Premier University
[B.B.A]
Submitted To : Lecturer MS. Samima Parvez
Subject : Decision Making and Information
Semester: 5th Section: “A” Batch :22nd
Group Name: D’5
E-mail : Saimonchy20@gmail.com
2. Management Information System
Submitted To
Lecturer MS. Samima Parvez
Subject : Decision Making and Information Systems
Group : D
3. PRESENTER ID & NAME
31
2
33
4
5
1022114412 Md. Ariful Islam Saimon Chy
1022114372 Md.Shahadat Hossain
1021114362 Imteaj Ibna Hossain
1022114413 Md. Rasel
1022114384 Md.Shazzad Hossain
4. Decision Making and Information Systems
Introduction: Today information systems provide
information to all levels of management of an
organization .So all the levels are responsible for
decision making.
Decision making is the developing concepts leading to the
selection of a course of action among variations. Every
decision making process produces a final choice, It can be
an action or an opinion. It begins when we need to do
something but we do not know what e.g. Decision to raise a
Purchase Order Management Information Systems
5. Objectives of the project
The objectives of our project are to find the answer of
the following questions
1.What is the business value of improved decision making?
2.How many types of decisions are exist in different levels of
management?
3.What information system is needed for what type of decision
making /level of management?
4.How decision making process work?
5.How information system effect management role take
decision?
6. Business value of improved decision making
Decisions must be made every level of
management of an organization. Improved
decisions can increase the average ROI
and profitability of an organization.
A single improved decision may effect in
business value a little but numerous
improved decisions can change the
annual business value wholly.
7. Unstructured
Semi structured
Structured
Decide entrance
or exit from
approve capital
budget Decide
long-term goals
Design a marketing
plan
Develop a
departmental
budget
Design a new
corporate Web site
Determine overtime
eligibility
Restock inventory
Offer credit to
customers Determine
special offers to
customers
Types of decisions
8. Information systems requirement for decision
making & Mgt. Level
Types of
decisions
Managerial
levels
information
system needed
Aspects
Senior Manager Executive
Support
System (ESS)
Middle Manager Management
Information
System(MIS) &
Decision Support
System (DSS)
Operational
management
Transaction
Processing
System (TPS)
Unstructured
Semi structured
Structured
9. Types of decisions
Unstructured decisions
The decisions are made by senior management.
It is a non routine type decision.
There is no specific procedure or structure for decision making.
It includes strategic issues and long term effect of decision.
Structured decisions
These decisions are made by operational managers.
It is a repetitive and non routine type decision.
There are specific structures and procedures for solving a problem and decision making.
It involves operational issues and has a very short time effect.
Semi structured decisions
These decisions are made by middle management.
It is both routine and non routine type decisions.
Usually it gives a clear cut solution of a problem.
There is both structured and unstructured procedure for decision making.
10. What information system is needed for what type
of decision making /level of management?
It needs special consideration, insight, judgment and evaluation. So
information systems may not effective for all time. In spite of that
decision maker can use ESS.
For being a two way decision two different information systems are used for
decision making. These are MIS (used for structured decision making) and
DSS (for non structured decision making).
It works with daily affairs or transactions.
So it uses TPS where such data (credit, reipts, sales, labour works etc.)are
recorded.
11. How decision making process work?
Simon (1960)introduced a Decision Making Process which includes
four stages. In his theory he discussed in detail that how actually
decision making process works. The following diagram was given
by Simon. Now we can discuss it in our way:
Intelligence
Design
Choice
Implementation
Problem Discovery :
What is the Problem ?
Solution Discovery :
What are the possible Solutions?
Choosing Solutions :
What is the best solution
Solution Tasting :
Is the solution
working ?
Can we make it
work better?
The decision-making process is broken down into four stages
12. STAGES IN DECISION MAKING
Intelligence :
Decision making process starts with discovering (what), identifying (where)
and understanding (why) the problem is occurring in the organization. And
this is what the intelligence concern with
Design :
After discovering, identifying and understanding the problem, decision maker
find some possible solution for the problem a rised. Which is called Designing
the solution.
Choice :
What solution alternative should be the perfect match for the problem
among solution alternatives is the concern of this stage.
Implementation:
This is the situation where actually the decision is applied. After applying the
decision, Decision makers continuously monitor is the decision is right.
The decision making process may work like a cycle when the taken
decision works properly. Then decision maker again through same
stages. Then the decision cycle will be like following.
13. Managerial Roles& Real world decision making
Decision making is a part of Managerial role. So we first need to understand what
roles a managers play in organization
Managerial Roles: There are two Models to descried managerial roles
1.Classical models :It includes the following tradition roles of organization This traditional
role cannot give us actual information what managers do in organization
Coordinating
Organizing
Planning
Controlling
5 functions
Deciding
Functions of organization
14. Managerial Roles& Real world Decision Making
Behavioral Models :Actual behavior of managers appears to be less systematic,more
informal, less reflective, more reactive, and less well organized than in classical model
There managers roles are described more detailed then classical models.Mintzberg tells
10 roles which falls in there dimensions .There are Explained in following figure.
IInntteerrppeerrssoonnaall rroolleess IInnffoorrmmaattiioonnaall rroolleess
DDeecciissiioonnaall rroolleess
Nerve center
Disseminator
Spokesperson
Entrepreneur
Disturbance
handler
Resource
allocator
Negotiator
Figurehead
Leader
Liaison
15. Real World Decision Making
We saw that information System are not needed by all
managerial roles but some. But in the real world decision
making is something else, for three reasons information
systems are not helpful for decision making
Information
…Quality
Management
….Filters
Real World Decision Making
Organizational
__Culture
16. REAL WORLD DECISION MAKING
1. Information Quality: Decision may suffer if the information
quality doesn’t meet the decision quality.
2. Management Filters: Information collected by managers
through a series of filters. Where information are rejected if it
does not conform to manager
3. Organizational Culture: some strong forces within
organization such as their capabilities and competencies resist
making decision where major changes in business
processes are involved.
.