Standard Grade Business Management - Information and Communication Technology

Information and Communications Technology (ICT)

INFORMATION

Data is a collection of facts or quantities that has been assembled in some formal manner with the objective of processing it into specific information. DATA Information is data that has been processed into a form that assists decision making and planning INFORMATION Fred F Stone 38 7.60 Barney Rubble 32 6.50 Laura Croft 36 6.50 Annie Gunn 28 6.50 Employee Hours worked Rate of Pay Fred F Stone 38 7.60 Barney Rubble 32 6.50 Laura Croft 36 6.50 Annie Gunn 28 6.50

Sources of Information - Primary Researched and collected by an organisation for its own purposes. It is collected first hand. Eg Questionnaires Interviews Observation The information should be relevant to the needs of the organisation The information can be expensive and difficult to collect and also some people may lie when questioned.

Sources of Information - Secondary Researched and collected from published sources Eg Newspapers Textbooks the Internet Journals The information is inexpensive to collect and it should be easy to access The information can be out of date and is available to your competitors. It may also not be wholly relevant.

Sources of Information - Internal Researched and collected from within the organisation’s own records Eg Financial Information Personnel Information The information is relevant to the organisation and should be accurate There are the costs associated with setting up information systems.

Sources of Information - External Researched and collected from sources outside the organisation Eg Government reports Newspapers Competitors Accounts The information is valuable in providing the organisation with information about the external environment eg PEST The information can be out of date and is available to your competitors. It can also take time to collect the information.

Types of Information

WRITTEN INFORMATION

Examples

Letter

Memorandum

Report

Form

Notices

BENEFITS OF USING WRITTEN INFORMATION

Records of information can be referred to at a later date

essential when legal or contractual information is being recorded

you can easily see who it has come from

The person receiving the information can read over it several times to make sure they understand it fully

VERBAL INFORMATION

Examples

Face-to-face

Telephone call

Voicemail

Videoconferencing

BENEFITS OF USING VERBAL COMMUNICATION

A direct and immediate method of communication

You get a response straight away

Discussion is much easier

More appropriate for delicate/ sensitive issues

PROBLEMS WITH VERBAL COMMUNICATION

There may be a lack of privacy

No record of what was discussed

Language barriers

Communication may be difficult if many people are involved

pictorial INFORMATION

Examples

Maps

Signs

BENEFITS OF USING PICTORIAL INFORMATION  Information is easy to remember  It is a good way to stress certain points you wish to make  Pictures and Signs can break through the language barrier

GRAPHICal INFORMATION

Examples

Break Even Charts

Sales Comparisons

BENEFITS OF USING GRAPHICAL INFORMATION  Good way to display complicated information  Allows comparisons to be easily made

NUMERICal INFORMATION

Examples

Final Accounts

Cash Budgets

BENEFITS OF USING NUMERICAL INFORMATION  Allows for forecasting, calculations, and comparing different courses of action if used with a spreadsheet programme  Can compare yourself with competitors

COMMUNICATION

Purpose of Communication Communication is an important part of business. Managers must be able to communicate their wishes and instructions to subordinates, and the business must also communicate with the outside world to inform them of the products they sell.

Methods of Communication The main methods of communication are: Written Communication Verbal Communication Electronic Communication Visual Communication Body Language

How is ICT used to communicate? Information and Communications Technology (ICT) can be used to improve communication. Key ICT used in communication is shown below: Fax Video-conferencing E-mail Internet

Businesses must choose the correct method for communicating information. For example, a business might select:

A phone call for a short message

A letter for a long, complicated and detailed message

A fax for an urgent message which involves figures

An email message to the USA

A face-to-face meting to provide some bad news

Many communications are received but not always understood due to the following reasons:

The telephone line – too noisy, breaking up, loss of signal

Letters are too complicated

Fax messages are blurred, faint or not received in full

E-mail messages are too brief, full of jargon or the receiver may not have been able to open up an attachment

People do not express themselves clearly

EVALUATING INFORMATION It is important that managers and decision makers are not being given information that is irrelevant or unnecessary. The quality of information being used is therefore very important to the decision making process. In order to make proper use of information provided, the information must possess certain qualities. These are:

GOOD INFORMATION Complete Relevant Concise Comprehensive Timely Accurate Cost Effective