Planning framework in organisations and information flows within management control


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In today’s world information is considered as important as other factors like capital, human resources and material. But the most important task is finding the right information which can support the business process and work task (Kurt Sandkuhl, 2007). The right information available to the right person and on the right time can make a significant difference in the work tasks and business processes in an organisation; in fact if the right information is not available to the user then he has to spend more time on looking for the information, eventually it causes delays and increases cost. Chapter One

1.1. Blackground of study

In today’s world information is considered as important as other factors likecapital,   human   resources   and   material.   But   the   most   important   task   isfinding the right  information  which can support the business process andwork task (Kurt Sandkuhl, 2007). The right information available to the rightperson and on the right time can make a significant difference in the worktasks   and   business   processes   in   an   organisation;   in   fact   if   the   rightinformation is not available to the user then he has to spend more time onlooking for the information, eventually it causes delays and increases cost.The classical  economics theories suggest that  there are four factors ofproduction: labor, raw materials, capital and land. However, in this day andage   it   is   essential   to   include   information   as   the   fifth   factor   (Bozarth,Hanfield, 2005). The information in an orgainsation is used as a basis fordecision making, as well as to execute and control the daily operations. Itcould be said that neither physical nor monetary flows could be possiblewithout information flows. (Bozarth, Hanfield, 2005). The process of communication can be defined as “Transferring informationand understanding from one person to another.”( Naylor 2002: 149). The

purpose of good communication is to ensure that the recipient interpretsthe information the way it was intended. John Naylor describes the processof communication in the following way:

five chapters

Planning framework in organisations and information flows within management control
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