What is the importance of information in Decision Making?

Information is a basic requirement for decision-making. It significantly determines the effectiveness of not only the final decision but also the process of decision-making itself. Therefore, decision- making is sometimes regarded as the processing and conversion of information into action. Hence timely collection and processing of information is of such great importance—all big concerns now have devised management information system, mostly computer based.

Managers require information to recognise and define problem situations, to develop alternative courses and to select the best alternative. During the course of decision making new information may become available which is to be absorbed. Information helps the managers to have a better view of the decision situations and to reduce the complexity and uncertainty surrounding them. With the availability of information, the problem situation becomes more controllable and manageable.

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