In this information age, information literacy and its management has gained importance with the rapidly changing technological environment and proliferation of information resources. Information literacy and its management became significant for students, academicians, and professionals involved in Higher Education especially in terms of need, access and preservation. Information in the higher education system is available through libraries, community resources, and internet along with various other resources in a much unfiltered form. This research paper provides an insight of 'Probability', 'Expertise', 'Efficiency' and 'Accountability' of information management in Higher Education Institutions in order to 'Identify', 'Classify' & 'Rectify' the information. Further this paper examines the flow of information at different levels and the importance of information literacy for information management in Higher Education Institutions (HEIs).