Wednesday, October 8, 2014

DECISION MAKING PROCESS | What is the use of internal & external information in organizations?

What is the use of internal and external information in organizations?

1 comment:

  1. Answer:

    At the organization’s boundaries, information in the external environment is accessed. Managers use intelligence information to deal with customers, competitors, and other stakeholders such as government agencies, creditors, suppliers, and stockholders.

    Organizations also send vast amounts of public information to stakeholders and the external environment. This often takes the form of advertising, public relations messages, and financial reports that serve a variety of purposes, ranging from image-building to product promotion to financial documentation.

    Within organizations, people need vast amounts of internal information to make decisions and solve problems in their daily work. They need information from their immediate work setting and from other parts of the organization. Internal information flows downward in such forms as goals, instructions, and feedback; it flows horizontally in ways that assist in cross-functional coordination and problem solving; and it flows upward in such forms as performance reports, suggestions for improvement, and even disputes. The ability of technology to gather and move information quickly within an organization can be a great asset to decision making. It helps top levels stay informed, while freeing lower levels to make speedy decisions and take the actions they need to best perform their jobs.

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