Chapter II Flashcards
Managerial decision-making challenges
- –large amounts of information
- – sophisticated analysis techniques
- – decisions quickly
Analyze
Apply
Make
The six-step decision-making process --- identification --- collection Solution --- Solution --- Solution --- Solution ---
Problem Data Generation Test Selection Implementation
—- —-: Define the problem as clearly and precisely as possible.
Problem Identification
—- —-: Gather problem-related data, including who, what, where, when, why, and how. Be sure to gather facts, not rumors or opinions about the problem.
Data Collection
—- —-: Detail every solution possible, including ideas that seem farfetched.
Solution Generation
— —: Evaluate solutions in terms of feasibility(can it be completed), suitability(permanent or temporary fix), and acceptability(can all participants form a consensus).
Solution Test
—- —-:Select the solution that best solves the problem and meets the needs of the business.
Solution Selection
—- —-: If the solution solves the problem, then the decisions made were correct. If not, then the decisions were incorrect and the process begins again.
Solution Implementation
— level: Unstructured Decisions: Managers develop overall business strategies, goals, and objectives as part of the company’s strategic plan.
Strategic Level
—: Semi structured Decisions; Employees are continuously evaluating company operations to hone the firm’s abilities to identify, adapt to, and leverage change.
Managerial Level
— —: Structured Decisions; Employees develop, control and maintain core business activities required to run the day-to-day operations
Operational Level
— decisions - Situations where established processes offer potential solutions
Structured
—decisions – Occur in situations in which a few established processes help to evaluate potential solutions, but not enough to lead to a definite recommended decision
Semistructured
—- decision making – Managers develop overall strategies, goals, and objectives
Strategic
- – A temporary activity a company undertakes to create a unique product, service, or result
Project
— – Measurements that evaluate results to determine whether a project is meeting its goals
Metrics
---(CSFs) – The crucial steps companies make to perform to achieve their goals and objectives and implement strategies Create high-quality products Retain competitive advantages Reduce product costs Increase customer satisfaction Hire and retain the best professionals
Critical Success Factors
--- (KPIs) – The quantifiable metrics a company uses to evaluate progress toward critical success factors Turnover rates of employees Number of product returns Number of new customers Average customer spending
Key Performance Indicators
External KPI
—- – The portion of the market that a firm captures (external)
Market Share
Internal KPI
—(ROI) – Indicates the earning power of a project
Return of Investment
— – Measure the performance of MIS itself, such as throughput, transaction speed, and system availability
Efficiency MIS metrics
— – Measures the impact MIS has on business processes and activities, including customer satisfaction and customer conversation rates
Effectiveness MIS metrics
— – Baseline values the system seeks to attain
Benchmark
— – A process of continuously measuring system results, comparing those results to optimal system performance (benchmark values), and identifying steps and procedures to improve system performance
Benchmarking
