Information Management
Updated: May 10, 2007
Definition: Information management is the collection and management of information from one or more sources and distribution to one or more audiences who have a stake in that information or a right to that information. Management here means the organization of and control over the structure, processing and delivery of information
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Information Management (IM) is characterized by the phrase 'Getting the right information to the right person at
the right place at the right time'. It does not, however, address the question of what constitutes the 'right information'.
This omission can be addressed through the philosophy of Informational management (IM). IM is characterized by the phrase,
'Knowing what information to gather, knowing what to do with information when you get it, knowing what information to pass
on, and knowing how to value the result'. This identifies the 'right information' and the resulting whole solution is worth
more than the sum of its parts
Concepts
Following the behavioral science theory of management, most of what goes on in organizations is actually decision making and information processes. The crucial factor in the information and decision process analysis is thus individuals’ limited ability to process information and to take decisions under these limitations
Consequently, strategies for organization design must be aiming at improved information processing capability.
The following are five main organization design strategies within two categories - increased information processing capacity and reduced need for information processing
Reduction of information processing needs
 Environmental management
Creation of slack resources
Creation of self-contained tasks
Increasing the organizational information processing capacity
Creation of lateral relations
Vertical information systems
Environmental management
Instead of adapting to changing environmental circumstances, the organization can aim at modifying its environment. Vertical and horizontal collaboration, i.e. cooperation or integration with other organizations in the industry value system are typical means for reducing uncertainty. An example for reducing uncertainty in the relation with the prior or demanding stage of the industry system is the concept of Supplier-Retailer collaboration or Efficient Customer Response.
Creation of slack resources
In order to reduce exceptions, performance levels can be reduced, thus decreasing the information load on the hierarchy. These additional slack resources, required to reduce information processing in the hierarchy, are representing an additional cost to the organization and the choice of this method is clearly depending on the alternative costs of other strategies.
Creation of self-contained tasks
Achieving a conceptual closure of tasks is another way of reducing information processing. In this case, the task-performing unit has all the resources required to perform the task. This approach is concerned with task (de-)composition and interaction between different organizational units, i.e. organizational and information interfaces.
Creation of lateral relations
In this case, lateral decision processes are established that cut across functional organizational units. The aim is to apply a system of decision subsidiarity, i.e. to move decision power to the process, instead of moving information from the process into the hierarchy for decision-making.
Investment in vertical information systems
Instead of processing information through the existing hierarchical channels, the organization can establish vertical information systems. In this case, the information flow for a specific task (or set of tasks) is routed in accordance to the applied business logic, rather than the hierarchical organization.
Following the lateral relations concept, it also becomes possible to employ an organizational form that is different from the simple hierarchical information. The Matrix organization is aiming at bringing together the functional and product departmental bases and achieving a balance in information processing and decision making between the vertical (hierarchical) and the horizontal (product or project) structure. The creation of a matrix organization can also be considered as management's response to a persistent or permanent demand for adaptation to environmental dynamics, instead of the response to episodic demands.
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