5. Sources and Classification of Information

Lecture 4 – Sources and classification of Information

Information is a vital resource for the success of any organization. Future of any organization lies on how information/knowledge is shared and utilized. An information source is a person, thing or place from which information come, arises or is obtained. 

Information Sources

Information in organizations can be categorized into primary, secondary, and tertiary sources, each serving a different purpose and level of depth. Here are examples of each source type:

• Primary Sources: Internal Documents, Survey Questionnaires, Interviews and Focus Groups, Observations
• Secondary Sources: Published Reports, News and Media, Books and Journals, Databases and Archives.
• Tertiary Sources: Encyclopedias and Almanacs, Directories, Textbooks, Websites and Online Portals.

Classification of Information

Information can be classified based on; characteristics, application and management hierarchy.

Classification by Characteristic

Based on Anthony’s classification of Management, organization’s information is categorized into three types: 

• Strategic Information: Strategic information is concerned with long term policy decisions that defines the objectives of a business and checks how well these objectives are met. For example, acquiring a new plant, a new product, diversification of business etc., comes under strategic information. 
• Tactical Information: Tactical information is concerned with the information needed for exercising control over business operations and resources, like budgeting, quality control, service delivery models, operations management, inventory management, production management and procedure control activities etc. 
• Operational Information: Operational information is concerned with plant/business level transactional information and is used to ensure proper conduction of specific operational tasks as planned/intended. Such information may involve operator specific information, machine specific and shift specific jobs, quality control checks, sales data and daily summaries of carried out transactions etc. 

Classification by Application

In terms of applications, information can be utilized as follows: 

• Planning Information: These are the information used for planning function; establishing goals and arranging them in logical order. Such information is needed to achieve faster goals and needed for establishing standard norms and specifications in an organization. Such category of information is needed for strategic, tactical, and operation planning of any activity. Examples of such information are time standards, design standards etc. 
• Control Information: This information is needed for establishing control over all business activities through feedback mechanism. This information is used for controlling attainment, nature and utilization of important processes in a system. When such information reflects a deviation from the established standards, the system should induce a decision or an action leading to control. 
• Knowledge Information: Knowledge is defined as “information about information“. Knowledge information is acquired through experience and learning, and collected from archival data and research studies. 
• Organizational Information: Organizational information deals with an organization’s environment, culture in the light of its objectives. This information is used by everybody in the organization; examples of such information are employee and payroll information. 
• Functional/Operational Information: This is operation specific information. For example, daily schedules in a manufacturing plant that refers to the detailed assignment of jobs to machines or machines to operators. In a service oriented business, it would be the duty roster of various personnel. This information is mostly internal to the organization. 
• Database Information: Database information construes large quantities of information that has multiple usage and application. Such information is stored, retrieved and managed to create databases. 

Quality of Information

Various authors propose various lists of metrics for assessing the quality of information. The following are the most essential characteristic/ features for information quality: 

• Reliability – It should be verifiable and dependable. 
• Timely – It must be current and it must reach the users well in time, so that important decisions can be made in time. 
• Relevant – It should be current and valid information and it should reduce uncertainties. 
• Accurate – It should be free of errors and mistakes, true, and not deceptive. 
• Sufficient – It should be adequate in quantity, so that decisions can be made on its basis. 
• Unambiguous – It should be expressed in clear terms. In other words, in should be comprehensive. 
• Complete – It should meet all the needs in the current context. 
• Unbiased – It should be impartial, free from any bias. In other words, it should have integrity. 
• Explicit – It should not need any further explanation. 

Uses of Information in Business

From a business perspective, there has been a huge shift towards massive automation of business processes and adoption of technology oriented communication. Access to information and capability of information processing by various information systems has helped in achieving greater efficiency in the general operations of business entity.  The following list summarizes the five main uses of information in businesses and other organizations:

• Planning – Here, information is the most important ingredient in formulating business goals and objectives; and draw procedures towards achieving the laid objectives. Information at planning stage may includes information relating to business resources, assets, liabilities, plants and machineries, properties, suppliers, customers, competitors, market and market dynamics, fiscal policy changes of the Government, emerging technologies, etc. 
• Evidence recording – Business processes these days involves recording and capturing of information about each transaction or event that take place. This information is collected, stored, and updated regularly at the operational level. 
• Controlling – A business need to set up an information filter, so that only filtered data is presented to the middle and top management. This ensures efficiency at the operational level and effectiveness at the tactical and strategic level. 
• Measuring performance– An organization success is measured through its performance which relates to the collection and analyzing of sales data, customer feedback, cost of manufacturing, and profit earned etc. 
• Decision-making – MIS is primarily concerned with managerial decision-making, theory of organizational behavior, and underlying human behavior in organizational context. Decision-making information includes the socio-economic impact of competition, globalization, technological orientation, democratization, and the effects of all these factors on an organizational structure. 

Uses of Information in Projects

Information plays a critical role in the successful planning, execution, monitoring, and completion of projects across various industries. Here are some key uses of information in projects:

Project Planning and Initiation:

• Feasibility Studies: Information about market conditions, resource availability, and financial data is used to assess the feasibility of a project.
• Scope Definition: Information is used to define the project’s objectives, requirements, and constraints.
• Risk Assessment: Historical data and industry insights help identify potential risks and uncertainties that the project may encounter.

Resource Allocation:

• Resource Planning: Information about available resources, including personnel, materials, and equipment, is used to allocate resources efficiently.
• Budgeting: Financial data helps create budgets and allocate funds for different project activities.

Task Scheduling:

• Project Timelines: Information about task dependencies, durations, and constraints is used to create project schedules and Gantt charts.
• Resource Allocation: Information helps in scheduling tasks based on resource availability and project priorities.

Monitoring and Control:

• Progress Tracking: Information on task completion, milestones achieved, and performance metrics is used to monitor project progress.
• Issue Identification: Information is used to identify problems, bottlenecks, or deviations from the project plan.
• Quality Control: Data is used to ensure that project deliverables meet predefined quality standards.

Communication:

• Stakeholder Communication: Information is shared with stakeholders to keep them informed about project status, changes, and important developments.
• Team Collaboration: Team members rely on information sharing and collaboration tools to work together effectively.

Decision Making:

• Data Analysis: Information is analyzed to make informed decisions about project changes, resource reallocation, and risk mitigation strategies.
• Change Management: Information helps in evaluating and deciding on changes to the project scope, schedule, or budget.

Documentation:

• Project Documentation: Information is used to create project plans, reports, documentation, and manuals.
• Legal and Compliance: Projects often require documentation to comply with legal and regulatory requirements.

Performance Evaluation:

• KPIs and Metrics: Information is used to define key performance indicators (KPIs) and metrics for evaluating project performance.
• Post-Implementation Review: After project completion, information helps assess the project’s success against its original goals.

Continuous Improvement:

• Feedback and Evaluation: Information is used to gather feedback from stakeholders and team members for continuous improvement.
• Benchmarking: Comparing project performance data with industry benchmarks can highlight areas for improvement.

Thus, information is a fundamental asset in project management, serving as the foundation for planning, execution, monitoring, and decision-making processes. Effective management and utilization of information can significantly contribute to a project’s success.