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PROBABLE ANSWER POINTERS 1. The nature of any organisation's environment involves a diverse range of elements.

Different elements are likely to influence to different degrees , depending on the nature of the organisation. There are, however, certain elements that are likely to influence most organisations, and these are listed with an example of data items related to each: Economic: inflation rates, employment levels, interest rates, exchange rates Political:strength of party in Parliament, policies of parties, influence on economy Markets:consumer tastes, distribution channels, growth rates in sales Competence: pricing policies, marketing activities, strategies for growth Technology: new product information, new material development, improved manufacturing regional variations Social: changes in social structure (e.g. family unit, ) social policies and support Legal: new consumer legislation. The organisation may view many of these factors at the local, national or international level. Also, the data need not necessarily only take the form of qualified measures but may equally be represented as subjective value judgements by those involved in assessing the environment. 2. Data represents a shared resource within the organisation. It is difficult to think of any item of data in any organization that is used by only one individual or for one single activity. Using an example of the customer ordering a particular item from the organisation, the basic order request data may be used by the following functions in the organisation : Sales Dept: Operation Dept: Cost Accounts Dept: Warehouse/Despatch Financial Accounting record the sale and update customer sales record process the order to manufacture/schedule/order materials/inspect the goods required record the costs of the order transaction throughout the organisation and monitor /control these arrange delivery of the order to the customer as required record the order request initially and subsequently produce the financial document associated with receiving payments for this.

There are many examples you could use and the examples provided could be elaborated in much more detail. The essential point to note is that data provides a key source for the operation of many parts of an organisation, each requiring the same element of data (e.g. order request data in the above example) to perform different tasks or functions. 3. The process of strategic management is concerned primarily with the long-term development of the whole organisation. Information supports this process in a number if ways;

It improves knowledge and understanding of the environment, It identifies potential threats to the business in the long-term, It identifies potential opportunities for the business through new markets or change in technology, It assists in the evaluation of sources of added value and the potential competitive advantage of these ( e.g. through market research studies), It monitors strategies and policies of competitors, It identifies and evaluates potential sources of improved efficiency in the operations of the business.

It monitors the effectiveness of existing strategic and tactical plans 9e.g through internal monitoring systems). This list could be extended, though the key point is to recognise that the information provided relates to both external and internal factors. The balance of the information used will be externally oriented. 4. It is important to recognise the distinction between the terms 'data' and 'information' to answer this question. The factors are identified include :

prior knowledge of recipient to understand what the data means quality of the data provided initially ( i.e. garbage in = garbage out ) quality of the processing activities used to manipulate and communicate the data appropriateness of the time at which the data is received effectiveness of the communications media used the nature of the interference between the user/recipient and the technology providing the data

These points could be developed further, although the key point to remember is that the conversion of data to information is not an automatic process, and the whole field of systems development and operation is designed to improve the efficiency and effectiveness of this conversion process. 5. Data exists within an organisation in four broad forms, including:

written or documentary oral, resulting from meetings and discussions visual, reflecting the actions of people in the organisation subconscious, based on the knowledge, views, experience etc... of the individuals and groups.

Whilst much of the formal data processing activities involve the first of these, it should be recognised that the other forms are equally valid forms of data and will influence significantly the operations and decisions of the organisation. 6. One way of viewing the information systems is as a series of activities which are broadly encompassed in the following stages :

Identify data needs. This may be a permanent requirement, e.g. regular postings to an account ledger, or response to a transient problem, eg, to combat the effects of a strike. Not all data can be predicted. Data capture . The design of data capture system must reflect the timing and the processing requirements. Data processing and communication. i.e, how it is turned into information or made useful. This will include items storage, access, calculating, sorting and representation - e.g, exception reports, levels of detail. User data processing. The users of the system (or its information) are the people who add value to the data or achieve benefits. The way in which an accountant will interpret or modify information produced by a computer is an example of this. New developments in information system technology, such as expert systems, are focused on this area. Usage of information. (the results of the user having the information, e.g., improved knowledge, actions, decisions, or any change in behaviour). Often these will be intangible. Information has no intrinsic value. Its value lies only in the results which it can bring about. System feedback and control. (the control or feedback of results which is applied to the system, often from the user). This may modify the behaviour of the system to better achieve the needs of the user - e.g., improve methods of stock control.

The activities and stages outlined above are those that apply to most forms of system. 7. Relationship between an organisation's objectives and practical performance criteria. Five dimensions would be :

Environment: the things outside the organisation with which it interacts, e.g., local people, the trade community, the government. To some extent this is a public relations dimension. Competitive edge or distinctive competence - the way in which the management decide to differentiate its products or services in terms of price, quality of reputation. Marketing thrust: how the organisation seeks to promote itself through advertising, sponsoring, etc... A measure of effectiveness may be the size of the client base or turnover. Operating efficiency: this is determined by the ratio of internally generated costs to income. Ultimately, control of these costs ( labour, overheads, stock, etc.. ) affects profitability. Human factors. The organisation will seek to create and maintain a humane image for the benefit of employees, consumers generally and potential customers.

These five factors will influence the objectives of most organisations. The extent to which a particular factor will influence the objectives will depend on the situation of the organisation. For example, during an economic recession when markets are in decline or stagnant, the primary objectives may be oriented more towards survival through improved cost efficiency and operating efficiency. Hence, changes in each of these factors may result in a change in the objectives pursued and the relative importance of each one. The determination of the objectives of an organisation is a very complex process involving internal and external factors, which are liable to change dramatically in the short to medium term. 8. Difference in the decision types (and therefore the information structured requirements) which apply at different levels in the organisation. Conventionally, a three level model of management is accepted:

strategic or top management tactical or middle management operational or supervisory management.

It should be stressed that it is the implication of the decision, not the job title, which places the decision-maker at the particular level. The boundaries are therefore not hard and fast: Strategic decisions:

very long term horizon, e.g., 5-10 years radical implications for the whole organisation, e.g., new products, new markets high risk, e.g., investment in overseas markets non-routine, e.g., setting up a new company Tactical decisions:

medium time horizon, e.g., less than 5 years implication for a function under control, e.g., accounting or production moderately uncertain outcome involving the possible use of forecasting techniques and information technology possible routine decisions e.g., quarterly budgets

moderate risk, as the level of investment is smaller and the decisions are more predictable, e.g., in regard to manning levels.

Operational decisions:

short timescales, e.g., 1 day to 1 week routine and specific outcomes, e.g., achievement of production low levels of risk with much decision support predictable, well documented information requirements, e.g., office procedures.

targets

Whilst a distinction has been drawn between these three levels, one should recognize that in practice it is often difficult to allocate a particular decision clearly to one category as opposed to another. 9. The attributes which are used in identifying the quality of the information provided in a system include:

the level of accuracy the level of detail current or historic nature completeness relevance to user needs the degree of bias the extent to which it may be verified the level of uncertainty clarity of expression/communication.

Each of these quantitative values may be measured over a range of potential values. The position of the data on this range of values should not be viewed as preferable for all situations; certain problems/decisions may require a highly accurate form of data, whilst other users may be satisfied for their particular decisions. 10. Two of the three broad levels of decision making are: Tactical, characterised by :

concern (primarily) with the medium term interface between strategic (long-term) and operational (short-term) concerns relation to particular functions or groups of activities semi-structured forms of decisions moderate degrees of risk and uncertainty the fact that information needs may be predicted to some exten

Examples of this decision include product prices, setting stock levels, budgetary control decisions, etc...

Strategic, characterised by:

concern with the long term ( primarily ) relation to the total organisation typically unstructured and novel types of decisions (usually) high levels of risk and uncertainty specific information needs which are usually difficult to predetermine.

Examples include new technology development, acquisition of a competitor and the development of new markets.

All the best !

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