Abstract
M.A.
Researchers and futurists like Alvin Toner state that we are currently moving into the information era. In the information economy, information is an alternative source of capital. The role of information in the management of an organisation is being realised by more and more high profile companies and organisations. Information management should form part of top management. Information management does not only consist of the management of information technology. It consists of the whole information spectrum which includes information technology, information services as well as information systems. It implies the management of information as an organisational resource. Many companies and organisations however do not recognise information as a resource. It is therefore not managed as such. In most organisations information management develops in different stages until it reaches a state of maturity. The question arises what the cost implication is if information in this day and age is not managed as a valuable resource. The value of information is often difficult to establish and measure. The value of information depends on its timeliness and usefulness in a specific situation. It is therefore important that the organisation should be aware of the nature of its information resources as well as its location and flow. This can be achieved by a thorough information audit. When the organisation is aware of the extent of its information resources as well as its usage, the relation between cost and value can be determent. A cost-benefit analyses will establish whether the costs spend on information is justified. Because of the intricate nature of information a cost-benefit analyses renders several problems. Its usefulness are often questioned. It goes without saying that where unnessary costs are avoided the organisation will benefit. The process of cost avoidance is seen as a form of cost-benefit analysis. Local government in South Africa is the third tier of government, and currently in a process of change. The principles of Public Administration plays an important part in the management of local government. The absence of the profit motive in local government is often used as a reason why general management principles are not applied. Information plays an important role in local government decision making. An information audit in the Roodepoort Administration identified several important information resources. Through interviews and a case study it was established that information management does not occur on top level. Information is not recognised as a resource. This does not lead to cost avoidance. This study concludes that the Roodepoort Administration is in an early stage of information management, where information technology is managed to a certain degree.
The lack of information management in the Roodepoort administration causes unnessary costs, departmentalisation and duplication of information. The recognisation of information as an organisational resource in the Roodepoort Administration, and in local government as a whole will assure effective and cost-effective decision making and administration. Cost avoidance will lead to accountable administration of communities.