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What Are The Organizational
What Are The Organizational
information technology?
Information never moves just one way in an organization. It can move vertically, horizontally,
inward and outward. These different directions form the organizational dimensions of
information. As information travels within these dimensions, it is filtered, manipulated and
summarized. Each direction and destination determines the final product and its purpose.
Inward-Outward Flow: Information that is sent to and from customers, business partners and
shareholders is vital to the success and survival of an organization. This is the inward and
outward flow of information. The inward flow of information often involves raw data. This
includes sales reports, competitor strategies and market information. An external event can have
a very large impact on a business, positive or negative. The sooner a company can receive the
information and react, the better.
The outward flow of information can be slightly different. Reports to shareholders happen in
quarterly or yearly increments for the most part, unless an important internal event occurs. As
well, marketing material, which is a form of outward information, is very refined. It does not
consist of raw data, but rather carefully selected pieces of information that would most often be
confusing to consumers. Ultimately, it is the purpose and destination of the information that
determines its format. Reports to shareholders, in the form of financial statements, are designed
for accuracy and uniformity. However, marketing material is designed to be appealing and
persuasive.
Information that passes between two organizations, such as suppliers, manufacturers or other
business partners, is very similar to the horizontal dimension. The purpose is to provide up to
date information that pertains to the completion of a particular task. Effective communication
between companies will result in efficient and low cost transactions.
Downward information flow: The downward information flow involves information being sent
down from a higher level of management. For example, strategic management sets out the goals
for tactical management, such as goals, initiatives and strategies. Tactical management then
implements these directives and sets new directives for operational management, and operational
management then sets new directives to non-management employees.