Chapter 5 information and knowledge(b&w)

B. H. Gardi College of Engineering & Technology, RAJKOT
Department of Master of Computer Application
Prepared By : Ajay A. Ardeshana
Email : ajay.24021985@gmail.com Mobile : 9558820298 1
Prepared By :-
Mr. Ajay A. Ardeshanaj y
MCA Lecturer
At GARDI VIDYAPITH
RAJKOT.
Email :- ajay.24021985@gmail.com
Mobile :- + 91 – 95588 20298
Chap5er - 5
INFORMATION
ANDAND
KNOWLEDGE

Information Concepts
In MIS an information has a precise meaning and it is different
from data. An information has a value in Decision-Making.g
Data is like row materials while the information is equivalent
to the finished goods product after processing row material.
Characteristics of an Information :-
1. Improve representation of an Entity.
2. Update the level of Knowledge.
Prepared By :- Ajay A. Ardeshana Email :- ajay.24021985@gmail.com Mobile :- 9558820298
3. Has a surprise value.
4. Reduce uncertainty.
5. Useful in Decision-Making.
Whether an entity is a data or an information it must be transfer
through communication from “source” to “destination” without
loss of content.
SOURCE
TRANSMITTER
ENCODER CHANNEL
RECEIVER
DECODER
DESTINATION
NOISE AND
DISTORTION
MIS is equivalent to transmitter which provides the information
and send through channel to the various receivers, which is
Conceptual Model of
Communication
g
decoded or interrupted by the receiver at the destination.
The poor quality of an information due to various factors would
create a confusion and misunderstanding, which is equivalent to
a ‘Noise’ and a ‘Distortion’ in the communication model.

Information Presentation
Data may be collected in a best possible manner and
processed analytically, bringing a lot of values in thep y y, g g
information; however, if it is not presented properly, it may fail
to communicate any thing of value to the receiver.
The degree of communication is affected by the method of
transmission, the manner of information holding and the
limitation and constraints of receiver as the information
processor and the organization as the information user
processor, and the organization as the information user.
The methods used for communication are :
Summarization and
Message Routing
Information Summarization :-
The concept of summarization is used to provide information which
is needed in the form and content.
The information can be summarized in the number of ways :
Key for summarization Focus of Information Exampley p
Management position responsibility General manager, Divisional
Head like : Marketing,
Materials…
Management Functions
levels in the organization
Performance, Goals,
Targets Relevance to
the level
Production top, middle
Operations.
Selective on Condition Exceptions Only those products where
The principle behind the summarization is that too much information
causes noise and distortion, confusion, misunderstanding and
missing the purpose.
Selective on Condition Exceptions Only those products, where
sale is bellow the budget.

Message Routing :-
The principle here is to distribute the information to all those who
are accountable for the subsequent actions or decision in any
manner.a e
That is if the information is generated with a certain purpose for a
primary user, then such information may have secondary purpose
to some other user in the organization.
This is achieve by sending the copies of the report or documents
to all the concerned people or user.
The principle of message routing achieves the spread of
The principle of message routing achieves the spread of
information to the appropriate quarters.
Bias in Information
While choosing the appropriate method of communicating
information, a care has to be taken to see that it is not Bias.,
For Example :- While using the technique of classification or
filtering the information, it should not happen that certain
information gets eliminated or does not get classified.
That is, deliberate Bias in covering certain information is to be
avoided.
To overcome this problem, the former structure of an
organization should be adopted and the type of information and
its receiver should be decided by the top management.

Many a times data or information may conclude, in this case one who
conclude the information may have a bias in the process of collection,
processing and presentation of data and information.
For Example :- the organization have departments like Corporate
Planning, Market Research, R&D, HRD and so on, which collect the data
and analyze for the company and communicate the conclusion In alland analyze for the company and communicate the conclusion. In all
these cases the personal Bias, Organizational Bias and Management
Bias may be reflected in the entire process of collection, processing and
communicating the conclusion.
The presentation of the information will generate the Bias and may affect
the user.
For Example :-
p
If the information is presented in an alphabetical order and if it is lengthy, the
first few information entities will get more attention.
For a quick grasp, the information is presented in a graphical form. The choice
of scale, graphic size and color introduce the Bias in reader’s mind.
To avoid the Bias in information, the manager and decision maker has to
choose his classification or filtering criteria, the scope of information, the
method of analyzing and presentation of conclusion.
To avoiding the Bias in information, it must have certain atributes to
increase its utility.
Attributes of an Information :Attributes of an Information :-
1. The accuracy in representation :-
The test of accuracy is how closely it represent a situation or event.
The degree of precision will decide the accuracy in representation.
2. The form of presentation :-
The forms are qualitative and quantitative, numeric or graphic, printed or displayed,
summarized or detailed. Appropriate form is important.
3. The frequency of reporting :-
How often the information is needed? How often it need to be updated?
4. The scope of reporting :-
The coverage of information in terms of entities, area and range and the interest
shown by the recipient or the decision maker.

5. The Scope of Collection :-
Internal from organization or external to organization.
6. The Time Scale :-
It may related to the past, the current and the future and can cover the
entire time span.
7. The relevance to decision-making :-
The information has a relevance to a situation and also to a decision-
making.
The irrelevant information is a data.
8. Complete for the decision consideration :-
Information which cover all the aspects of the decision situation by way
of the scope, transaction and period is completed.
9. The timeliness of reporting :-
The receipt of information on time or when needed is highly useful.
The information arriving late, lose its utility as it is outdated.
Information: A Quality Product
Information is a product of data processing.
If we take care about attributes of an information we willIf we take care about attributes of an information, we will
determine the quality of an information based on the degree of
motivation it provide for an action, and the contribution it
provide for decision-making.
The quality of information can be determined on the four
dimensions.
Utility
Satisfaction
Error
Bias

Utility :-
This dimension has four facets : the form, the time,
the access and the possession.
If the information is presented in the form thep
manager requires, then its utility increases.
If it is available when needed then the utility is
optimize.
The information is easily and quickly accessible
through the Online Access System its utility gets an
through the Online Access System, its utility gets an
added boost.
If the information is possessed by the manager who
needs it, then its utility is the highest.
Satisfaction :-
The concept of Utility of the information is subjective to the individual
manager, in terms of forms, time and access.
Because of heaving ore then one user of the information, subjectiveness
would vary.
Therefore one common key for measuring the quality of informationTherefore one common key for measuring the quality of information
would be the Satisfaction of Decision-Maker.
The degree of satisfaction would determine the quality of information.
Error :-
The error creep in on account of various reasons, namely:
1. An incorrect data measurement.
2 A i t ll ti th d
2. An incorrect collection method.
3. Failure to follow the prescribe data processing procedure.
4. Loss of data or incomplete data.
5. Poor application of data validation and control system.
6. A deliberate falsification.

The erroneous information is the serious problem because
the decision maker cannot make the adjustment as he is not
aware of the location of error.
To control the error is necessary to follow the method of
system analysis and designingsystem analysis and designing.
The processing of data form the information should be
allowed after thorough validation of transaction and content.
Care should be taken that the information should be
processed after the correctness of data in terms f time and
the number of documents and the transaction in the period.
p
The measure of system auditing, the use of tested data
would help to control the error arising out of wrong
processing.
Parameters Impacting Quality
The parameters of good quality are:
ImpartialityImpartiality
Validity
Reliability
Consistency
Age.
1. Impartiality :-
An impartial information contains no Bias and has been collected
without any distorted view of the situation.

2. Validity :-
The validity of the information related to the purpose of the
information or it is the answer of the question – Does the
information meet the purpose of the decision making for which
it is being collected?g
The validity also depends on how the information is used.
3. Reliability :-
It is connected to the representation and the accuracy of what is
being described.
For Example : If the organization is collects the information on the
For Example : If the organization is collects the information on the
product acceptance in the selected market segment, the size of the
sample and the method of selection of sample will decide the
reliability.
Reliability is affected if the data is not collected from right source.
4. Consistancy :-
The information is termed as inconsistence if it delivered from data
which does no have consistent pattern of period.
For Example :- We have collected the information on the quality of
production for the last 12 months to fix the production norms. If inproduction for the last 12 months to fix the production norms. If in
this 12 months, the factory has worked with variable shift
production, the production statistics would be inconsistent.
The Regularity of providing the information would help to accessing
the consistency in the information.
5. Age :-
If the information is old, it is not useful today and it does not meet
any characteristics of the information namely, the update of
knowledge, the element of surprise and the reduction of
uncertainity, and the representation.

Classification of the Information
John Dearden of Harvard University Classified the
Information in the following manner :Information in the following manner :
1. Action V/s No-Action Information
2. Recurring V/s Non-recurring Information
3. Internal V/s External Information
4. Planning Information
5. Control Information
6. Knowledge
1. Action V/s No-action Information :-
Information which include action is called Action Information.
Information which communicate only the sate of situation is called
No-action information.
For Example : “No Stock” report calling a purchase action is anp p g p
action Information but the stock ledger showing the store transaction
and the stock balance is a No-action Information.
2. Recurring V/s Non-recurring Information :-
An information generated at regular interval is a Recurring
Information.
For Example : The Monthly sales report, the stock statements, the
trail balance etc. are Recurring Information, The Financial Analysis
or the report on the market research study is a Non-recurring
Information.

3. Internal V/s External Information :-
The Information generated through the internal source of the
organization is termed as an Internal Information.
The Information generated through the Government Report, the
Industry surveys, etc. is termed as an External Information.
The Action Information, the Recurring Information and the
Internal Information are the prime areas for computerization and
they contribute qualitatively to the MIS.
The timing and accuracy of an Action Information is usually IMP.
The Internal and External Information changes, depends on the
level of the management decisions At the top level management
level of the management decisions. At the top level management
the tress is more for External Information and at the
operational and middle level management, the tress is more on
Internal Information.
4. Planning Information :-
Certain standards, norms and specifications are used in the planning
of any activity. Hence, such an Information is called Planning
Information. The time standard, the decision standard and the
operational standards are the example of planning Information.
5. Control Information :-
Reporting the status of a activity through a feedback mechanism is
called the Control Information.
6 Knowledge Information :
6. Knowledge Information :-
The collection if information through the library report and the
research studies build a knowledge base for decision making is
called as Knowledge Information.

Methods for Data and Information Collection
Various methods are available for the collection of data.
The choice of method will have an impact on quality of information.
Similarly the design of data collection method also decide the quality of data
and information.
Following are the methods for collecting data and information :
Observation
Experiment
Survey
Subjective Estimation
j
Transaction Processing
Purchase from Outside
Publication
Government Agencies
Value of the Information
The decision theory suggest the method for solving the problem of
Decision-Making under certainty, risk and uncertainty.
A decision-making situation is of certainty if the decision maker has
full knowledge about the alternatives and its outcomes.
This is possible when perfect information is available. Therefore,
the information has a preserved value in terms of Decision-Making.
The information is called perfect information if it wipes out
uncertainty or risk completely.
Th d i i th ti l t th t th l f th dditi l
The decision theory stipulates that the value of the additional
information is the value of the changes in the decision behavior
resulted by the information less the cost of obtaining the
information.

If the additional information does not cause any change in decision behavior
then the value of the additional information is Zero (0).
The value of additional information making the existing information perfect
(VPI) is :
VPI = (V2 – V1) – (C2 – C1)
V is the value of the information and C is the cost of obtaining the InformationV is the value of the information and C is the cost of obtaining the Information.
V1 and C1 related to one set of Information and V2 and C2 related to another
set of information.
A manager is faced with the problem of decision making under uncertainty or
risk condition if he does know the perfect information about the decision
situation.
Given a set of possible decisions a DM select one on the basis of the available
f f f
information. If the new information causes a change in decision then the value
of new information is the difference in the value between the outcomes of old
decision and that of the new decision.
The information has a value only for those who have the capability to
use it in a decision.
General Model of a Human as an Information Processor
A manager or a decision maker uses his sensory receptor, normally
eyes and ears, to pick up information and transmit them to brainy p p
for processing and storage.
The result of this processing will be response which may be
decision, an action or at least a reorganization of the event for
future use.
Hence, a manager can be said to be an information processor.
While processing the information for managerial response
While processing the information for managerial response,
manager also use accumulated knowledge from memory.
The capacity of a manager to accept and process inputs to
produce output is variable and limit.

Filtering is a process whereby a manager selectivity accepts that much
input, which his mental ability can manage to process.
The filtering process block the unwanted or inconsistence data or the
data which does not match the frame reference.
The experienced manager is a skillful information processor where he is
able to change the frame of reference or select the decision tool for theable to change the frame of reference or select the decision tool for the
available information.
Generalized model of Information Processor
Brain
Use of Stored Knowledge
and Experience
Input from
Eyes, Ears
Filtering
and
Blocking
Mental
Processing
Application,
Selection,
Manipulation
Output
Decision,
Action,
Registration
Manager’s individual Differences
The manager may come to same decision in a given situation but
they may not follow the same decision process.y y p
Each manager has his own style, a method to perceive the data,
organize and process the same as per his frame of reference,
confidence in decision procedure and the time available for the
decision-making.
The managerial ability, skills and tools play considerable role in the
cognitive style of the manager.
cognitive style of the manager.
These styles affect the information system design and satisfaction
of the manager.

Reasons for individual differences :-
1. Locus of control Internal or External to the situation.
Degree of presentation in accessing the control
2. Personal Dogmatism.
The degree of faith in belief options and past experienceThe degree of faith in belief, options and past experience.
3. Risk Propensity.
The ability to take the risk.
4. Tolerance for Ambiguity.
Level of clarity required in the information.
5. Manipulative Intelligence.
The ability to manipulate the data and information.
6. Experience in Decision-Making.
Extent of experience at particular level of decision.
7. Knowledge of the task, tools and technology.
The extent of knowledge in the application of the tools and technology.
MIS, and the Information and Knowledge
The goal of MIS is to provide the information which has a surprise
value and which reduce the uncertainty.y
It should simultaneously build the knowledge based in the
organization by processing the data obtain from different sources.
A special care should be taken to handle a noise and distortion on
the way of destination.
The utility of information increases if the MIS ensure that the
information processes necessary attributes
information processes necessary attributes.
The information is a quality product for the organization. The quality
of information as an outgoing product can be measure on four
different dimensions : utility, satisfaction, error and bias.

Quality can be ensure if the inputs to the MIS are controlled on
the factor of impartiality, validity, reliability, consistency and age.
MIS should make a difference between different kinds of
information for the purpose of communication. An action/a
decision-oriented information should be distinguished from a nog
action/knowledge-oriented information.
Since the decision maker is a human, it require to recognize
some aspects of human capabilities in the MIS design. These
human capabilities can be differ from manager to manager.
Meet the needs of the total organization.
MIS d i h ld th i t d t lit
MIS design should ensure the input data quality.
Recognizing that the information may be misused if it falls in
wrong hands. The MIS design should have a features of filtering
and blocking.

Chapter 5 information and knowledge(b&w)

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