Chapter 3E

Question 1

What is the difference between a structured versus an unstructured decision? Explain, then provide an example of each.

Answer 1

a. Structured Decision is one for which there is an understood and accepted method for making the decision.
Ex. Formula for computing the reorder quantity of an item in inventory
Ex. Method for allocating furniture and a equip. to employees.
b. Unstructured Decision is one for which there is no agreed-on decision-making method.
Ex. Asessing how well suited an employee is for performing a particular job.
-Ex. Formula for computing the reorder quantity of an item in inventory
Ex. Method for allocating furniture and a equip. to employees.
b. Unstructured Decision is one for which there is no agreed-on decision-making method.
Ex. Asessing how well suited an employee is for performing a particular job.

Question 2

-Which of these types of decisions is most easy to program for a computer to do and why?

Answer 2

Structured Decision is easier to program in the computer because there is a method, step, or formula in making the decision.

Question 3

• What type of decisions are made at each of the following levels: operational, managerial, and strategic? Be specific and provide examples.

Answer 3

A. Operational- concern day-to-day act.
Ex. Which invoices should we pay today?

b. Managerial- concerns allocation and utilization of resources.
Ex. How much should we budget for computer hardware next year?

c. Strategic- concern broader-scope, organizational issues.
Ex. Should we start a new product line?

Question 4

What are the steps (5) in the decision making process? Please explain, using a specific example.

Answer 4

1. Intelligence gathering- the decision makers determine what is to be decided, what the criteria fot the decision will be, and what data are available.
   Ex. Communications applications (email, word, ppt)
   -facilitates communication among decision makers
   Ex. query and report system, data analysis application
   -used to obtain relevant data
2. Alternatives Formulation- stage in which decision makers lay out various alternatives,
   Ex. Communications applications (email, videoconference)
   - used for communication
3. Choice- they analyze the alternatives and select one during this step.
   Ex. Spreadsheets, financial modeling
   -helps decision makers to analyze alternatives
4. Implementation- they implement the decision
   Ex. Communications application
5. Review- evaluates results of decision and if necessary repeat process to correct and adapt
   Ex. Communications, query, spreadsheets
   -all types of information systems are used

Question 5

• What is meant by an augmentation information system? Who might use this? Provide an example of an augmentation information system and the type of decision that would be made using an augmentation information system.

Answer 5

Augmentation information systems are those in which humans do the bulk of the work. An info. system that uses email, instant messaging, and videoconferencing to assist decision of whether to buy a competing company is an augmentation system.
Unstructured decisions are supported by augmentation info. system., and they are applied at the managerial and strategic levels.