have little time to talk to their subordinates 7. Lack of awareness. Employees at lower levels have number of communication needs. Managers think that they understand employees’ needs but their employees do not think so. The difference in perception tends to exist at each level there by making communication more difficult, particularly in downward communication. BARRIERS IN SUBORDINATES Two factors are more important in the case of subordinates and these are responsible for blocking communication in upward direction 1. Unwillingness to communicate Sometimes, subordinates do not communicate upward certain information because they are not willing to do so. Thus, if a subordinate feels that he is likely to be advisedly affected by a particular piece of information to his superior, he would not be willing to supply it. Information going up is utilized for control purposes and subordinates would not be willing to give any information to their superiors about any unfavorable happening and if its application is necessary, they would modify the information in such a way so as to protect their own interest 2. Lack of proper incentives Lack of motivation to communicate also refrain a subordinate to communicate upwards. The reward and punishment system of the organization is more responsible for this. Thus, if a novel suggestion by a subordinate does not evoke any attention from the organization, he would not convey it. INFORMATION SYSTEMS Information is a guide for control. In control process, managers use information to know the standards set against which control measures are taken actual performance and variance between standard and actual performance. Thus information is required at every step of control Therefore organizations have to design and use information systems that provide necessary information. Information is data that have been processed into a form that is meaningful to the recipients and is of value in current or prospective actions or decisions. The value of information is determined by the quality of decisions that is made. If a decision is made without any information and the presence of the information also results in the same decision, the information is of no value, to be value; information is received timely, is adequate for tile decision and is available in the form which is appropriate. Information system ensure timeliness, adequacy and appropriate from in providing information. Most of the large and medium organizations tend to use electronic computer –based information systems for supplying quality information on time. NEED FOR INFORMATION SYSTEM A well-integrated information system is a costly affair. This can be traced in the context of adoption of systems approach to management. This approach utilizes scientific analysis in complex organizations for i. developing and managing operating systems such as money flows, materials flows, personnel systems etc. ii. Designing information systems for decision making. The link between the two is obvious because the reason for designing information systems is to assist in decision making regarding the management of operating systems. When systems approach is applies to management process, it becomes quite complex because of existence of numerous sub- systems which are linked by information systems. Complexity of business organization system is referred to the heterogeneity and range of activities which are relevant for organization. Thus, the more heterogeneous and varied activities are, the higher is complexity. Because of environment pressure, this complexity cannot be avoided altogether but has to be managed effectively. Information systems try to manage this complexity by providing information for i. decision making ii. Strategic planning iii. Management control iv. Operational planning and control. Let us see how in each areas information is needed 1. Decision making (DM) Decision making is the process to arrive at a decision, the process by which an individual or organization selects one position or action from several alternatives. This process involves identification of the problem requiring solution. Identification of various alternatives through which the problem can be solved Evaluation of these alternatives and choice of an alternatives which best solves the problem At each stage of decision-making process relevant information is needed. Since every manager in an organization is involved in decision making he needs relevant information. Since decisions made by different managers differ, their information requirement also differs. A well integrated information system provides relevant information to different categories of managers. 2. Strategic planning (SP) SP is the process of deciding an objective of the organization on changes of these objectives and on the resources used to attain these objectives, the policies that are to govern the acquisition use and disposition of these resources. In the present competitive business environment only those organizations will be successful are which that engaged in effective strategic planning The information requirement for strategic planning is somewhat externally-oriented because the strategic plans are prepared in the context of environmental variables. The types of information needed for strategic planning are like outlook for the economy in the organizations current and prospective areas of activities current and prospective political and legal environment Capabilities of current and prospective competitors. Besides the external information internal information about the organisation’s current and prospective capabilities existing strategies, resource availableity and constraints is also needed. Modern well intergrated information systems are able to provide external information through the development of executive support system and artificial intelligence and expert system. 3. Management control Management control refers to the task of ensuring that activities are producing the desired results. This involves measurement of actual performance in the light of desired performance, comparison of the actual and desired performance. Identification of the deviation between the two analyses of causes and deviation and taking of corrective actions to overcome deviation Information is supposed to act as a guide to management control because control action is guided by adequate information from the beginning to the end. Information and control systems are closely, the information system is designed on the bases of control system. Therefore there must be a system of information tailored to the specific needs of managers at every level both in terms of adequacy and timeliness. Information system ensures that every manager gets adequate information timely. 4. Operational planning and control Information is extensively needed for operation planning and control. Operation planning is undertaken in the context of direction provided by strategic planning. It is a process deciding the most effective use of the resources already allocated and to develop a control mechanism to ensure the effective implementation of the actions so that organizational objectives are achieved. For implementing a strategic plan through the operational planning process, managers need information about what actions are to be undertaken, what is the time schedule for completing a particular action and what progress has been made in the completion of that action. TYPES OF INFORMATION SYSTEM Information system may be classified into the following types 1. Transaction processing systems 2. Management information systems 3. Decision support systems 4. Executive information systems 5. Expert systems 1. Transaction processing systems A transaction processing systems also known as data processing systems provides base to other information system. Transaction processing system is applied for conversion, manipulation and analysis of raw data into a form that is more meaningful to users. Data are streams of raw facts representing events occurring in organization physical environment before they are organized and arranged into a form that users can understand and use Transaction processing systems’ main tasks are data gathering, data manipulation, data classification, data storing, calculation and summarization. Nowadays organizations which have integrated information systems use computer-based transaction processing systems to ensure speed and accuracy data. 2. Management information systems Management information systems provide information in the form of reports and displays to managers and other professionals in the organization. MIS provide information in structured form based on the present and past data. Usually such information is useful for making structure decisions of the operating management level, more particularly for short term planning and operational control. MIS put emphasis on internal data i.e. about how the organization is functioning rather than external ones as information requirements are pre-determined. Therefore reporting capability of an MIS determines its effectiveness. 3. Decision support system (DSS) Decision support system (DSS) is information system applications that assist in decision making. These combined data, sophisticated analytical models and user friendly software to make-structured and unstructured decisions. The basic use of DSS is in the areas of planning, analyzing alternatives and search for solutions 4. Executive Information systems Executive Information systems (EIS) are information systems at the strategic management level of an organization designed to address unstructured decision making through advanced graphics and communication. They provide information to top-level managers in interactive format through their access to critical success factors of an organization. The use of EIS is primarily in the areas of strategic planning and strategic control 5. Expert systems Expert systems are knowledge intensive computer programs that use artificial intelligence. Artificial intelligence is an activity of the computers that displays behavior which may be regarded as intelligence. Unlike natural intelligence artificial intelligence is manmade and does not think the way as human beings do. Thus, expect systems capture the expertise of a human in limited domain of knowledge and experience. Expert systems provide information, tools and methods for decision making in specific areas such as systems that generate competitive bids, support loan approval, support training and specialized areas where experts are in scarcity and so on. The users of expert systems are the people who are involved in value-added work which requires special skills or expertise. In an organization, managers at different hierarchical levels perform different types of functions and therefore, require different types of information systems. ROLE, FUNCTIONS AND INFORMATION SYSTEMS AT DIFFERENT MGT LEVELS 1.ROLEMANAGEMENT LEVELNATURE OF FUNCTIONSINFORMATIONSYSTEMS1.StrategicTopBroad and creativeExecutive is part of decision support systems expert system and management is part of miss and Transactional processing systems. 2TacticalMiddleSomewhat broad and creative Routine detailed3OperationalLower. DEVELOPMENT INFORMATION SYSTEM For developing an information system which is computer based different approaches can be adopted i.e. 1. System development life cycle. 2. Prototyping. 3. Rapid application development. 4. End- user development. For developing an initial in information system, system development life cycle approach is adopted. System development life cycle (SDLC) or simply called system life cycle (SLC) is based on the life cycle stages of natural systems. Natural systems go through the four stages of life cycle. i.e. 1 Birth 2 Growths 3 Maturities 4. Decay In the same way an information system which is a man-made system passes through different stages though it is not necessary that these stages exactly resemble the stages of the natural systems. 1 Project Definition Project definition stage determines whether or not the problem can be solved by launching a new system. Thus at this stage, the need for a new system is recognized. The basis for a new system is the recognition of a need for improving an information system or procedure. This need leads to a preliminary survey or an initial investigation to determine whether an alternative system can solve the problem. It entails looking into the duplication of efforts, bottle necks, inefficient existing procedures or whether parts of the existing system need computerization. 2. System analysis. At this stage analysis of the problem of the existing system is undertaken and how they new system is likely to overcome these problems is specified. For this purpose a system analysis is undertaken which detailed study of various operations performed by a system and their relationship within and outside the system. During analysis data are collected about the available files, decision points and transactions handled by the existing system. There are various tools which are used for analysis such as i. data flow diagrams ii. Questionnaires iii. Interviews iv. On site observation Once this analysis is completed, the analyst has a firm understanding of what can be done to overcome various problems. Various alternatives systems are evolved and feasibility study is undertaken to determine their suitability. 3. System design System design is the most creative and challenging phase of system life cycle. System design describes how a chosen system will be developed. It prescribes the technical specifications that will be applied in the chosen system. It also includes the construction of program and program testing. System design involves certain steps as follows i. To determine how the input is to be produced ii. Designing input data and database that meet the output requirements Data processing phase are handled through programme construction and testing including the list of the programs needed to meet the system objectives and complete documentation 4. Implementation System implementation phase is less creative than the design phase. It is basically related to user training, site preparation and file conversion. Depending on the nature of the new system, user training is planning is and conducted. Ste preparation is required when the new system is quite different as compared to earlier one like the use of communication network by the new system. Conversion from old to new system takes place either at the time of user training or little later 5. Post implementation After the new system is installed and user staff is adjusted to the changes created by the new system, post-implementation stage begins which consists of mainly evaluation and maintenance. Evaluation involves an analysis of how the new system is achieving its objectives originally envisage. Users and technical staff may go through a formal post-implementation audit that determines how well the new system s working and if not, what kind of changes are required. Maintenance involves maintaining hardware, software and other devices with a view to have their optimum life. Post implementation may also involve enhancing the capacity of the present system either by updating hardware and software or by adding balancing equipment or both. Once the new system is in place, it will work through its useful life and reach to the level of maturity and finally decay yielding place to another system. How much time the system takes from maturity to decay depends on its capability and information requirements of the organization. MAKING COMMUNICATION EFFECTIVE Communication is the life blood of an organization, and without it, the organization cannot exist. Therefore the managers must ensure that communication system is effective. For ensuring this, managers must identify the essentials of an effective communication system and takes steps for making the system effective. ESSENTIALS OF EFFECTIVE COMMUNICATION The effectiveness of a system is measured n terms of its objectives achievement. Therefore the effective communication system is one which achieves its objectives. The ultimate objective of communication is to bring desired behavior in those for whom it meant. Therefore it is important to take into account the immediate objective of the communication of the communication which is in the form of ensuring that clear and adequate information flows at right place and right time. Thus various elements of an effective communication system are clarity, adequacy, timing and integrity. 1. Clarity. The communication process in order to serve its purpose must ensure clarity of communication, thereby facilitating exchange of ideas and avoiding unnecessary seeking and tendering of clarifications. Communication process is said to be clarity when it is expressed in a language and transmitted in a way that will be comprehended by the receiver. The basic objective of communication is to bring two minds together and this can be possible only when what the sender means is understood by receiver in the same way. 2. Adequacy There are two aspects of adequacy i. Coverage- Types of messages flowing in different/ various directions ii. Quality of various types of messages. Through communication audit, the adequacy of coverage can be measured. N the communication audit, a frequent approach is to measure the information need of various groups of managers and employees compared it with what has been made available them. Normative speaking, the process of communication must ensure that all those messages that are needed by the various individuals in the organization in connection with the effective discharge of their official duties must flow up to them and further that this flow in respect of different types of messages must be adequate 3. Timing. The utility of any message to the receiver are markedly affected by its timeliness. The communication should therefore, not only ensure that the messages reaches the receiver but also that it reaches the receiver but also that it reaches him when he requires. It is quite possible that a person may require sometimes in compiling information having diversified and complex contents which he has to collect from several points in the organization A suitable time span should be allowed for the purpose considering urgency and time requirement for collection of the information. 4. Integrity The principle of integrity of communication suggests that the purpose of communication is to support understanding by the individuals in their achieving and maintaining the cooperation needed to meet organizational goals. Though the immediate objective of any common is to get behavioural response from the receiver of the communication, its ultimate objective of communication may be to get change in behavioural response from the receiver. This may suggest that communication to be effective should be persuasive and convincing so that receiver acts accordingly. Besides, communication can be evaluated in terms of its ultimate objective where it can be measured in terms of behavioural response. Such response may be reflected in the form of attitude and morale, employee relations and other factors. The analysis of these factors, in general will provide total picture of effectiveness of communication It can be concluded that the communication system is effective if: 1. Adequate communication flows to different points 2. The message received is very close to the message sent 3. The non verbal message is congruent with the verbal message 4. The message elicits the desired response 5. The communication results in building trusting relationship between the source and the target STEPS FOR MAKING COMMUNICATION EFFECTIVE Management must take appropriate actions to make communication effective. The following are guidelines for effective communication 1. Clarity in idea The communicator should be quite clear about what he wants to communicate. Communication is the process starting with ideation which includes generation of ideas meant for communication. This is a subject-matter of communication and may include opinions, attitudes, feelings, views, suggestions, orders etc 2. Purpose of communication The basic purpose of any communication is to get behavioural response from the receiver of the communication. However the ultimate objective may be extended further eg getting an order accepted by the subordinate. The communication should be directed towards this objective by the efforts of communicator. 3. Empathy in communication The way to effective communication is to be sensitive towards receiver’s needs, feelings and perceptions. This what psychologists call empathy in communication implying putting one’s legs in other’s shoes or projecting oneself into the view point of the other person. When the sender of the message looks at the problems from receiver’s point of view, much of the understanding is avoided. 4. Two -way communication Communication is a two-way traffic and this fact must be realized in communication. Two-way communication brings two minds together which is the basic core of any communication. It involves a continuous dialogue between sender and receiver of the message. Upward communication can become a reality in the organization and effective of this fact is recognized. 5. Appropriate language The subject-matter of communication is transmitted by encoding it into some symbols. Such symbols may be in the form of words either spoken or written and gestures. If the words are used, the language used for communication should be such which is understandable by the receiver. Technical terminology and multisyllable words may be impressive looking, but they can also be troublesome to the listener. One way of making the communication simple is to use repetitive language with which the receiver is quite familiar. 6. Supporting words with Action. Often it is said that action speaks louder than words. While communicating, the sender may use the action to emphasize a point. This enhances the understanding as well as emphasizes the important point in communication 7. Credibility in communication One criterion for effective managerial communication is that it has credibility or believability. The subordinates obey the order of the superior because he has demonstrated through his competence that he is worthy of trust. He must also maintain his trust and credibility. Thus, any communication which is based on this trust and credibility will be followed by the subordinates. 8. Good listening A communicator must be a good listener too. By this process he is giving chance to others to speak and gathers useful information for further communication. By concentrating on the speaker’s explicit meanings, the manager can obtain a much better understanding of what is being said. Managers suffer from some common habits of bad listening through much of their communication time is spent in listening. Newstrom and Davis have suggested ten points which may be observed in listening. These are a. Stop talking b. Put the talker at ease c. Show the talker that you want to listen to d. Remove distractions e. Emphasize with talker f. Be patient g. Hold your temper h. Be easy on arguments and criticism i. ask questions j. Stop talking