Characteristics of Useful Information

Meaning of Information System

Information refers to the collection of facts & figures that has some meaning. In simple words, it is an organised set of data. Information is a data which is reliable, consistent, complete & timely. Information plays a very important role in taking decisions.

Knowledge is derived after understanding a particular set of information. Managers are completely dependent on information for their roles. Information is encoded in several ways for safe communication between 2 parties. For information to be effective, it should ensure that it is accurate & reliable. False information may lead to wrong & inappropriate actions.

Some of the important characteristics of Useful information are discussed below

Characteristics of Useful Information

Characteristics of Useful Information
Characteristics of Useful Information


Information should be complete in sense. It should contain all facts & figures as required by the user. Unless it contains all details, it is not useful. Complete information enables managers to make better decisions.

Incomplete information may lead to wrong decisions. Information should be collected from all the sources & provided for decision making.


It is one of the important features of information. It refers to the cost involved in the collection of information. The cost of collection should be within the decided set limit.

High-cost information may affect the budget of an organization. Efforts should be made to acquire the information at a reasonable rate.


Information collected should be reliable & correct. It should contain complete facts & figures. The sources of information collected should be reliable.

True information plays an effective role in better decision-making. The quality of information determines its usefulness. Wrong information may lead to wrong actions.


Information should be relevant to the problem for which it is collected. It should be suitable for the problem for which it is collected.

It should contain complete detail regarding a particular issue. Relevant information is beneficial for managers for decision-making. It helps in better understanding of issues & easy solving.

Easily understood

Information should be presented in an easy & understood way. It should be understood by all. The simpleness & easiness of information is one of its best quality.

It helps in quick interpretation & decision-making. Easy information saves times and enables fast actions.


Information should be available as & when required. If information is not available timely, it is of no use. It should be available at the right time to the right person. Information collected before time may become obsolete & become non-useful.

The timing of collection & presentation of information should be appropriate. It will enable the manager to take actions at the right time.

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