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The decision making systems can be classified in a number of ways. There are two types of systems based on the manager’s knowledge about the environment. A . Closed decision making system : If the manager operates in a known environment then it is a closed decision making system. The conditions of the closed decision making system are: (a) The manager has a known set of decision alternatives and knows their outcomes fully in terms of value, if implemented. (b) The manager has a model, a method or a rule whereby the decision alternatives can be generated, tested, and ranked. (c) The manager can choose one of them, based on some goal or objective. A few examples are: a product mix problem, an examination system to declare pass or fail, or an acceptance of the fixed deposits. B. Open decision making system: If the manager operates in an environment not known to him, then the decision making system is termed as an open decision making system. The conditions of this system are:

How do we ensure rationality ? It is ensured, if the process of decision making is carried out systematically, whereby all the aspects of the decision making discussed above are taken care of. Herbert Simon said that a decision maker follows the process of decision making disregarding the decision or the type of decision and the motive behind the decision. This process is followed consciously or without knowing it. We can put this process in the Decision Making Mode. Simon (1977) describes the process of decision making as comprising four steps: 1.Intelligence 2.Design 3.Choice 4.Later stage has been added with a view of improving the decision i.e. Review . The intelligence stage: encompasses collection, classification, processing, and presentation of data relating to the organization and its environment. This is necessary to identify situations calling for decision. During the design stage: , the decision maker outlines alternative solutions, each of which involves a set

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 delegate

We use our decision making skills to solve problems by selecting one course of action from several possible alternatives. Decision making skills are also a key component of time management skills. Decision making can be hard. Almost any decision involves some conflicts or dissatisfaction. The difficult part is to pick one solution where the positive outcome can outweigh possible losses. Avoiding decisions often seems easier. Yet, making your own decisions and accepting the consequence is the only way to stay in control of your time, your success, and your life. http://www.scribd.com/doc/18046759/Chapter-2-various-concepts-of-MIS TYPES OF DECISIONS The types of decisions are based on the degree of knowledge about the outcomes or the events yet to take place. If the manager has full and precise knowledge of the event or outcome which is to occur, then his problem of the decision making is not a problem. If the manager has full knowledge, then it is a situation of certainty. If he