SlideShare uma empresa Scribd logo
1 de 29
Baixar para ler offline
Chapter II


                                 Chapter 2:
                Information, Management and Decision Making:

 Part A ( 1.5 hours) –
 Models of Decision Making - Classical, Administrative and Herbert Simon's
     Models

  Part B (1.5 hours) - Attributes of information and its relevance to Decision
      Making - Types of information
Chapter II


                               Chapter 2:
              Information, Management and Decision Making:

 Part A ( 1.5 hours) –
 Models of Decision Making - Classical, Administrative and Herbert Simon's
     Models
Decision Making


 • Decision: a reasoned choice among alternatives
 • Examples:
    – Where to advertise a new product
    – What stock to buy
    – What movie to see
    – Where to go for dinner
 Decision Making: a process of choosing among
   alternative courses of action for the purpose of
   attaining a goal or goals

 • Decision making vs. problem solving?

 • ART or SCIENCE?



                                                      3
Business Decision Aspects



                 Typical Business Decision Aspects
    •   Decision may be made by a group
    •   Several, possibly contradictory objectives
    •   Hundreds or thousands of alternatives
    •   Results can occur in the future
    •   Attitudes towards risk
    •   “What-if” scenarios
    •   Trial-and-error experimentation with the real system: may result
        in a loss
    •   Experimentation with the real system can only be done once
    •   Changes in the environment can occur continuously




                                                                           4
LEVELS OF DECISION MAKING



  1.     STRATEGIC: Long-term objectives; resources; policies

  2.     MANAGEMENT CONTROL: Monitor use of resources; performance

  3.     KNOWLEDGE-LEVEL: Evaluate potential innovations; knowledge

  4.     OPERATIONAL: How to carry out specific day-to-day tasks




  4.19
Nature of Decision


        • Structured Problems
            – Routine and repetitive with standard solution
            – Well defined decision making procedure
            – Given a well-defined set of input, a well defined set of output is
              defined
        • Semi-structured Problems
            – Has some structured aspect
            – Some of the inputs or outputs or procedures are not well defined
        • Unstructured Problems
            – All phases of decision making process are unstructured
            – Not well defined input, output set and procedures


                                                                           6
Decisions Types

Following are the types of Decision
1. Programmed/Structured Decisions
2. Semi Programmed/Structured Decision
3. Non Programmed Decisions
        Structured
                                            Unstructured



         Level of decision making - Scope

                          Strategic

                  Managerial

            Operational



                                                           7
Programmed/Structured Decisions


 Nature of Programmed/ Structure       Techniques used for taking these
 Decision:                             decision:

 1.   They are Routine/Structure       1.   Habit
 2.   They are repetitive/short term   2.   Standard Operating Procedures
 3.   Definite procedure is to be           (SOP)
      followed                         3.   Organizational
 4.   There are laid down norms             Hierarchy/structure
 5.   Situations are known             4.   Operational research
 6.   They are taken at lower or       5.   Computers
      operating levels in the
      organization.
Semi Programmed/Structured Decision




   • SEMISTRUCTURED: One or more factors not
     structured; risk
Non -Programmed/un-structured Decisions


  Nature of Non-programmed/               Techniques used for taking these
  unstructured Decision:                  decision:

  1.   Innovative                         1.   Judgment
  2.   New/complex situations             2.   Intuition
  3.   Important and critical             3.   Business acumen
  4.   Strategic                          4.   Complex/ specially designed
  5.   Long- term                              computer programmes
                                          5.   Training executives
INFO SYSTEMS, LEVE, DECISIONS


                               ORGANIZATIONAL LEVEL
    TYPE OF
    DECISION     OPERATIONAL        KNOWLEDGE          MANAGEMENT      STRATEGIC

STRUCTURED        ACCOUNTS
                  RECEIVABLE
                                    ELECTRONIC          PRODUCTION
                                    SCHEDULING        COST OVERRUNS
                    TPS
                                      OAS                 MIS

SEMI-                                                    BUDGET
STRUCTURED                                             PREPARATION

                   PROJECT                               DSS
                  SCHEDULING

                                                         FACILITY
                                                        LOCATION
                                      KWS                               ESS

UNSTRUCTURED                      PRODUCT DESIGN                      NEW PRODUCTS
                                                                      NEW MARKETS
Decision Making Process


  1.   Recognizing and defining the situation
  2.   Identifying alternatives
  3.   Evaluation alternatives
  4.   Selecting the best alternative
  5.   Implementing the chosen alternative
  6.   Follow-up and evaluation
INDIVIDUAL MODELS OF DECISION MAKING



 1.   RATIONAL: Comprehensive rationality; evaluate all alternatives

 2.   SATISFICING: Bounded rationality; choose first “good” alternative

 3.   MUDDLING (mixed/confused): Successive comparison; marginal changes

 4.   PSYCHOLOGICAL: Cognitive types; manages differ in how they make
      choices
ORGANIZATIONAL MODELS OF DECISION MAKING/ Decision Making Styles



1.   RATIONAL ACTOR: Maximize organization’s benefits

2.   BUREAUCRATIC: Follow standard operating procedures (SOP)

3.   POLITICAL: Key groups compete and bargain

4.   “GARBAGE CAN”: Organizations not rational; solutions accidental

5.  Heuristic: is a method to help solve a problem, commonly an informal method. It is
    particularly used to rapidly come to a solution that is reasonably close to the best possible
    answer, or 'optimal solution'.
6. Analytic
7. Autocratic
8. Democratic
9. Consultative (with individuals or groups)
10. Combinations and variations
Decision Making Models


 A.   Classical Model: Collecting all required information and taking the decision in
      the best interests of the organization.

 B.   Administrative Model: Collecting all required information and taking the
      decision may not be in the best interests of the organization but it will be in the
      best interest of managers.

 C.   Herbert Simon Model:
The Herbert Simon’s Model

  The decision Making process consists of following phases:
  1. Intelligence phase: thinking of the problem as it comes
       a) Societal Environment
       b) Competitive Environment
       c) Organizational Environment
  2. Design Phase: this consists for inventing, developing and analyzing the likely solutions
       a) Understanding the problem
       b) generating the solution
       c) Testing the feasibility of solution
  3. Choice Phase: Selecting the specific alternative or solution
  4. Implementation : Put decision into effect; allocate resources; control
                                                    *
  Relevance of this model:
  1) Provide the decision process
  2) It provide the base for designing the MIS

  Limitation of this model:
  1) It is specifies the decision process and will not go beyond choice
  2) This model does not includes the feedback phase and corrective action.
Chapter II


                                Chapter 2:
               Information, Management and Decision Making:

  Part B (1.5 hours) - Attributes of information and its relevance to Decision
     Making - Types of information
Information

David and Olson Defines,
  “Data that has been processed into a form that is
  meaningful to the recipient and it is of real or
  perceived value in current or prospective actions or
  decisions”



        INPUT           PROCESS          OUTPUT


                        FEEDBACK
Overview




  Information Systems help companies achieve
   their goals.

  How do they do it?

 1. By processing raw data into information
 2. IS can add value to information by enhancing
    the attributes (11 of them).
11 Attributes of Information



       Usability                               Delivery
                                                 1. Timely
  1.   Relevant
                                                 2. Accessible
  2.   Simple
                                                 3. Secure
  3.   Flexible
  4.   Economical
                               Quality
                               1. Accurate
                               2. Verifiable
                               3. Complete
                               4. Reliable
Information Spectrum




 • Data  processing  Information
 • Information  intelligence  Knowledge
 • Knowledge  experience  Wisdom
Information Process

  1. Capturing - recording of events and transactions
  2. Verifying - validation and checks for correctness
  3. Classifying – specific categories
  4. Arranging/Sorting – building sequencing
  5. Summarizing – combining and aggregate
  6. Calculating –Arithmetical and logical computation
  7. Storing –storage media
  8. Retrieving – searching and accessing the information
  9. Reproducing – duplicating or copying of data.
  10.Communication – transferring the data from one to another
  11.Deleting/purging – removal or deleting the data
Types of Information


 A.   Hierarchical
 1.   Information needed for Strategic Level
 2.   Information needed for Tactical Level
 3.   Information needed for Operational Level

 B . Planning and Controlling Perspective
 1. Information needed for Planning
 2. Information needed for Controlling
 3. Information needed for solving problems
 4. Information needed for execution
Sources of Information


  1.    Primary Source :
       a) First hand information received directly from the users, customers,
            employees ( survey , meeting, discussion, interviews etc.)

  2.   Secondary Sources
       a) Published :Government publications, Journals, Newspapers,
          Monographs and textbooks, Reference works, Audio Visual, Electronic
          media etc
       b) Unpublished: Human sources, Dissertations / Theses, Reports, Grey
          literature, Information on the Internet Email
Human as information Processor




                                  memory




    Input from                                              Output
                                   Mental     Channels
      Sensory        Channels                              response
                                 Processing
     Receptors




                 Inputs                                  Outputs
Computer information processing system




                                   storage




            input                 Processor   output
Functions of an Information System
Information requirement

Information requirement is a detailed statement of the information needs that a system must
satisfy. It involves identifying who needs what information, where, when and how.

Information required at different level in the organization:
     1. Organizational Level information requirements - Organization level information for
          planning, controlling and managing purpose. To get the information we need to
          a) Defining sub-systems,
          b) Developing managers sub system , and
          c) Defining and evaluating the information requirement by sub system
     2. Data Base Requirements: Organizing and defining the data class, data types in the
          computer system
     3. Application level information requirements: Unit level , department level, process level,
          information, form level information.
         a) Behaviors or role based requirements
         b) Technical requirements
Techniques for Assessing information Requirements



   1.   Asking questions

   2.   Deriving From an existing information system

   3.   Ends-means analysis : analyzing the end use of the information and then getting
        the information requirements

   4.   Critical Success Factors (CSFs): Collecting all the factors affecting and then collect
        the information requirement

   5.   Business System Planning (BSP): this is the organization wise information
        requirements which includes all units, functions, processes and data elements.

Mais conteúdo relacionado

Mais procurados

Decision Making and Information Systems
Decision Making and  Information SystemsDecision Making and  Information Systems
Decision Making and Information SystemsAriful Saimon
 
Business Process Re-engineering
Business Process Re-engineeringBusiness Process Re-engineering
Business Process Re-engineeringrinkimusaddi
 
Decision Support Systems
Decision Support SystemsDecision Support Systems
Decision Support SystemsShigem
 
Characteristic of management information system
Characteristic of management information systemCharacteristic of management information system
Characteristic of management information systemManoj Kumar
 
Business Process Re-engineering (BPR): Role of IT
Business Process Re-engineering (BPR): Role of ITBusiness Process Re-engineering (BPR): Role of IT
Business Process Re-engineering (BPR): Role of ITAbhinav Johnson
 
Introduction to Business Analytics
Introduction to Business AnalyticsIntroduction to Business Analytics
Introduction to Business AnalyticsDr. Amitabh Mishra
 
Transaction processing system (TPS)
Transaction processing system (TPS)Transaction processing system (TPS)
Transaction processing system (TPS)Jaisha Jaikishan
 
History Of Production Operations Management (POM)
History Of Production Operations Management (POM)History Of Production Operations Management (POM)
History Of Production Operations Management (POM)Mudassar Salman
 
Application of business analytics
Application of business analyticsApplication of business analytics
Application of business analyticsVinay-Ramachandra
 
Business process reengineering
Business process reengineeringBusiness process reengineering
Business process reengineeringNeelkamal Sharma
 
Management information system ( MIS )
Management information system ( MIS )Management information system ( MIS )
Management information system ( MIS )QualitativeIn
 
Functional information system
Functional  information systemFunctional  information system
Functional information systemamazing19
 
Security & control in management information system
Security & control in management information systemSecurity & control in management information system
Security & control in management information systemOnline
 
Business policy & Strategic Management for MBA
Business policy & Strategic Management for MBABusiness policy & Strategic Management for MBA
Business policy & Strategic Management for MBAUlhas Wadivkar
 
SECURITY & CONTROL OF INFORMATION SYSTEM (Management Information System)
SECURITY & CONTROL OF INFORMATION SYSTEM (Management Information System)SECURITY & CONTROL OF INFORMATION SYSTEM (Management Information System)
SECURITY & CONTROL OF INFORMATION SYSTEM (Management Information System)Biswajit Bhattacharjee
 
FORMAL & INFORMAL INFORMATION SYSTEM
FORMAL & INFORMAL  INFORMATION SYSTEMFORMAL & INFORMAL  INFORMATION SYSTEM
FORMAL & INFORMAL INFORMATION SYSTEMZahid Parvez
 

Mais procurados (20)

Decision Making and Information Systems
Decision Making and  Information SystemsDecision Making and  Information Systems
Decision Making and Information Systems
 
Business Process Re-engineering
Business Process Re-engineeringBusiness Process Re-engineering
Business Process Re-engineering
 
Decision Support Systems
Decision Support SystemsDecision Support Systems
Decision Support Systems
 
Characteristic of management information system
Characteristic of management information systemCharacteristic of management information system
Characteristic of management information system
 
Business Process Re-engineering (BPR): Role of IT
Business Process Re-engineering (BPR): Role of ITBusiness Process Re-engineering (BPR): Role of IT
Business Process Re-engineering (BPR): Role of IT
 
Introduction to Business Analytics
Introduction to Business AnalyticsIntroduction to Business Analytics
Introduction to Business Analytics
 
Transaction processing system (TPS)
Transaction processing system (TPS)Transaction processing system (TPS)
Transaction processing system (TPS)
 
History Of Production Operations Management (POM)
History Of Production Operations Management (POM)History Of Production Operations Management (POM)
History Of Production Operations Management (POM)
 
Erp
ErpErp
Erp
 
Application of business analytics
Application of business analyticsApplication of business analytics
Application of business analytics
 
Business process reengineering
Business process reengineeringBusiness process reengineering
Business process reengineering
 
Management information system ( MIS )
Management information system ( MIS )Management information system ( MIS )
Management information system ( MIS )
 
Functional information system
Functional  information systemFunctional  information system
Functional information system
 
Security & control in management information system
Security & control in management information systemSecurity & control in management information system
Security & control in management information system
 
Business policy & Strategic Management for MBA
Business policy & Strategic Management for MBABusiness policy & Strategic Management for MBA
Business policy & Strategic Management for MBA
 
Importance of MIS
Importance of MISImportance of MIS
Importance of MIS
 
Transaction Processing System
Transaction Processing SystemTransaction Processing System
Transaction Processing System
 
SECURITY & CONTROL OF INFORMATION SYSTEM (Management Information System)
SECURITY & CONTROL OF INFORMATION SYSTEM (Management Information System)SECURITY & CONTROL OF INFORMATION SYSTEM (Management Information System)
SECURITY & CONTROL OF INFORMATION SYSTEM (Management Information System)
 
It capabilities
It capabilitiesIt capabilities
It capabilities
 
FORMAL & INFORMAL INFORMATION SYSTEM
FORMAL & INFORMAL  INFORMATION SYSTEMFORMAL & INFORMAL  INFORMATION SYSTEM
FORMAL & INFORMAL INFORMATION SYSTEM
 

Destaque

Decision making environment
Decision making environmentDecision making environment
Decision making environmentshubhamvaghela
 
PDF ON JAVA - JFC CONCEPT
PDF ON JAVA - JFC CONCEPTPDF ON JAVA - JFC CONCEPT
PDF ON JAVA - JFC CONCEPTNAVYA RAO
 
AGRI 4411 Farm Management Chapter 2
AGRI 4411 Farm Management Chapter 2AGRI 4411 Farm Management Chapter 2
AGRI 4411 Farm Management Chapter 2Rita Conley
 
Chapter 2: Management History
Chapter 2: Management HistoryChapter 2: Management History
Chapter 2: Management HistoryNardin A
 
Decision Making In Management
Decision Making In ManagementDecision Making In Management
Decision Making In ManagementVinesh Pathak
 

Destaque (6)

Decision making environment
Decision making environmentDecision making environment
Decision making environment
 
Content context of mgmt dec
Content context of mgmt decContent context of mgmt dec
Content context of mgmt dec
 
PDF ON JAVA - JFC CONCEPT
PDF ON JAVA - JFC CONCEPTPDF ON JAVA - JFC CONCEPT
PDF ON JAVA - JFC CONCEPT
 
AGRI 4411 Farm Management Chapter 2
AGRI 4411 Farm Management Chapter 2AGRI 4411 Farm Management Chapter 2
AGRI 4411 Farm Management Chapter 2
 
Chapter 2: Management History
Chapter 2: Management HistoryChapter 2: Management History
Chapter 2: Management History
 
Decision Making In Management
Decision Making In ManagementDecision Making In Management
Decision Making In Management
 

Semelhante a Mis chapter 2 infomation, management and decision making

Decision making in management 23 09-2012
Decision making in management 23 09-2012Decision making in management 23 09-2012
Decision making in management 23 09-2012kovairaj
 
decision making and decentralization.pptx
decision making and decentralization.pptxdecision making and decentralization.pptx
decision making and decentralization.pptxThangamjayarani
 
Decision making
Decision makingDecision making
Decision makingLavan Yaa
 
IS332_Chapter 1
IS332_Chapter 1IS332_Chapter 1
IS332_Chapter 1alhaashem
 
Decision making of mca2
Decision making of mca2Decision making of mca2
Decision making of mca2Siyachi Iyer
 
decisionmaking-130223005506-phpapp02 (1).pptx
decisionmaking-130223005506-phpapp02 (1).pptxdecisionmaking-130223005506-phpapp02 (1).pptx
decisionmaking-130223005506-phpapp02 (1).pptxsanthosh77
 
Decision making
Decision makingDecision making
Decision makingOnline
 
Management information system
Management information systemManagement information system
Management information systemPOOJA UDAYAN
 
Principle of management decision makings
Principle of management decision makingsPrinciple of management decision makings
Principle of management decision makingsMuhammadArif877294
 
Decision making , rr mob.2011(3)
Decision making , rr mob.2011(3)Decision making , rr mob.2011(3)
Decision making , rr mob.2011(3)nishakdas
 
Learning_Unit_2
Learning_Unit_2Learning_Unit_2
Learning_Unit_2Jack Ong
 

Semelhante a Mis chapter 2 infomation, management and decision making (20)

Decision making in management 23 09-2012
Decision making in management 23 09-2012Decision making in management 23 09-2012
Decision making in management 23 09-2012
 
decision making and decentralization.pptx
decision making and decentralization.pptxdecision making and decentralization.pptx
decision making and decentralization.pptx
 
Decision Making
Decision MakingDecision Making
Decision Making
 
Decision making
Decision makingDecision making
Decision making
 
Decision making
Decision makingDecision making
Decision making
 
IS332_Chapter 1
IS332_Chapter 1IS332_Chapter 1
IS332_Chapter 1
 
Decision making of mca2
Decision making of mca2Decision making of mca2
Decision making of mca2
 
Decision-making
Decision-makingDecision-making
Decision-making
 
Decision Making
Decision MakingDecision Making
Decision Making
 
decisionmaking-130223005506-phpapp02 (1).pptx
decisionmaking-130223005506-phpapp02 (1).pptxdecisionmaking-130223005506-phpapp02 (1).pptx
decisionmaking-130223005506-phpapp02 (1).pptx
 
Decision making
Decision makingDecision making
Decision making
 
Decision making
Decision makingDecision making
Decision making
 
Management information system
Management information systemManagement information system
Management information system
 
Principle of management decision makings
Principle of management decision makingsPrinciple of management decision makings
Principle of management decision makings
 
Decision making , rr mob.2011(3)
Decision making , rr mob.2011(3)Decision making , rr mob.2011(3)
Decision making , rr mob.2011(3)
 
Dss
DssDss
Dss
 
Decision Making 2
Decision Making 2Decision Making 2
Decision Making 2
 
Learning_Unit_2
Learning_Unit_2Learning_Unit_2
Learning_Unit_2
 
Ebbpa3 b ch 7
Ebbpa3 b   ch 7Ebbpa3 b   ch 7
Ebbpa3 b ch 7
 
Decision making
Decision makingDecision making
Decision making
 

Mais de Ajay Khot

Mis chapter 4 database management - copy
Mis chapter 4   database management - copyMis chapter 4   database management - copy
Mis chapter 4 database management - copyAjay Khot
 
Mis chapter 1 mis
Mis chapter 1  misMis chapter 1  mis
Mis chapter 1 misAjay Khot
 
Mis chapter 1 mis - copy
Mis chapter 1  mis - copyMis chapter 1  mis - copy
Mis chapter 1 mis - copyAjay Khot
 
MIS chapter 8 mis reports
MIS chapter 8    mis reportsMIS chapter 8    mis reports
MIS chapter 8 mis reportsAjay Khot
 
New product development
New product developmentNew product development
New product developmentAjay Khot
 
Compensation Management
Compensation ManagementCompensation Management
Compensation ManagementAjay Khot
 
Anil ambani final
Anil ambani finalAnil ambani final
Anil ambani finalAjay Khot
 
Cadbury Bournville: Bournville rides with the Dark Knight
Cadbury Bournville: Bournville rides with the Dark KnightCadbury Bournville: Bournville rides with the Dark Knight
Cadbury Bournville: Bournville rides with the Dark KnightAjay Khot
 

Mais de Ajay Khot (9)

Mis chapter 4 database management - copy
Mis chapter 4   database management - copyMis chapter 4   database management - copy
Mis chapter 4 database management - copy
 
Mis chapter 1 mis
Mis chapter 1  misMis chapter 1  mis
Mis chapter 1 mis
 
Mis chapter 1 mis - copy
Mis chapter 1  mis - copyMis chapter 1  mis - copy
Mis chapter 1 mis - copy
 
MIS chapter 8 mis reports
MIS chapter 8    mis reportsMIS chapter 8    mis reports
MIS chapter 8 mis reports
 
Promotion
PromotionPromotion
Promotion
 
New product development
New product developmentNew product development
New product development
 
Compensation Management
Compensation ManagementCompensation Management
Compensation Management
 
Anil ambani final
Anil ambani finalAnil ambani final
Anil ambani final
 
Cadbury Bournville: Bournville rides with the Dark Knight
Cadbury Bournville: Bournville rides with the Dark KnightCadbury Bournville: Bournville rides with the Dark Knight
Cadbury Bournville: Bournville rides with the Dark Knight
 

Mis chapter 2 infomation, management and decision making

  • 1. Chapter II Chapter 2: Information, Management and Decision Making: Part A ( 1.5 hours) – Models of Decision Making - Classical, Administrative and Herbert Simon's Models Part B (1.5 hours) - Attributes of information and its relevance to Decision Making - Types of information
  • 2. Chapter II Chapter 2: Information, Management and Decision Making: Part A ( 1.5 hours) – Models of Decision Making - Classical, Administrative and Herbert Simon's Models
  • 3. Decision Making • Decision: a reasoned choice among alternatives • Examples: – Where to advertise a new product – What stock to buy – What movie to see – Where to go for dinner Decision Making: a process of choosing among alternative courses of action for the purpose of attaining a goal or goals • Decision making vs. problem solving? • ART or SCIENCE? 3
  • 4. Business Decision Aspects Typical Business Decision Aspects • Decision may be made by a group • Several, possibly contradictory objectives • Hundreds or thousands of alternatives • Results can occur in the future • Attitudes towards risk • “What-if” scenarios • Trial-and-error experimentation with the real system: may result in a loss • Experimentation with the real system can only be done once • Changes in the environment can occur continuously 4
  • 5. LEVELS OF DECISION MAKING 1. STRATEGIC: Long-term objectives; resources; policies 2. MANAGEMENT CONTROL: Monitor use of resources; performance 3. KNOWLEDGE-LEVEL: Evaluate potential innovations; knowledge 4. OPERATIONAL: How to carry out specific day-to-day tasks 4.19
  • 6. Nature of Decision • Structured Problems – Routine and repetitive with standard solution – Well defined decision making procedure – Given a well-defined set of input, a well defined set of output is defined • Semi-structured Problems – Has some structured aspect – Some of the inputs or outputs or procedures are not well defined • Unstructured Problems – All phases of decision making process are unstructured – Not well defined input, output set and procedures 6
  • 7. Decisions Types Following are the types of Decision 1. Programmed/Structured Decisions 2. Semi Programmed/Structured Decision 3. Non Programmed Decisions Structured Unstructured Level of decision making - Scope Strategic Managerial Operational 7
  • 8. Programmed/Structured Decisions Nature of Programmed/ Structure Techniques used for taking these Decision: decision: 1. They are Routine/Structure 1. Habit 2. They are repetitive/short term 2. Standard Operating Procedures 3. Definite procedure is to be (SOP) followed 3. Organizational 4. There are laid down norms Hierarchy/structure 5. Situations are known 4. Operational research 6. They are taken at lower or 5. Computers operating levels in the organization.
  • 9. Semi Programmed/Structured Decision • SEMISTRUCTURED: One or more factors not structured; risk
  • 10. Non -Programmed/un-structured Decisions Nature of Non-programmed/ Techniques used for taking these unstructured Decision: decision: 1. Innovative 1. Judgment 2. New/complex situations 2. Intuition 3. Important and critical 3. Business acumen 4. Strategic 4. Complex/ specially designed 5. Long- term computer programmes 5. Training executives
  • 11. INFO SYSTEMS, LEVE, DECISIONS ORGANIZATIONAL LEVEL TYPE OF DECISION OPERATIONAL KNOWLEDGE MANAGEMENT STRATEGIC STRUCTURED ACCOUNTS RECEIVABLE ELECTRONIC PRODUCTION SCHEDULING COST OVERRUNS TPS OAS MIS SEMI- BUDGET STRUCTURED PREPARATION PROJECT DSS SCHEDULING FACILITY LOCATION KWS ESS UNSTRUCTURED PRODUCT DESIGN NEW PRODUCTS NEW MARKETS
  • 12. Decision Making Process 1. Recognizing and defining the situation 2. Identifying alternatives 3. Evaluation alternatives 4. Selecting the best alternative 5. Implementing the chosen alternative 6. Follow-up and evaluation
  • 13. INDIVIDUAL MODELS OF DECISION MAKING 1. RATIONAL: Comprehensive rationality; evaluate all alternatives 2. SATISFICING: Bounded rationality; choose first “good” alternative 3. MUDDLING (mixed/confused): Successive comparison; marginal changes 4. PSYCHOLOGICAL: Cognitive types; manages differ in how they make choices
  • 14. ORGANIZATIONAL MODELS OF DECISION MAKING/ Decision Making Styles 1. RATIONAL ACTOR: Maximize organization’s benefits 2. BUREAUCRATIC: Follow standard operating procedures (SOP) 3. POLITICAL: Key groups compete and bargain 4. “GARBAGE CAN”: Organizations not rational; solutions accidental 5. Heuristic: is a method to help solve a problem, commonly an informal method. It is particularly used to rapidly come to a solution that is reasonably close to the best possible answer, or 'optimal solution'. 6. Analytic 7. Autocratic 8. Democratic 9. Consultative (with individuals or groups) 10. Combinations and variations
  • 15. Decision Making Models A. Classical Model: Collecting all required information and taking the decision in the best interests of the organization. B. Administrative Model: Collecting all required information and taking the decision may not be in the best interests of the organization but it will be in the best interest of managers. C. Herbert Simon Model:
  • 16. The Herbert Simon’s Model The decision Making process consists of following phases: 1. Intelligence phase: thinking of the problem as it comes a) Societal Environment b) Competitive Environment c) Organizational Environment 2. Design Phase: this consists for inventing, developing and analyzing the likely solutions a) Understanding the problem b) generating the solution c) Testing the feasibility of solution 3. Choice Phase: Selecting the specific alternative or solution 4. Implementation : Put decision into effect; allocate resources; control * Relevance of this model: 1) Provide the decision process 2) It provide the base for designing the MIS Limitation of this model: 1) It is specifies the decision process and will not go beyond choice 2) This model does not includes the feedback phase and corrective action.
  • 17. Chapter II Chapter 2: Information, Management and Decision Making: Part B (1.5 hours) - Attributes of information and its relevance to Decision Making - Types of information
  • 18. Information David and Olson Defines, “Data that has been processed into a form that is meaningful to the recipient and it is of real or perceived value in current or prospective actions or decisions” INPUT PROCESS OUTPUT FEEDBACK
  • 19. Overview  Information Systems help companies achieve their goals.  How do they do it? 1. By processing raw data into information 2. IS can add value to information by enhancing the attributes (11 of them).
  • 20. 11 Attributes of Information Usability Delivery 1. Timely 1. Relevant 2. Accessible 2. Simple 3. Secure 3. Flexible 4. Economical Quality 1. Accurate 2. Verifiable 3. Complete 4. Reliable
  • 21. Information Spectrum • Data  processing  Information • Information  intelligence  Knowledge • Knowledge  experience  Wisdom
  • 22. Information Process 1. Capturing - recording of events and transactions 2. Verifying - validation and checks for correctness 3. Classifying – specific categories 4. Arranging/Sorting – building sequencing 5. Summarizing – combining and aggregate 6. Calculating –Arithmetical and logical computation 7. Storing –storage media 8. Retrieving – searching and accessing the information 9. Reproducing – duplicating or copying of data. 10.Communication – transferring the data from one to another 11.Deleting/purging – removal or deleting the data
  • 23. Types of Information A. Hierarchical 1. Information needed for Strategic Level 2. Information needed for Tactical Level 3. Information needed for Operational Level B . Planning and Controlling Perspective 1. Information needed for Planning 2. Information needed for Controlling 3. Information needed for solving problems 4. Information needed for execution
  • 24. Sources of Information 1. Primary Source : a) First hand information received directly from the users, customers, employees ( survey , meeting, discussion, interviews etc.) 2. Secondary Sources a) Published :Government publications, Journals, Newspapers, Monographs and textbooks, Reference works, Audio Visual, Electronic media etc b) Unpublished: Human sources, Dissertations / Theses, Reports, Grey literature, Information on the Internet Email
  • 25. Human as information Processor memory Input from Output Mental Channels Sensory Channels response Processing Receptors Inputs Outputs
  • 26. Computer information processing system storage input Processor output
  • 27. Functions of an Information System
  • 28. Information requirement Information requirement is a detailed statement of the information needs that a system must satisfy. It involves identifying who needs what information, where, when and how. Information required at different level in the organization: 1. Organizational Level information requirements - Organization level information for planning, controlling and managing purpose. To get the information we need to a) Defining sub-systems, b) Developing managers sub system , and c) Defining and evaluating the information requirement by sub system 2. Data Base Requirements: Organizing and defining the data class, data types in the computer system 3. Application level information requirements: Unit level , department level, process level, information, form level information. a) Behaviors or role based requirements b) Technical requirements
  • 29. Techniques for Assessing information Requirements 1. Asking questions 2. Deriving From an existing information system 3. Ends-means analysis : analyzing the end use of the information and then getting the information requirements 4. Critical Success Factors (CSFs): Collecting all the factors affecting and then collect the information requirement 5. Business System Planning (BSP): this is the organization wise information requirements which includes all units, functions, processes and data elements.