MGT 3061 Chapter Notes - Chapter 12: Standard Operating Procedure, Decision Support System, Sensitivity Analysis
Chapter 12: Management Support Systems
TYPES OF DECISIONS IN AN ORGANIZATION
Structured decisions
◦ Well-defined standard operating procedure exists
◦ Also called programmable tasks
◦ Can be automated
Semistructured decisions
◦ Not as well-defined by standard operating procedures
◦ Include a structured aspect that benefits from information retrieval, analytical
models, and information systems technology
Unstructured decisions
◦ Unique; typically one-time decisions
◦ Does not rely on standard operating procedure
◦ Decisio aker’s ituitio plays the ost iportat role
◦ Information technology offers little support for these decisions
Management support systems (MSSs)
◦ Different types of information systems have been developed to support certain
aspects and types of decisions
PHASES OF THE DECISION MAKING PROCESS
Herbert Simon
◦ Winner of the 1978 Nobel Prize in economics
◦ Defines three phases in the decision-making process:
intelligence,
design,
choice
◦ Fourth phase, implementation, can be added
The implementation phase
Organization devises a plan for carrying out the alternative selected in the choice phase
Obtains the resources to implement the plan
DSS can do a follow-up assessment on how well a solution is performing
DECISION SUPPORT SYSTEMS
Decision support system (DSS)
◦ Interactive information system
◦ Consisting of hardware, software, data, and models (mathematical and
statistical)
◦ Designed to assist decision makers in an organization
Requirements:
◦ Be interactive
◦ Incorporate the human element as well as hardware and software
◦ Use both internal and external data
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Document Summary
Structured decisions: well-defined standard operating procedure exists, also called programmable tasks, can be automated. Semistructured decisions: not as well-defined by standard operating procedures. Include a structured aspect that benefits from information retrieval, analytical models, and information systems technology. Unstructured decisions: unique; typically one-time decisions, does not rely on standard operating procedure, decisio(cid:374) (cid:373)aker"s i(cid:374)tuitio(cid:374) plays the (cid:373)ost i(cid:373)porta(cid:374)t role. Information technology offers little support for these decisions. Management support systems (msss: different types of information systems have been developed to support certain aspects and types of decisions. Herbert simon: winner of the 1978 nobel prize in economics, defines three phases in the decision-making process: intelligence, Design, choice: fourth phase, implementation, can be added. Organization devises a plan for carrying out the alternative selected in the choice phase. Dss can do a follow-up assessment on how well a solution is performing.
