Information Flow Information flow in an organization in two ways


Vertically - Flow up and down among managers Example: Production supervisors constantly communicate with with production-line workers and their own managers. Horizontally - Flow sideways among departments Example: Regional sales managers from the marketing department set their sales goals by coordinating with production managers in the production department.


Organizational Functions Most organizations have departments that perform five basic functions:
1. 2. 3.



Accounting - Keep track of all financial activities. Production - Makes company product. Marketing - Advertises, promotes, ands sells the product. Human Resources - Finds and hires people and handle personnel matters. Research - Does product research and relates new discoveries to the firm's current or new products.

Information flow . Deal with control planning. 3.Management Levels There are three management levels in most organizations: 1. tactical planning. and decision-making. Example: vice president of marketing determines demand for current products and sales strategies for new products. Example: regional sales manager sets sales goals for sales in several states. B. Concerned with long-range planning (strategic planning) B. Supervisors A. 2. Manage and monitor the employees or workers. Implement long-term goals of the organization. Example: production supervisor monitors materials needed to build a product. C. Need information to help them plan future growth and direction of the organization. C. Middle Management A. Responsible for operational matters (day-to-day operations). B. Top Management A. C.

Example: developing production goals. Information both horizontal and vertical across functional lines within the organization. 1. concurring with top-level managers and supervisors Operational Needs of Supervisors A. C. B. C. Information flow is primarily vertical. Detailed current day-to-day information. b. Example: planning for new facilities 2. . Each level of management has different information needs. internal information to develop budgets and evaluate performances. B. Summarized information (weekly or monthly reports). 3. Information to plan for long-range events. D.a. Information that reveals overall condition of the business in capsule form. Strategic Needs of Top-level managers A. D. Historical. Tactical Needs of Middle-level managers A. Information from all departments below and from outside the organization. Information must flow in different directions to support the different information needs of management. B.

Example: monitoring current supplies. . and production output. E. D. Communicate mainly with middle managers and workers beneath them. current inventory.C. Day-to-day internal information to keep operations running smoothly.

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