- Answers to the questions are as per the students input will be refined in further discussions
- What common characteristics of a decision support system relate to the decision making process?
The role of DSS is to provide support to decision maker on the “structurable” portions of the decision. With this support, the decision maker is free to focus his or her cognitive resources on the truly unstructured portions of the problem – those portions that, gives the limit of technology to execute a complex problem – solving strategies contained in human memory, are better left for resolution by human decision makers. The decision process employed in addressing the unstructured portion of decision situation can be thought of as the human processes, we don’t yet understand well enough to effectively simulate via automation. Some common DSS characteristics are as follows:-
- Employed in semi structured or unstructured decision contexts.
- Intended to support decision makers rather than replace them.
- Supports all phases of the decision making process.
- Focuses on the effectiveness of decision making process rather than its efficiency.
- Is under control of DSS.
- Uses underlying data and models.
- Facilitates learning on the part of decision maker.
- Is interactive or user – friendly.
- Is generally developed using an evolutionary, iterative process.
- Provide support for all levels of mgmt. from top execute to managers.
- Can provide support for multiple independent and interdependent decisions.Provide support for individual groups, team based decision making contexts.
Ans.:-
- Executive DSS Executive type of DSS or EIS that aims to meet ad hoc information needs of top executives. This shows uses and benefits in large organization for documentation section. As definition, the DSS that assists top executives in ad-hoc analyses of current performance and projected operations is said as EIS; or the computerized system that gives executives easy access to internal and external information relevant to their critical success factors, is said as Executive Decision Support System. Advantages
- Its able to access and combine information from a broad range of sources both within and outside of the organization
- Its able to present information in textual, tabular, and in graphical way.
- It is able to do status reporting, exception reporting, trend analysis, and drill-down investigation.
- Group DSS
This study 1st proposes a rational – political group decision – making model which identifies three uncertain factors involved in a group decision making process: decision makers’ role in a group reaching a satisfactory solution, preferences for alternatives and judgments for assessment – criteria. Based on the model, a linguistic term oriented multi – criteria group decision making method uses general fuzzy number to deal with the three uncertain factors into a group satisfactory decision that is in a most acceptable degree of the group. Moreover, this study implements the method by developing a web – based group decision support system. This system allows decision makers to participate a group decision – making process as a whole, from criteria generation, alternative evaluation, opinion interaction to decision aggregation. Finally, an application of the system is presented to illustrate the web – based group decision support system.
Uses
- Adapting human factors for these technologies.
- Facilitating interdisciplinary collaboration.
- Promoting effective organizational learning.
- Corporate DSS
Predicting the future is an integral part of effective corporate decision making. Most business challenges require information which is dispersed among the opinions and intuitions of many people. It shows that especially conditional prediction markets can be used as decision support systems. Of course, the value and usefulness of prediction markets depends mostly on their comparison with the existing tools that companies employ to combine information. But no empirical study has yet compared prediction markets directly to one of the most widespread corporate mechanisms to collect and aggregate information: group deliberation.
Uses:-
• ABC
• DEC
Data Centric DSS:-
Data Centric system is also called as Data Management System. Here data is organized into a hierarchical manner. It deals with both methodological and practical aspects of design , implementation and application of data-centric decision support systems powered by the historical process and business data. The paper is written from the product development and corporate prospective and discussions and traps on developers way from the original idea to its commercial use. It has four sub components-Database, files, records, Data elements. It also provide solutions and support for data protection, storage and recovery.
Model Centric DSS
Model is a simplification of some event constructed to help study the event. The model base is the modeling counterpart to the database; it stores and organizes the various models the DSS uses in its analyses. The MBMS (or model base management system) is the counterpart to the DBMS. The Model base is what differentiates a DSS from other information systems. General functions of the MBMS are:- Modeling language- that allows for creation of models, provides a mechanism for linking multiple models. Model libraries- stores and manages all models, provides a catalog and description. Model manipulation- allows for management and manipulation of the model base with functions (run, store, query, etc.) similar to those in a DBMS.
A database is an integrated collection of data, organized and stored in a manner that facilitates its easy retrieval. Importance of DBMS can be illustrated as follows:
It organizes data into logical hierarchy based on the degree of aggregation or granularity of that data. The multitude of data can be organized into files and database must be managed, this important role falls to DBMS (i.e. Database Management System).
The DBMS has two main responsibilities, concern to DSS:
1. The coordination of all tasks related to storing and accessing information in the database and disseminating information to community of DSS.
2. The maintenance of logical independence between the data contained in the DSS database and the DSS application.
Data warehouses provide large amounts of data to the DSS in a form and manner that is more conductive to DSS use.
The role objective, or purpose regarding the design and use of DSS is to make decisions, through procedures and methods which are the valuable parts of DSS and Decision making process. Different decision maker functions performed by DSS:-
- Stimulus
The first step in the process occurs, when the decision maker pre-assumes one or more problem that requires some decision to be made. This can be due to force of some external factors or perception of a difference between current state and desired state of afire, such stimuli can be in form of opportunity feed back threat, and we different from one to other decision maker. There can be some disperses as it is possible that there is no problem, but the decision maker misestimates some fig. and identifies a problem. - Decision maker
The decision maker is truly a “Black Box” in every sense of word. It is also defined as simply next step or event following the onset of stimulus.
Problem DefinitionThe problem solver is means to identify and formulate the problem effectively before starting. The decision process is the crucial phase for successful outcomes of decision making process. In case the problem not properly formulated, then the solution will not be feasible and this will result in wastage of time and effort.
Alternative SelectionsThis phase is crucial in case the DSS provide number of quantitative approaches to solve a problem and there is a set of feasible alternatives to solve the problem. The decision maker with Assistant manager used to choose the best alternative before moving ahead in decision making process. This is the phase where we are least naturally equipped but for its most important effective use of DSS.
ImplementationOnce the decision maker stales for the particular solution, the decision process triggers a course of action for implementing the decision and solving problem, these session require the solution and evaluation of its feasibility in correct scenario.
Some forces, which can make effect on making decisions throughout decision making process; are listed bellow:-
• Economic and environmental forces:- It includes limits of resources, government regulations, moral, ethical, natural decision being consider, competitive market pressure, demand of consumers etc. organizational force like organizational culture policies and procedures, coordination of staffs, degree of interactivity of managers with superiors and sub-ordinate, organizational climate, this include, whether innovative thinking is encouraged, stick implementation of policies and procedure is done.
• Context or Emergent Forces:- A significant force of constraints to the decision problem itself. This category faces issues related skill time requirement, motivation to make a decision and perception of decision maker. These factors have high impact to the context of unambiguous. Other factor like total certainty implies, complete and accurate knowledge regarding outcome information. Genuine uncertainty suggest that outcome of reason can’t determine within the boundary of framework. Always there is some uncertainty, the decision maker assigns some probability to expected degree of outcomes.
Many different types of decision maker must be supported in many different types of problem contexts, that’s why different types of DSS exist. Modules of different types of decision maker has been classified as follows:-
Individual Decision Maker
This class of users essentially works alone during the decision process in the sense that the ultimate generation of a final decision rests solely in their hand.
Multi Decision MakerThis class of decision makers consists of multiple individuals interacting to reach a decision makers to reach a decision. The multiple decision makers involved have a stake in a particular decision outcome and thus are motivated to reach eventually agreement and common commitment to a course of action.
Group Decision Makers
A group decision maker is a characterized by membership in a more formal structure where members of the group share a similar vested interest in the decision outcome and an equal say in its formation, group decision makers generally work in a formal environment that consists of regular meetings devoted to working through the decision process, formal schedules and agendas focusing on specific portion of the process, and often deadlines by which the decision must be finalized and implemented.
Team Decision MakersThis class can be thought of as combination of the individual and group classes. Often an organization structure is such that even though the authority to make a particular decision rests with an individual manager, who is supported by several assistant and working towards goals. Here decision outcomes are often negotiated outcomes, however decisions are normally unilateral in nature. Only one decision maker has the authority and responsibility to make a unilateral decision.
Ans:- Decision style is a term used to describe the manner in which a manner makes decision:- Details are referred as in the Answers of Q.no.5 and Q.no.6 .
Ans:- Simon’s model of Decision theory is indeed based into the concept of “Black Box” decision making process. Regardless of this theoretical approach we embrace, it is important to realize that the development of a good prescriptive approach to decision making – such as the design and implementation of a DSS – is rooted in the development of a workable and sound descriptive theory.
This Simon’s model continues to withstand the test of time and, even today, serves as the basis for most models of management decision making. Notice that the model depicts the problem solving process as a flow of events that can proceed in either a linear or iterative fashion. That is at any point in the process, the problem solver may choose to return the previous steps for additional refinement.
The process begins with the intelligence phase. During this phase the decision maker is “on the lookout” for information or knowledge suggesting the presence of a problem or the need for decision. This scanning activity may be either periodic and continuous in nature. Problems tend to manifest themselves as the noticeable difference between a desired state and the present state Implicit in the “activation” of the problem solving process is the detection of a problem that can be “owned” by the problem solver. If the decision maker of his or her organization can’t solve the problem, then it can’t be owned and therefore doesn’t trigger the next phase of the process. Indeed such conditions tend to be classified as constraints or conditions that may be necessary to consider when solving problems that can be owned.
In 1973, Mintzberg proposed a topology of decisions that focuses attention on the activity with which the decision is most associated:
Entrepreneurial Activities:This type of decision is generally categories by high levels of uncertainty. The section of alternatives is motivated primarily by proactive considerations and is typically focused on near term growth over long term issues.
Adaptive activation: Also categorized by high levels of uncertainty these types of decisions are typically motivated by reactive considerations and are focused more on the short term issues at hand.
Planning activitiesThis decision environment is categorized by high risk and the decisions made are motivated by both proactive and reactive considerations. The focus here is more on growth and efficiency over the long term.
The support necessary for decisions classified in this manner would be determined primarily by the environment in which the decision was being made rather than by actual structure of the decision itself. In this regard, Mintzberg’s classification suggests a differential based on decision strategy rather than decision structure.
The term organizational culture is widespread in the literature of organizational behavior, theory, structure and management. These are also said as the basic assumptions and beliefs that are shared by the members of the organization or said as “ Just the way things are done around here”. Regardless of the sources of definitions, they also seem to have a common denominator: shared meaning, who defines organizational culture experts an extremely powerful influence over the activities, including decision making, of an organization. Robbins in 1990, identified 10 characteristics of this Organizational Culture. These are as follows:
Individual Initiatives The degree of responsibility, freedom, and independence that individuals have.Risk ToleranceThe degree to which employees are encouraged to be aggressive, innovative and risk seeking.
DirectionThe degree to which organization creates clear objective and performance expectations.
IntegrationThe degree to which units within the organization are encouraged to operate in a coordinated manner.
Management SupportThe degree to which managers provide clear communication, assistance and support to their subordinate.
ControlThe number of rules and regulations and the amount of direct supervision that are used to oversee and control employee behavior.
Identity The degree to which members identify with the organization as a whole rather than with their particular work group or field of professional expertise.
Reward System The degree to which reward allocations are based on employee performance criteria in contrast to seniority, favoritism, etc.
Conflict ToleranceThe degree to each employees are encouraged to air conflicts and criticisms openly.
Communication Pattern- The degree to which organizational communications are restricted to the formal hierarchy of authority.
An Organizational Decision Support System can be thought of a support technology that focuses on decisions involving people of organization. Four activities along with a listing of several types of ODSS functions that may be relevant in support of the activities are listed as follows:-
1. Specific Task:- These context include new product development and improved manufacturing process.
2. Information Gathering:- Information is not necessarily gathered in response to a specific need or crisis but rather as a form of “stock on hand”. As such gathering and use are asynchronous.
3. Communication Across Subunit:- This entails the use of information for ongoing coordination of activities and implementation of design.
4. Political Behavior:- Competing interests, scarcity of resources, and behavior equivocality may give rise to symbolic or strategic use of information.
A few examples are listed bellow, where successful use of DSS has been considered:
1. Schedular employing a predictive agent for use in a television receiver.
2. Athena DSS:- Patient Safety in guidelines (Decision support for hypertension Management).
3. Axigen, (by Parallels).
4. Oracle E-Business Suite (Oracle Database vault certified).
5. Dearworkforce
Factors that affect the design of DSS are listed as follows:-
• Group Structure:- If the decision maker retains sole responsibility and authority to make the decision at hand but employs a formal group of people with defined roles who together provide information or services to the decision maker, then the structure is more representative.
• Group Roles:- Each member of a decision – making body takes one or more specified roles. In the individual structure, all necessary roles are assigned to the sole decision maker: information gatherer, analyzer, DSS user, and so on.
• Group Process:- This process is employed by a decision making body can dramatically affect the type of decisions that can be effectively made by that body, which in turn affects the method or process that can be used to make those types of decision.
• Group Style:- In any decision – making context the various interpersonal relations, consequences of outcome, power and politics and like mindedness can determine both the method and type of decision best assigned to a particular decision making body. The decision maker’s style can affect the process, his or her behavior under specified conditions, and the quality of outcomes.
• Group Norms:- The social psychology of decision making “body” from individual to meta-organizational. Issue relating to shared meaning among the constituents, individual and collective social pressures, genres and prescriptions regarding behavior personal beliefs, and potential sanctions, among others, all serve to shape the decision – making environment within an organization.
As Decision making prospective, can be thought of as a hierarchy of three discrete levels are:-
1. Operations (Ground Level)
2. Tactical (Middle Level)
3. Strategic Level (Upper Level)
The decision makers in an organization are a large and diverse population of individuals. At the foundational or operations level, the line personnel make decisions regarding day to day activities relating to production or services while the line supervisors deploy available resources and make decisions necessary to meet assigned quotes or schedulers.
The tactical level implements decisions made at the highest level of the organization as well as decisions to acquire the resources necessary to maintain desired capabilities and output at the operation level.
The members of the strategic decision making hierarchy of an organization include the senior executives of the largest industrial and service firms in the world, the top administrators of the largest government agencies. This elite group of decision makers, though the smallest of three in number, consists of the principle decision maker in our society.
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