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Chapter 10

HRM 3400 Chapter Notes - Chapter 10: Cisco Systems

Human Resources Management
Course Code
HRM 3400
Anna Blake

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HRM 3400 Chapter 10 Notes Summary
The new information system helped reduce death rates by more than 30 percent.
In another case, a popular GPS company monitored the performance of one of its
marine navigation systems and determined that the GPS device incorrectly computed
water depths.
As a result of the monitoring stage, the company issued a worldwide recall of all
affected devices.
Programmed versus Nonprogrammed Decisions
In the choice stage, various factors influence the decision maker’s selectio of a
One factor is whether the decision can be programmed.
Programmed decisions are made using a rule, procedure, or quantitative method.
For example, to say that inventory should be ordered when inventory levels drop to 100
units is a programmed decision because it adheres to a rule.
Programmed decisions are easy to computerize using traditional information systems.
For example, you can easily program a computer to order more inventory when levels
for a certain item reach 100 units or less.
Cisco Systems, a large computer equipment and server manufacturing company,
controls its inventory and production levels using programmed decisions embedded into
its computer systems.
The programmed decision-making process has improved forecasting accuracy and
reduced the possibility of manufacturing the wrong types of inventory, which has saved
money and preserved cash reserves.
Management information systems can also reach programmed decisions by providing
reports on problems that are routine and in which the relationships are well defined (in
other words, they are structured problems).
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