7. Decisions in business Flashcards
Decision
A choice made between two or more alternative courses of action
Decision making
The process of identifying problems and opportunities and then resolving them
What is the purpose of a decision?
Problem solving
Opportunity exploiting
How do managers make decisions?
A process known as decision behaviour
Decision-making (elements)
Decision behaviour Decision category Cognitive style Decision-making levels Decision-making framework
Decision category
Process by which decisions are made and the influencing factors
Cognitive style
The way a person absorbs information and reaches a decision
Decision-making levels
The characteristics of the decision may vary according to the organisational level at which it was taken
Decision-making framework (stages)
- Intelligence
- Design
- Choice
- Implementation
- Evaluation
Decision-making process (steps)
- Problem identification
- Data collection
- Solution generation
- Solution test
- Solution selection
- Solution implementation
How to measure organisational business decisions
Project
Metrics
Critical success factors
Key performance indicators (internal and external)
Efficiency MIS metrics
Measure the performance of MIS itself, such as throughput, transaction speed, and system availability
Effectiveness MIS metrics
Measure the impact MIS has on business processes and activities, including customer satisfaction and customer conversation rates
