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Information Flow in An Organization in Two Ways

Information flows both vertically between different management levels and horizontally between departments in an organization. Vertically, information flows up and down the management chain from production supervisors to workers and managers. Horizontally, information flows between departments like sales and production coordinating goals. Most organizations have five basic functions - accounting, production, marketing, human resources, and research. There are three management levels - supervisors manage day-to-day operations, middle management implement long term goals and make tactical decisions, and top management focus on strategic planning and long term growth. Each level has different information needs depending on their strategic, tactical, or operational focus.

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608 views4 pages

Information Flow in An Organization in Two Ways

Information flows both vertically between different management levels and horizontally between departments in an organization. Vertically, information flows up and down the management chain from production supervisors to workers and managers. Horizontally, information flows between departments like sales and production coordinating goals. Most organizations have five basic functions - accounting, production, marketing, human resources, and research. There are three management levels - supervisors manage day-to-day operations, middle management implement long term goals and make tactical decisions, and top management focus on strategic planning and long term growth. Each level has different information needs depending on their strategic, tactical, or operational focus.

Uploaded by

krgit
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Information Flow

Information flow in an organization in two ways:


1. Vertically -  Flow up and down among managers
Example: Production supervisors constantly
communicate with with production-line workers and
their own managers.
   
2. 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. Accounting - Keep track of all financial activities.
2. Production - Makes company product.
3. Marketing - Advertises, promotes, ands sells the
product.
4. Human Resources - Finds and hires people and handle
personnel matters.
5. Research - Does product research and relates new
discoveries to the firm's current or new products.

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

   

  

 
Information flow
a. Information must flow in different directions to support
the different information needs of management.
  

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

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