Functional Information
The functional information is defined as a set of information
required by the functional head in conducting the administration and management
of the function. This information is purely local to that function and by
definition, does not have a use elsewhere. This information is used by a manager
to plan and control his function.
Functional information is largely factual, statistical and
detailed in multi-dimensions of the function. For example, if you take the sales
information, it can be processed in seven ways, viz. the product, the product
groups, the market segment, the geographic zones, the locations, the customer,
and the sales organization structure.
The functional information is normally generated at equal
time intervals; say monthly, quarterly, etc. for understanding the trend and
making comparisons against the time scale. Such as information is used for
planning, budgeting and controlling the operations of the function.
The functional information can be assessed on the following
three parameters – the work design, the responsibility and the functional
objectives.
Work Design: For example, for the customer order scrutiny the
available stock, the price, the terms of payment and the probable delivery is an
information set evolved out of the work design of customer order processing.
Responsibility: The
managers in the functional areas of management are responsible for achieving the
targets and accomplishing the goals and objectives. It is, therefore, necessary to inform and
update the information on targets at regular intervals to enable him to make or
change decisions in his domain of operations. Most of these targets are business
targets such as the turnover, production, utilization, stocks and so on.
For example, the marketing manager has a monthly target of $
1 million order booking, half a million invoicing, and not more than two months
receivables. Since, he is
responsible for achieving the targets, it would be necessary to inform him on
these aspects at regular intervals.
This information is used for the responsibility accounting and decision making
for achieving the targets. The manager would be assessed on the basis of
responsibility he discharges in conducting the business.
