Page 162 - SBL Integrated Workbook STUDENT 2018

Chapter 13

Information flows for management

4.1 Information flows for management

 There should be effective channels of communication within the organisation,
so that all managers receive timely information that is relevant to the
performance of their tasks and duties

 Information should be provided regularly to management so that they can
monitor performance with respect to efficiency, effectiveness in achieving
targets, economy and quality

 Managers need both internal and external information to make informed
business decisions and to report externally

 The actual information provided to management varies depending on the
different levels of management

– Strategic – focussed on planning, predominantly external

– Tactical – focussed on implementation of strategic plans

– Operational – focussed on the operation of specific internal controls

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