Identifying and describing how information is used and how it flows in an organization - Essay Example

Identifying and describing how information is used and how it flows in an organization Identifying and describing how information is used and how it flows in an organization Information may be viewed as meaningful data, arrived at after the data has been processed. Information forms a vital part of any organization because it is a key source of alternatives or options that lead to either beneficial or detrimental changes (Stefan & Carsten, 2000). It is only through information that organizations can get the opinion of consumers on their products, their potential in the market, technological advances and employee details.

In present day organizations, computers are the main feature in information processing, where they influence the decisions made, the available information at the time of decision making and when decisions are arrived at. The role of information in organizations is evident in the way they spend as much on systems that aid in business information manipulation as they do on equipment used in direct production of goods. This paper will discover and explain how information is used and how it flows in an organization.

Further, it will use the ABC Appliance Inc. as an example to describe the use and flow of information. Organizations use information to enlighten, educate and provide its management and employees with knowledge that they may use to transform their outlook from what they learn. The information has two directions of flow, which is either vertically or horizontally. Vertical flow takes place between managers, in cases such as the production supervisors communicating with workers of the production line and their managers.

On the other hand, horizontal flow occurs sideways between departments like, for example, between regional production and sales managers in coordinating their sales. The information is processed for the general purpose of reducing uncertainty and resolving equivocal aspects in the sources of information. More specifically, organizations use information to track financial activities in accounting; monitor products in the production line; promote, advertise and sell its products in marketing; recruit and hire personnel and manage them in human resource management; and conduct product and market research (Miller, 2004).

An organization’s requirements in processing information are determined by its organizational structure, task technology and the environment, whereby individual members acquire and process information. In their acquisition of information, the individuals exercise unique biases and preferences that arise by virtue of their being members of the organization (Stefan & Carsten, 2000). Organizations use intranets to disseminate information among its employees within a location and other communications technologies for remote locations.

However, when training has not been undertaken throughout the organization, the benefits of such technologies break down. ABC Appliance Inc. headquartered in Portland, Oregon, is ranked among the top 10 best performing small and medium enterprises (SMEs) in the United States. As a supplier of computers, audio equipment, electronics and home appliances, the organization operates over 40 stores in Indiana, Michigan and Ohio, realizing annual revenues of $338 million with a total workforce of 1,750 staff.

However, with such a large number of employees and branches, the organization has managed to uphold an efficient use and flow of information across its entire network. ABC Appliance Inc. is an example of an organization that has invested in an information system from its formation in 1964. The management involves itself in actively seeking information, therefore setting direction in initiating organizational and individual change. They coordinate employees’ activities using organizational structures that are both formal and informal.

The organization uses formal networks for vertical communication along its hierarchy for information concerning, for example, workplace safety and organizational policies. Informal networks are used among employee groupings who communicate actively with each other. The organization appreciates that although employees or individuals often change, the information structures will remain unchanged for a considerably long time, enabling new staff to ignore some aspects and focus on their respective tasks.

However, all organizations have concerns about controlling the flow of data and keeping it safe from unauthorized use. One major concern is distortion, which arises when information passes through many processes or is handled by too many people before its intended destination. In the process of collecting, processing and distributing information within an organization it is also distorted, both intentionally and unintentionally (Miller, 2004). Sometimes the distortions are in such an amount that they alter the sense of the original information.

Hoarding of information, that is failure to pass it along by persons or systems that collect it for distribution, is another aspect of concern. Malicious staff can also take advantage of technological flaws to access, and abuse, information that was not intended for them. When an organization’s information system is not properly secured, unauthorized users may log into confidential information and expose the organization to the unfair competition. The greatest method to keep away from this is by repeatedly updating the security feature and assigning each user on the system a username and unique password.

A firewall will also protect the system and the organization’s information of external attack. References Miller, W. (2004). Strategy, technology and the American industry. Knopf: New York. Stefan, S., & Carsten, L. (2000). Biased information search in group decision making. Journal of Personality & Social Psychology, 78(4), 655-669.