Managers need information for three reasons: to make effective decisions, to control the activities of the organization, and to coordinate the organization’s activities.
Most of management is about making decisions
To make effective decisions, managers need information both from inside the organization and from external stakeholders
Managers’ ability to make effective decisions rests on their ability to acquire and process information.
Controlling is the process whereby managers regulate how efficiently and effectively an organization is performing the activities necessary to achieve organizational goals.
Managers achieve control over organizational activities by taking four steps:
a. They establish measurable standards of performance or goals.
b. They measure actual performance.
c. They compare actual performance against established goals.
d. They evaluate the result and take corrective action if necessary.