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NATURE OF DECISIONv [MIS}


Decision making is a complex situation. To resolve the complexity, the decisions are classified as
  • programmed
  • non-programmed decisions.

If a decision can be based on a rule, method or even guidelines, it is called the programmed decision. If the stock level of an item is 200 numbers, then the decision to raise a purchase requisition for 400 numbers is a programmed-decision-making situation. The decision maker here is told to make a decision based on the instructions or on the rule of ordering a quantity of 400 items when its stock level reaches 200.If such rules can be developed wherever possible, then the MIS itself can be designed to make a decision and even execute. The system in such cases plays the role of a decision maker based on a given rule or a method. Since the programmed decision is made through MIS, the effectiveness of the rule can be analyzed and the rule can be revived and modified from time to time for an improvement. The programmed decision making can be delegated to a lower level in the management cadre.

A decision which cannot be made by using a rule or a model is the non-programmed decision. Such decisions are infrequent but the stakes are usually larger. Therefore, they cannot be delegated to the lower level. The MIS in the non-programmed-decision situation can help to some extent, in identifying the problem, giving the relevant information to handle the specific decision making situation. The MIS, in other words, can develop decision support systems in the non-programmed-decision-making situations.

FOUR ESSENTIAL DESCISIONS

1.Consider solutions

2.Choose a solution

3.Is there a problem or opportunity?

4.Is the choice working?

A significant part of decision making skills is in knowing and practicing good decision making techniques. One of the most practical decision making techniques can be summarized in those simple decision making steps:

  1. .Identify the purpose of your decision. What is exactly the problem to be solved? Why it should be solved?
  2. Gather information. What factors does the problem involve?
  3. Identify the principles to judge the alternatives. What standards and judgment criteria should the solution meet?
  4. Brainstorm and list different possible choices. Generate ideas for possible solutions.
  5. Evaluate each choice in terms of its consequences. Use your standards and judgment criteria to determine the cons and pros of each alternative.
  6. Determine the best alternative. This is much easier after you go through the above preparation steps.
  7. Put the decision into action. Transform your decision into specific plan of action steps. Execute your plan.
  8. Evaluate the outcome of your decision and action steps. What lessons can be learnt? This is an important step for further development of your decision making skills and judgment.

http://www.scribd.com/doc/18046759/Chapter-2-various-concepts-of-MIS

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