The characteristics of good information

The characteristics of good information

The word data and information used interchangeable; however, there is huge difference between information and data. Information is extracted from the processing of data, and it is only information which can be used in performing management function.

The following are the important characteristic of information

1.       Reliable: - The information is extracted from a source which can be trusted ,otherwise wrong information will result in wrong decision. for example that you are getting information from a accounting software or production software so you must be sure that reports generated by the software are accurate and therefore can be trusted. The reliable information mean that source from which information is being extracted can be trusted.

2.       Accurate: - The information must be accurate, it means that information must be free from mistakes. some time information is prepared in hast which may result in many mistakes in the information.it is important to remember that sometime management may be interested in reasonable accurate information because to get 100% accurate information may be time consuming job.

3.       Timely: - The information must be provided in time. in business world timely information is essential requirement for the decision making. for example the management can only control the cost if the information is available in time if the information about the costs are provided at the end of project then it is of no use. The frequency of information provision vary from situation to situation.

4.       Cost effective :- The information must be cost effective. There is close relationship between quality of information and its cost normally more sophisticated and accurate information cost you a lot. for example if you need a different reports for your production process , this may require a huge investment in a software because only a quality software can generate an accurate report of complex process of production.

5.       Relevant: - The information must be relevant to the management needs. This is very important to know the information needs of the management. for example if management interested in cost control then management shall require more and more information about cost structure and patterns.The details reporting of revenue and less reporting of cost shall not serve the purpose because management need more structured information about cost.

6.       User Friendly: - The information must be provided in form and format which can be easily understood. The user friendly information can be defined as self explanatory information . User friendly information does not require any involvement of the person who prepare information.