Levels of Decision making
Strategic decision making made by managers who are knowledge based and are used to dealing with major problems in the company. These managers are there to provide the necessary support for the organisation and normally work in small groups.
First we should know that there are 3 different forms of decision making:
° Structured decisions
° Un-Structured decisions
Structured decisions: by contrast are repetitive, routine and involve a definite procedure for handling.
Unstructured decisions Where by a manager has to provide judgement, evaluation and insights into the problem definition.
Semi-structured decisions: clear cut answers provided by an accepted procedure.
Stages for making decisions include:
Intelligence: this method used by managers where through the gathering of information they can identify how well the organisation is performing, also where and when problems occur.
Design: at this stage managers can identify alternative solutions to the design and what level of intelligence is needed and it is also an appropriate solution to the problem. DSS can be used here for its simplicity and quick development.
Choice: through information tools management can chose among alternatives to calculate and keep track of consequences cost and opportunities. A larger DSS is used to develop e extensive data in a wider variety of alternatives and the use of more analytic models to address for all the consequences.
Implementation, this is reporting on specific solutions and possible improvement actions.
Traditional MIS is information that can help identify problems in a system.
DSS can be used specifically in the design stage because these are simple models that can be quickly develop and with limited data.
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