MCS 2020 Chapter 8: Chapter 8 Decision Making and Business Intelligence
12 May 2017
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Document Summary
Decision making is a rational act in which individuals or groups consider the possible. It is the essence of management choices and the likely consequences and choose what they think is the best alternative. The concept of rationality can be hard to define: processes are considered rational if they result in outcomes that are deemed good or are likely to lead to good outcomes. Good outcomes occasionally result from irrational processes, bad outcomes can result from good processes: ex. Not rational to skip university to buy lottery tickets but for some this strategy was successful. Managers sometimes make decisions first and find evidence to support their evidence later. Computers are sometimes used for decision making. Data is growing at the rate of 40% a year. Occurs inside organizations just as much as outside. The useful information gets buried in the overload. The challenge managers face is to find the appropriate data and incorporate them into their decision-making process.
