Classification of Information

Information classification is a process in which organizations assess the data that they hold and the level of protection it should be given.

Organizations usually classify information in terms of confidentiality i.e. who is granted access to see it. A typical system will include four levels of confidentiality:

• Confidential (only senior management have access)
• Restricted (most employees have access)
• Internal (all employees have access)
• Public (everyone has access)

As you might expect, larger and more complex organizations will need more levels.

Take hospitals, for example: doctors and nurses need access to patients’ medical histories, which are highly sensitive, but they shouldn’t have access to other types of information that would fit that criteria, such as the hospital’s financial records.

Classification by Characteristic

Based on Anthony’s classification of Management, information used in business for decision-making is generally categorized into three types:

1. Strategic Information

Strategic information is concerned with long term policy decisions that defines the objectives of a business and checks how well these objectives are met. For example, acquiring a new plant, a new product, diversification of business etc, comes under strategic information.

2. Tactical Information

Tactical information is concerned with the information needed for exercising control over business resources, like budgeting, quality control, service level, inventory level, productivity level etc.

3. Operational Information

Operational information is concerned with plant/business level information and is used to ensure proper conduction of specific operational tasks as planned/intended. Various operator specific, machine specific and shift specific jobs for quality control checks comes under this category.

Classification by Application

In terms of applications, information can be categorized as:

1. Planning Information

These are the information needed for establishing standard norms and specifications in an organization. This information is used in strategic, tactical, and operation planning of any activity. Examples of such information are time standards, design standards.

2. Control Information

This information is needed for establishing control over all business activities through feedback mechanism. This information is used for controlling attainment, nature and utilization of important processes in a system. When such information reflects a deviation from the established standards, the system should induce a decision or an action leading to control.

3. Knowledge Information

Knowledge is defined as “information about information”. Knowledge information is acquired through experience and learning, and collected from archival data and research studies.

4. Organizational Information

Organizational information deals with an organization’s environment, culture in the light of its objectives. Karl Weick’s Organizational Information Theory emphasizes that an organization reduces its equivocality or uncertainty by collecting, managing and using these information prudently. This information is used by everybody in the organization; examples of such information are employee and payroll information.

5. Functional/Operational Information

This is operation specific information. For example, daily schedules in a manufacturing plant that refers to the detailed assignment of jobs to machines or machines to operators. In a service oriented business, it would be the duty roster of various personnel. This information is mostly internal to the organization.

6. Database Information

Database information construes large quantities of information that has multiple usage and application. Such information is stored, retrieved and managed to create databases. For example, material specification or supplier information is stored for multiple users.