MIS - Classification of Information
Information can be classified in a number of ways and in this chapter, you will learn two of
the most important ways to classify information.
Classification by Characteristic
Based on Anthony's classification of Management, information used in business for
decision-making is generally categorized into three types −
Strategic Information − Strategic information is concerned with long term policy
decisions that defines the objectives of a business and checks how well these
objectives are met. For example, acquiring a new plant, a new product,
diversification of business etc, comes under strategic information.
Tactical Information − Tactical information is concerned with the information
needed for exercising control over business resources, like budgeting, quality
control, service level, inventory level, productivity level etc.
Operational Information − Operational information is concerned with plant/business
level information and is used to ensure proper conduction of specific operational
tasks as planned/intended. Various operator specific, machine specific and shift
specific jobs for quality control checks comes under this category.
Classification by Application
In terms of applications, information can be categorized as −
Planning Information − These are the information needed for establishing
standard norms and specifications in an organization. This information is used in
strategic, tactical, and operation planning of any activity. Examples of such
information are time standards, design standards.
Control Information − This information is needed for establishing control over all
business activities through feedback mechanism. This information is used for
controlling attainment, nature and utilization of important processes in a system.
When such information reflects a deviation from the established standards, the
system should induce a decision or an action leading to control.
Knowledge Information − Knowledge is defined as "information about information".
Knowledge information is acquired through experience and learning, and collected
from archival data and research studies.
Organizational Information − Organizational information deals with an
organization's environment, culture in the light of its objectives. Karl Weick's
Organizational Information Theory emphasizes that an organization reduces its
equivocality or uncertainty by collecting, managing and using these information
prudently. This information is used by everybody in the organization; examples of
such information are employee and payroll information.
Functional/Operational Information − This is operation specific information. For
example, daily schedules in a manufacturing plant that refers to the detailed
assignment of jobs to machines or machines to operators. In a service oriented
business, it would be the duty roster of various personnel. This information is
mostly internal to the organization.
Database Information − Database information construes large quantities of
information that has multiple usage and application. Such information is stored,
retrieved and managed to create databases. For example, material specification or
supplier information is stored for multiple users.
