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Organization and Information Requirements

Organization & Information Requirements

Organizations have various attributes which distinguish them from each other. No two organizations are
similar in all respects. There have to have certain distinctive lines keeping them unique from each other.
Information requirements keep varying in accordance with
Size of organization
Its structure
The Culture it follows
Decision Making Structures
Interested parties both internal and external
An organization should consider the above mentioned requirements while devising a system which tailors
for specific information needs.

3.1 Size of the Organization and Information Requirements
3.1.1 Small Organizations
Small organizations usually have simple management structure. The need invariably grows from the limited
scope and operations of management. Since tasks to be handled are usually limited and manageable, hence
need for introducing more levels is not required. Since operations can be managed at the top level by one or
two members of the senior management, officers from the lower level of management are not usually
involved in decision making. Hence the final decisions are centrally taken.
Information flows and formats are easy to define and change. Since information requirements are not
extensive, number of documents prepared and generated will also be few in number. Mostly the interested
party itself is running the business, hence the management is centralised to few people.

Examples of Information requirements of Small Organizations
Day to day transactions
Daily Sale
Cash management
Receivables and Payables

3.1.2 Medium Sized Organizations
Medium Sized organizations are normally a family ownership run by brothers, father-son. There are many
organizations existing these days which are being run by the family members. The prime concern may be
the trust already fostered among the blood relations but this might give rise to informal relationship among
them. Since all critical managerial positions are usually controlled by the family members, information is
structured only to the extent of external reporting. The level of reporting that could meet the information
needs of the clients is best suited for such an organization.
Medium sized organizations are run under direct supervision of the family members which rarely extends to
segregation of duties and delegation of authority.
Centralized decision making
Above mentioned structure rarely changes with complexity and dynamism of environments.

Information Requirements of Medium Sized Organizations
As size of the organization increases, the importance of planning for information also increases. The
planning on long-term basis also helps in monitoring of information against planning

3.1.3 Large Organizations
Usually such organizations are characterized by large scale of operations. Various criteria can be used for
this purpose.
Number of employees
Amount of turnover
Number of branches
Profit size
Value of assets
Number of businesses the organization is working in
With such large size of organizations, management structure needs to be multi- tiered for efficient and
strong control. This leads to formulation of many departments, management levels, designations,
promotional opportunities and salary increments.

Public companies
Information Requirements of Large Organizations
With such a large structure, it is inevitable that the detailed planning should be made for proper
management control, for both short term and long term.
Performance measurement against plans / targets

Nature of the Business and Information Requirements
Manufacturing Sector
Service Sector
Trading Sector

1. Manufacturing Sector
Manufacturing process involves more than one sub-processes, detailed information is required before
transferring materials for warehousing, manufacturing and sale to final consumer.
Information Requirements of Manufacturing Sector
Management is concerned with the day to day costs, production targets, quality of the product, delivery
schedules, etc.

2. Service Sector
Final product is intangible, so information is critical at various steps, e.g. preparation, delivery and customer
satisfaction. Quality maintenance is an issue which requires structured reporting.

Information requirements of Service Sector
Quality of service provided.
Mode of delivery
Customer Satisfaction
Time Scheduling
Resource Management

Trading Sector
Monitoring requires information for each product, e.g.
Customer profiles
Customer Comments
Volume of sales
Stock movements Manufacturing/Procurement Cycle
Market needs

3.2 Nature of Business & Information Requirements
As the size of organization and scale of operations change, information requirements need to be adjusted
for better monitoring to keeping things in control.

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