MIS-12 Flashcards
Types of Decisions in an Organization
- Structured decisions
- Semistructured decisions
- Unstructured decisions
Structured decisions
- Can be automated because a well-defined standard operating procedure exists for these types of decisions
- Known as programmable tasks
Semistructured decisions
- Include a structured aspect that benefits from information retrieval, analytical models, and information systems technology
Unstructured decisions
- One-time decisions with no standard operating procedure
- Decision maker’s intuition plays an important role as information technology offers less support for the decisions
Organizational Levels
- Strategic Management
- Tactical Management
- Operational Management
Management Support Systems (MSSs)
- Different types of information systems that have been developed to support certain aspects and types of decisions
- Each type is designed with unique goals and objectives
Phases of Decision Making
- Intelligence phase
- Design phase
- Choice phase
- Implementation phase
Intelligence Phase
- Decision maker examines the organization’s environment for conditions that need decisions
- Data is collected from a variety of sources and processed
Design Phase
- Defines the criteria for a decision
- Generates alternatives for meeting the criteria
- Defines associations between the criteria and the alternatives (Requires understanding how each alternative affects the criteria)
- Information technology does not support this phase of decision making
Choice Phase
- Selecting the best and most effective course of action is from the alternatives
- Analyzing each alternative and its relationship to the criteria to determine whether it is feasible
Decision support system (DSS)
- Helps sort through possible solutions to choose the best one for the organization
- Includes tools for calculating cost-benefit ratios
Implementation Phase
- Organization devises a plan for carrying out the alternative selected in the choice phase and obtains the resources to implement the plan
- DSS does a follow-up assessment on how well a solution is performing
Decision support system (DSS)
PART 2
-Interactive information system designed to assist decision makers in an organization
-Consist of:
Hardware
Software
Data
Mathematical and statistical models
Requirements of Decision Support Systems
- Be interactive and incorporate the human element as well as hardware and software
- Use internal and external data
- Include mathematical and statistical models
- Support decision makers at all organizational levels
- Emphasize semistructured and unstructured tasks
Components of Decision Support Systems
- Database
- Model base
DSS includes the following features to support decision making
- What-if analysis
- Goal-seeking
- Sensitivity analysis
- Exception reporting analysis
Roles in the DSS Environment
- Users
- Managerial Designer
Technical Designer
- Focuses on how the DSS is implemented
- Addresses questions about:
Data storage
File structure
User access
Response time
Security measures
