Kuali Case; Information Flow


KualiCase Information Flow

KualiCase Information Flow

Anorganization is a dynamic structure that involves the interaction ofall its components. For an organization to function and operate in adynamic way, information needs to flow within and without theorganizational structure (Koontz,2010).One of the main types of information shared in an organization isfinancial data that reflects on the position and performance of everysection of the organization. The flow of information in anorganization occurs in the following aspects horizontal flow,vertical flow, downward flow and inward-outward flow. The analysis ofthe Kuali Foundation will explore the discussion on these types ofinformation flow, especially financial information.


Thisflow involves passing of information among members of an organizationat the same level of the organization structure. These levels can beacross members of technical and tactical teams, working groups,between division and units (Koontz,2010).The data shared in this flow of information involve technical datasuch as sales, prices, revenue amounts, voucher numbers andaccounting values within a department (Kuali Financial System, 2012).According to Mcneelyand Wheeler (2013),such information will be shared to enable a department to operateoptimally and in integration. The horizontal flow of information isimportant because it enables people in the organizational level towork together. Therefore, the flow of information horizontally is themost effective operational tool of organizational structure.

VerticalInformation flow

Informationflow from one organizational level to a higher level of in theorganizational structure is what defines the vertical informationflow (Koontz,2010).In an organization, most of the data involved in the VerticalInformation flow of information is the correspondence to the seniorsby the junior members of the organization (Mcneely &amp Wheeler,2013). The data passed is financial reports, response to memos andauditing reports, accruing to the platforms of the Kuali financialsystems. For instance, an accountant will pass a completed balancesheet of income statement to the seniors for evaluation based on thefinancial vouchers used. This makes the vertical information flow anintegral element of making higher levels and lower levels coordinatein an organization.

Downwardinformation flow

Thisflow of information involves passing of information from members ofan organizational level to members at a lower level in theorganizational structure. According to the Kuali financial systems(2012) model, the flow of information typically involvescommunication from the seniors in an organization to the juniors. Forinstance, instructions by a manager directed to an accounting clerkrequesting a financial report of an event. The type of data involvedin this flow of information is instructions, raw financial data,directives, vouchers, expenditure details, official memos, managementletters and raw financial statements.


Thisflow involves sharing of information between the organization and theoutside stakeholders. The flow of information may involve receivingof information into the organization or passing of information toother parties that are not part of the internal organizationalstructure. Examples of such flow of information involve thecommunication between the organization and its customers, suppliersand government agencies. According to the Kuali financial systems,this information flow involves financial data that relates toorganizational business operations such as purchase payments, salesinformation and human resource information. This flow enables theoperations of an organization in an interdependent environment. Dueto the data shared, this type of information flow makes theorganization an interactive entity with reference to externalparties.


Koontz,H. (2010). EssentialsOfManagement 8E.Noida,UP:TataMcGraw-Hill Education.

KualiFinancial System, 2012. Chartof Accounts.RetrievedFrom, &lthttp://www.kuali.uci.edu/kfs/Presentation_COAOverview.ppt&gtJune 13, 2014

Mcneely,T. K., &amp Wheeler, M. S. (2013). AFlexible Financial System.&nbspRetrieved From,&lthttp://www.nacubo.org/Business_Officer_Magazine/Magazine_Archives/February_2006/A_Flexible_Financial_System.html&gtJune13, 2014