Chapter 7: Information and decision making Flashcards
What is data and what is an information system?
Data is any quantifiable measured information that when collated becomes useful for decision making.
Information systems use software to collect, organise and distribute information in such a way that it becomes useful for decision making.
What are the 5 characteristics of useful information?
- Timeliness - available when needed
- Quality - accurate and reliable
- Completeness - up to date
- Relevance - free from extraneous material
- Understandability - presented in proper form
How does information flow in an organisation?
Vertically throughout the organisation from top to middle to lower managers, with top managers explaining long-term goals whilst lower managers making short-term decisions.
Horizontally. Intelligence information is gathered from the external environment, processed through the organisation vertically and then outputted as public information to the external environment.
What is a decision support system, and what is an expert system?
A DSS allows a computer to help organise and analyse data for problem solving.
An expert system allows computers to mimic the thinking of human experts for problem-solving.
What are intranets and extranets?
Intranets and corporate portals use the web for communication and data sharing within an organisation.
Extranets and enterprise portals use the web for communication and data sharing between the organisation and special elements in its external environment.
What is a management information system?
A MIS is a computer system that stores and distributes information on how to successfully manage an organisation. It aids managers using information technology.
What advantages does an MIS have?
Planning advantages - information is received in a more timely manner Leading advantages - allows for better and more frequent communication with members and stakeholders
Organising advantages - Allows for ongoing communication amongst all parts of an organisation ensuring better integration
Controlling advantages - Allows for immediate and complete measurement of performance results
What are the types of managerial decisions?
Programmed decisions apply solutions from past experience to a routine problem.
Non-programmed decisions apply specific solutions crafted for a unique problem.
What are decision conditions?
A certain environment offers complete information on possible action alternatives and their consequences.
A risk environment lacks complete information, but offers ‘probabilities’ of the likely outcomes for possible action alternatives.
An uncertain environment lacks so much information that it is difficult to assign probabilities to the likely outcomes of alternatives. (more common at high manager levels)
What are three different ways of dealing with problems?
Problem avoiders ignore information, are inactive and do not want to make decisions and deal with problems.
Problem solvers are willing to make decisions and solve problems, but they are reactive.
Problem seekers actively process information and constantly look for problems to solve or opportunities to explore. True problem seekers are proactive.
Distinguish between systematic and intuitive thinking.
In systematic thinking, a person approaches problems in a rational, step- by-step and analytical fashion. This may include making a plan.
In intuitive thinking, a person approaches problems in a flexible and spontaneous fashion. This involves responding quickly.
What is strategic opportunism?
The ability to remain focused on long-term objectives while being flexible enough to resolve short-term problems.
