Information in Decision Making

Introduction
• - Decision making as a process of selecting the
best course of action from available options
 Good information must have the following
characteristics
• Reliable- It must be verifiable , must come from a reliable
source, and meet the objective of the user.
• Timely- Information must be given on time for the purpose
for which it is needed. Information received too late will be
of use and irrelevant.
• Relevant- It should be of current scenario and valid
information to reduce uncertainties.
• Sufficient/ Adequate- It should be adequate in terms of
quantity , so that decisions can be taken on its basis.
• Unambiguous- It should be expressed in clear terms. In
other words, in should be comprehensive.
 Good information must have the following
characteristics
• Complete- It should meet all the needs in the current
context as partial information is of no use and leads to
wrong decisions.
• Accurate- It means information should be free of errors
and mistakes and true.
• Consistent- Consistent information means that the data
format is correct, or that the data is correct in relation to
other data.
• Explicit- It should not need any further explanation. It
should not require further analysis by the recipients for
decision making.
 Good information must have the following
characteristics
• Comparable/Unique- It should be of uniform collection
and well analyzed . In order to add value to any
organization, information must be unique and distinctive.
• Impartial: Impartial information contains no bias and has
been collected without any distorted view of the situation.
• Unbiased: It should be impartial, free from any bias. In
other words, it should have integrity.
• Cost Effective- The cost of obtaining information must not
exceed the benefits of information in monetary terms.
 Importance of Information in Decision
Making
• Informed Decisions
- Ensuring decisions are based on facts and data rather than assumptions
• Risk Reduction
- Identifying potential risks and uncertainties, and planning accordingly
• Efficiency and Effectiveness
- Streamlining decision-making processes for better outcomes
• Competitive Advantage
- Gaining an edge by responding quickly to market changes
• Problem Solving
- Accurately identifying problems and finding suitable solutions
• Resource Management
- Optimal allocation and utilization of resources
 Sources of Information
• Internal Sources
- Examples: Financial records, sales reports
• External Sources
- Examples: Market research, industry reports
• Primary Sources
- Examples: Surveys, interviews
• Secondary Sources
- Examples: Books, journals
 SOURCES of information
• Formal Resources: Formal sources of information can
come within or outside the organization and include:
– Internal
• Computer system( human resource, accounting, clients,
inventory, purchasing)
• Staff records
• Accounting records
• Annual reports
• Long range planning records
• Company reports
• Business Documents( letters, minutes of meetings)
 SOURCES of information
– External
• Professional Journals
• Books
• Surveys
• Industry & Govt reports
• Informal Sources: Information from informal
sources can include conversations with
colleagues at lunch or from friends or other
associates external to your company.
 SOURCES of information
• Sources of call centre Information:
– Within customer contact centres, you can obtain
information from:
• Automatic Call Distributor( ACD) reports
• Other system reports
• Call monitoring checklists
Formal Informal
Customers Attending meetings
Email Your manager
Human resource Your team
department Colleague
Budgets
Marketing department
Company intranet
Staff memos
 Types of Information
• Quantitative Information
- Numerical data that can be measured and analyzed statistically
- Examples: Sales figures, profit margins
• Qualitative Information
- Descriptive data providing insights into opinions and experiences
- Examples: Customer feedback, employee opinions
• Structured Information
- Organized data in predefined formats
- Examples: Databases, spreadsheets
• Unstructured Information
- Data not following a specific format
- Examples: Emails, social media posts
 Information Requirements with Particular
Reference to Management Levels
• Top-Level Management
- Strategic Information: Long-term, future-oriented data
- Examples: Market trends, economic forecasts
• Middle-Level Management
- Tactical Information: Short to medium-term data
- Examples: Departmental performance reports, project
status updates
• Operational-Level Management
- Operational Information: Day-to-day data
- Examples: Daily sales reports, inventory levels
 Relevance of Information in Decision
Making
• Decision Quality
- Relevant information ensures high-quality decisions based on accurate data
• Timeliness
- Timely information allows for decisions to be made at the right moment
• Cost-Effectiveness
- Prevents information overload and reduces processing costs
• Focus
- Ensures focus on critical aspects affecting organizational performance
• Adaptability
- Allows organizations to respond quickly to changes
• Alignment
- Ensures decisions align with organizational objectives and resources
 Conclusion
• Summary of key points
- Importance of information in decision making
- Various sources and types of information
- Information requirements at different
management levels
- Relevance of timely and relevant information
• Encouragement to utilize information
effectively
 Q&A
• • Questions?
• • Thank you for your attention!