Week5-Topic5-Decision Management

Decision Behaviour:

The way the managers make most of their decisions is called decision behaviour. The behaviour can be classified as structured and unstructured. When the rules and the constraints governing the decision is already known it is called structured decision behaviour. Complex situations where the rules governing the situation are complicated is known as unstructured decision behaviour.

Usually a manager will fall into one of the two areas: Analytical Manager and Intuitive Manager.

Analytical manager : They tend to make use of figures, quantitative data

Intuitive manager : They concentrate more looking at the situation as a whole rather than independent parts, qualitative data

Decision model framework shows how a decision moves through 5 different stages.Each stage much be completed first before moving on to the next stage. The 5 stages are Intelligence, Design, Choice, Implement decision and Evaluation of decision.

Systems that support managerial decisions can be categorised into the following types : Management Information System (MIS), Decision Support System (DSS) and Executive Information System (EIS)

Management Information System(MIS) is a system that provides information needed to manage organizations effectively. Management information systems involve three primary resources: technology, information, and people, and the most important resource is people, the information that we get supports the routine decision making in the functional areas.

 

Decision Support System(DSS) is used to model data and make quality decision based on the data, making the right decision is usually based on the quality of the  data and one's ability to analyze the data. Decision Support Systems are usually computer applications with a human component. They can shift through large amounts of data and pick between the many choices and supports the non – routine decision.

Executive Information System(EIS) provide senior managers with systems to analyse compare and highlight trends to help govern strategic direction of a company.