Information
Information is well-organized data which we get after processing of data, numeric data and it helps in decision making. It is processed data that is organized, meaningful, and useful.
Thus, information in its unprocessed form is called data, which is generated as a by-product of transactions taking place in the organization. Information, on the other hand, is processed data and has an element of surprise, Information reduces uncertainty and triggers action.
2 style="text-align: left;">Characteristics of Information
i) Accuracy
The information must be accurate, which means that the information which is totally correct, free from mistakes, and errors. If any information is accurate then decision-making is possible from the information in a short period of time.
ii) Form
Information is of value if it is provided to the user in the form it is useful and best understood by him, For example, in a business enterprise, top management may require information on key matters in a summarized form and the operation managers in a detailed form.
iii) Relevance
It refers to the current utility of information in decision-making or problem-solving. Thus, information gains in value if it is relevant.
iv) Timeliness
It means that information should be made available when it is needed for a particular purpose and not before and in any case not after.
v) Completeness
Information is considered complete if it tells its user all that he wishes to know about a particular situation/problem. The more than the completeness of information, the higher is its value.
vi) Purpose
The information must have a purpose at the time it is transmitted to a person or machine, otherwise, it is simply data.
vii) Reliability
The information should be reliable and the external force relied upon indicated.
viii) Validity
It measures the closeness of the information to the purpose.
The Need of Information
i) Information is useful for making-decision
ii) Information helps managers or users in lowering the level of uncertainties where they have to make a choice among several available alternatives.
iii) The information helps the users in tackling problems relating to their respective functional areas.
iv) Information is used by top management to plan the objectives of the organization and to access whether the objectives are being met in practice.
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