Upload
navdeep-singh
View
230
Download
2
Embed Size (px)
Citation preview
8/7/2019 Decision Making & MIS
1/18
Decision Making & MIS
By:
Navdeep
MSc(IT)-Final
8/7/2019 Decision Making & MIS
2/18
Decision
ADecision is the act of making up your mind
about something;
ADecision is a position or opinion orjudgment reached after consideration
ADecision is the outcome of a game or contest
8/7/2019 Decision Making & MIS
3/18
Decision Making
Having the ability to make decisions
Process of making choices or reaching
conclusions The output of an action or opinion of a choice
8/7/2019 Decision Making & MIS
4/18
Simons Model of Decision-Making
8/7/2019 Decision Making & MIS
5/18
Intelligence Phase
encompasses collection, classification,
processing, and presentation
It implies an identification of the problem(s)
8/7/2019 Decision Making & MIS
6/18
Intelligence Phase Components
8/7/2019 Decision Making & MIS
7/18
Intelligence Phase Components
Problem Searching
the difference between the expected and the real
result
(expected)-(actual reality) = difference/problem
Problem Formulation
proper identification of the problem to avoid the
risk
8/7/2019 Decision Making & MIS
8/18
Design Phase
The decision maker outlines alternative
solutions
Developing and analyzing possible courses ofaction
Also be examined for technological,
behavioural, and economic feasibility
8/7/2019 Decision Making & MIS
9/18
Choice Phase
Involves selecting the best alternative
that will best contribute to the goals of the
organization
8/7/2019 Decision Making & MIS
10/18
Implementation Phase
Actual Work in progress the Decision
Testing the selected alternative
8/7/2019 Decision Making & MIS
11/18
Types of Decisions
On based of purpose
On based of Level of Programmability
On based of Types
8/7/2019 Decision Making & MIS
12/18
On based of purpose
Strategic Decision
Taken by High Level of Mgmt People
Long-term objectives; resources; policies; most
imaginative; the most risky; the most uncertainoutcome
Management Control Decision
Taken By Middle Level of Mgmt People
Monitor use of resources; performance & Evaluatepotential innovations; knowledge
medium range, medium significance, with
moderate consequences
8/7/2019 Decision Making & MIS
13/18
8/7/2019 Decision Making & MIS
14/18
On based of Level of
Programmability Decision under Risk
estimate the probability of outcomes
Decision making under Certainty manager can make an accurate decision
outcome of every alternative choice is known
Decision making under Uncertainty does not have complete information
doesnt know all the alternatives
8/7/2019 Decision Making & MIS
15/18
On based ofType
Structured Decision / Programmed Decision
in routine, repetitive, well-structured situationswith predetermined decision rules
Unstructured Decision / Non-ProgrammedDecision
to situations that are unique, are poorly defined andlargely unstructured
Semi-structured Decision
one which is partially programmable, but stillrequires human judgment.
8/7/2019 Decision Making & MIS
16/18
Methods for Choosing Among
Alternatives Decision Theory or Decision Analysis
knowledge and related analytical techniques ofdifferent degrees of formality
can apply to conditions of certainty, risk, oruncertainty
Decision Tree
uses a tree-like graph
commonly used in operations research Another use for calculating conditional probabilities
8/7/2019 Decision Making & MIS
17/18
Contd..
UtilityTheory used to predict or prescribe the choice
depends on the preferences of the individual decisionmaker
Optimization Techniques seeks to minimize or maximize a real function
finding "best available" values of some objective
Example
Linear programming
Integer programming
Quadratic programming
Nonlinear programming
8/7/2019 Decision Making & MIS
18/18