DIFFERENT TYPES OF INFORMATION
DIFFERENT TYPES OF INFORMATION
The type of decision needs different types of information. The information which is needed at a different level of management can be:
I. Operational information
II. Tactical information
III. Strategic information
1. Operational information:
Operational information’s are such information which refers to the everyday needs for control over business activities these are known as a routine activity or repetitive in nature. These activities are controlled at lower level management. The information regarding the cash position or day-to-day basis is monitored and controlled at the lower levels of management. Similarly, in the marketing function, daily and weekly sales information are used by the lower level manager to monitor the performance of the sales force.
2. Tactical information:
Tactical information helps middle-level managers allocating resources and establishing controls to implement the top level plans and policies of the organization. For example (1) information regarding the alternative sources of funds and their uses in the short run, (2) opportunities for deployment of surplus funds in short term securities, etc. the tactical information is generally predictive, focusing on short-term trends of the business unit. It may be partly current and partly historical and may come from internal as well as an external source.
3. Strategic information:
Of course, the operational information is needed to find out how the given activity can be performed better, strategic information is needed for making alternative choices among the business options. The strategic information helps in identifying and evaluating these options so that a manager makes informed choices which are different from the competitors and the limitations of what the rivals are doing or planning to do. Such choices are made by managers to define goals and priorities, initiate new programs and develop plans and policies for acquisition and use of firm’s resources such as information regarding the long-term needs of fund for on-going and future projects of the company may be used by top-level managers in taking decision regarding going public or approaching financial institutions for long-term loan. Strategic information is predictive in nature, relies heavily on external sources of data has a long-term perspective. It is believed that strategic information is basically information regarding the external environment. However, it is now well recognized that the internal factors are equally responsible for success or information is also required for strategic decision-making.
The figure below represents the types of information required at different levels of the managerial hierarchy.
CONCLUSION: it may be noted that each type of information has its role to play in managerial effectiveness. Each type of information is needed with a varying degree by the managers at all levels. Thus, a part of operational information may be used even by the chief executive officer of a company. The differences lie in the proportion of each type of information in the total information in the total information needs of managers at different levels of managerial hierarchy.
