topic 1 human and managerial decison making
Post on 08-Apr-2018
231 Views
Preview:
TRANSCRIPT
-
8/7/2019 Topic 1 Human and Managerial Decison Making
1/21
1
CBSS 4103
DECISION SUPPORT SYSTEMS
TOPIC 1 : HUMAN AND MANAGERIALDECISION MAKING
NORYANTI BT HUSSIN
019 - 7731736ians129@oum.edu.com.my
OPEN UNIVERSITY MALAYSIA,
JLN IBRAHIM SULTAN , 80300 JOHOR BAHRU
-
8/7/2019 Topic 1 Human and Managerial Decison Making
2/21
2
OBJECTIVES
1. Discuss what decision making is and
how managers make decisions.
2. Describe the processes of decision
making.
3. Discuss and distinguish four
categories of decision styles.
4. Express decision effectiveness.
5. Apply a decision support system to
solve a specific type of problem.
OPEN UNIVERSITY MALAYSIA,
JLN IBRAHIM SULTAN , 80300 JOHOR BAHRU
-
8/7/2019 Topic 1 Human and Managerial Decison Making
3/21
3
1.1 INTRODUCTION TO DECISION MAKING
OPEN UNIVERSITY MALAYSIA,
JLN IBRAHIM SULTAN , 80300 JOHOR BAHRU
A decision refers to a conclusion or a
reasoned choice among alternatives.
We make a number of decisions,
personal decisions as well as businessdecisions in our live.
Each decision is constructed by adecision statement, a collection ofalternative and a collection of criteria.
A decision usually involves three steps(Arsham, 2005)
1. A recognition of a need
2. A decision to change
3. A conscious dedication to
implement the decision
-
8/7/2019 Topic 1 Human and Managerial Decison Making
4/21
4
Decision making types may allow foronly three unique systems of making
decisions (Arsham, 2005)
1. INDIVIDUALISM
Which access inequity, relishes
competition and identifies with the rightsand power of the individual.
2. COLLABORATION
Which treats all men as equally important,
exalts collaborative efforts, and identifieswith unlimited democracy.
3. POWER AND AUTHORITY
Which respects power and identifies with
controlling authority
OPEN UNIVERSITY MALAYSIA,
JLN IBRAHIM SULTAN , 80300 JOHOR BAHRU
Decision making is a process ofreasoning among alternatives that are
available for the purpose of
accomplishing a purpose or purposes(Turban, 2005)
Decision making is the study of
identifying and choosing alternativesbased on the values and preferences
of the decision maker and the processof sufficiently reducing uncertainty anddoubt about alternative to allow a
reasonable choice to be made from
among them(Haris, 1998)
Alternative refer to possible decisions
that can be made
-
8/7/2019 Topic 1 Human and Managerial Decison Making
5/21
5
TYPES OF DECISIONS (Harris, 1998)
1. DECISIONS WHETHER
Include the yes/no, either/or
decision that must be made before
selecting an alternative. Should I
buy a new car?. In order to make
this kind of decision, the pro and con
have to be weight.
2. DECISIONS WHICH
Involve a choice of one or more
alternative from among possibilities. The
chosen alternatives are based on how
well each alternative match a set ofpredefined criteria
3. CONTINGENT DECISIONS
Decision that have been made but put on
hold until some conditions are met. For
instance, I have decided to buy a car if I
OPEN UNIVERSITY MALAYSIA,
JLN IBRAHIM SULTAN , 80300 JOHOR BAHRU
In some situations, there are fewalternatives and in other situations
there are thousands.
In making a decision, we may want tooptimize the decision-making criteria.
However, it is impossible to optimize all
criteria at the same time. Thus thedecision maker has to reach acompromise.
-
8/7/2019 Topic 1 Human and Managerial Decison Making
6/21
6
1.2 MANAGERS AND DECISION MAKING
Table 1.1 : Mintzbergs 10 Management RolesOPEN UNIVERSITY MALAYSIA,
JLN IBRAHIM SULTAN , 80300 JOHOR BAHRU
Interpersonal
Figurehead Symbolic head, responsible to perform several routine duties ofa legal or social nature.
Leader Responsible to motivate and active the subordinates as well asresponsible for staffing, training and associated duties.
Liaison Maintain self-developed network of outside contacts andinformers who provide favours and information.
Informational
Monitor Seeks and receives a wide variety of special information todevelop a through understanding of the organization andenvironment, emerge as the nerve center of the organizationsinternal and external information.
Disseminator Transmits information received from outsiders or fromsubordinates to members of the organizations internal andexternal information
Spokesperson Transmits information to outsiders on the organisations plans,policies, actions, result and others, also servers as an expert onthe organisations industry.
Decisional
Entrepreneur Searches the organisation and its environment for opportunitiesand initiates improvement projects to bring about change,
supervises design of certain project
DisturbanceHandler
Responsible for corrective action when the organisation facesimportant unexpected disturbances.
Resource Allocator Responsible for the allocation of organisational resources of allkind in effect the making or approving of all significantorganisational decisions.
Negotiator Responsible for representing the organisation at majornegotiation
-
8/7/2019 Topic 1 Human and Managerial Decison Making
7/21
7
Four categories of organisational decisions
1. STRATEGIC PLANNING is made at upper levels of
organisations management, and the decision made affect
the entire organisations.It involves making decisions in
determining objectives, establishing policies, allocating
resources, controlling organisational performance and
evaluating investment.
2. MANAGEMENT CONTROL or tactical decision, which is made
by middle managers, includes decision processes related to
acquisition and use of resources. It affects a part of the
organisation for a limited time into the future.
3. OPERATIONAL CONTROL includes decisions associated with
the effectiveness of organisational actions, monitoring the
quality of product/service and assessing the needs of
product/service.
4. OPERATIONAL PERFORMANCE involve making day to day
decisions in functional units. The decisions are made toimplement strategic decisions, functional tactics and
operational activities.
OPEN UNIVERSITY MALAYSIA,
JLN IBRAHIM SULTAN , 80300 JOHOR BAHRU
-
8/7/2019 Topic 1 Human and Managerial Decison Making
8/21
8
1.3 DECISION MAKING PROCESS
OPEN UNIVERSITY MALAYSIA,
JLN IBRAHIM SULTAN , 80300 JOHOR BAHRU
There is a continuous flow from one phase
to another. However, at any phase theremay be a return to a previous phase. Every
decision should involve all the phases, at
least minimally. The emphasis on eachphase differs from one decision to anotherdue to the following reasons:-
i. The nature of a decision may
requires a decision maker to
spend more time in one phase
or another.
ii. A decision maker may emphasise
on one phase or another,depending on his/her styles of
behaviour.
-
8/7/2019 Topic 1 Human and Managerial Decison Making
9/21
9
The Intelligence Phase
OPEN UNIVERSITY MALAYSIA,
JLN IBRAHIM SULTAN , 80300 JOHOR BAHRU
The intelligence phase is the first phase in
the decision making process.
Generally, a decision maker has to identifyand define the problem or situation thatrequires a decision.
The scanning activity may be doneperiodically or continuously.
In order to perform the activity, the
decision maker has to review
organisational objectives, search and scanprocedures, and gather relevant data.
This phase also includes the understandingof why the problem occurs, where ithappens and with what effects(Laudon and
Laudon, 1999).
The end product of this phase is a problem
statement.
-
8/7/2019 Topic 1 Human and Managerial Decison Making
10/21
10
The Design Phase
OPEN UNIVERSITY MALAYSIA,
JLN IBRAHIM SULTAN , 80300 JOHOR BAHRU
Generally, design phase involves
developing and analysing possible coursesof action to solve a problem.
In this phase, proposed solutions to theproblem or alternatives are developed.
A decision maker needs to do a lot ofresearch for each available alternative.
The objectives of the decision that is about
to be made should be clear and well
defined.
-
8/7/2019 Topic 1 Human and Managerial Decison Making
11/21
11
The Choice Phase
OPEN UNIVERSITY MALAYSIA,
JLN IBRAHIM SULTAN , 80300 JOHOR BAHRU
The choice phase is the critical phase in
decision making process, where in thisphase a decision maker actually makes a
decision.
This phase includes the search, evaluation
and recommendation of a satisfactory
solution to the model built in the design
phase.
The end product of this phase is a decisionthat can be implemented.
-
8/7/2019 Topic 1 Human and Managerial Decison Making
12/21
12
1.4 DECISION STYLES
OPEN UNIVERSITY MALAYSIA,
JLN IBRAHIM SULTAN , 80300 JOHOR BAHRU
Decision style describes the manners in
which a decision maker makes decision.
The style is reflected in the way theindividual reacted to decision makingtasks, which aspect is important, which
one is of less value, how information is
translated and how to deal with situations.
The effect of decision styles on a decision
outcome depends on the problem context,the decision makers perceptions andpersonal set of values that he/she brings to
the situation.
-
8/7/2019 Topic 1 Human and Managerial Decison Making
13/21
13
Decision Style Model
OPEN UNIVERSITY MALAYSIA,
JLN IBRAHIM SULTAN , 80300 JOHOR BAHRU
The scheme classifies decision style
using two component parts, cognitivecomplexity and value orientation.
These two parts are further used todistinguish four well defined categories
of decision styles, analytical, directive,
conceptual and behavioural.
-
8/7/2019 Topic 1 Human and Managerial Decison Making
14/21
14
1.5 DECISION EFFECTIVENESS
OPEN UNIVERSITY MALAYSIA,
JLN IBRAHIM SULTAN , 80300 JOHOR BAHRU
Decision effectiveness refers to the
successfulness in producing the desired orintended decision.
-
8/7/2019 Topic 1 Human and Managerial Decison Making
15/21
15
1.6 A FRAMEWORK FOR DECISIONSUPPORT
OPEN UNIVERSITY MALAYSIA,
JLN IBRAHIM SULTAN , 80300 JOHOR BAHRU
A framework for decision support was
proposed by Gorry and Scott Morton(1971)after combining the work of Simon (1977)
and Anthony (1965).
-
8/7/2019 Topic 1 Human and Managerial Decison Making
16/21
16
Decision Support Framework
OPEN UNIVERSITY MALAYSIA,
JLN IBRAHIM SULTAN , 80300 JOHOR BAHRU
-
8/7/2019 Topic 1 Human and Managerial Decison Making
17/21
17
1.7 DECISION MAKING PROCESS VS. DSSSUPPORT
OPEN UNIVERSITY MALAYSIA,
JLN IBRAHIM SULTAN , 80300 JOHOR BAHRU
A DSS cannot replace a decision maker.
It is not meant to support all the aspects
that need to be addressed in the decisionmaking process.
However a DSS can provide the decisionmaker with focused support to one or moreactivities within the process of decisionmaking.
-
8/7/2019 Topic 1 Human and Managerial Decison Making
18/21
18
DSS support
OPEN UNIVERSITY MALAYSIA,
JLN IBRAHIM SULTAN , 80300 JOHOR BAHRU
-
8/7/2019 Topic 1 Human and Managerial Decison Making
19/21
19
DSS Technologies that can be used to supportthe Intelligence Phase
OPEN UNIVERSITY MALAYSIA,
JLN IBRAHIM SULTAN , 80300 JOHOR BAHRU
a) Support for the Intelligence
Phase
The areas of support for the
intelligence phase are :-- To identify problems and to
opportunities.
- To interpret information.
- To produce reports.
-
8/7/2019 Topic 1 Human and Managerial Decison Making
20/21
20
DSS Technologies that can be used to supportthe Design Phase
OPEN UNIVERSITY MALAYSIA,
JLN IBRAHIM SULTAN , 80300 JOHOR BAHRU
b) Support for the Design Phase
The areas of support for the
intelligence phase are :-
- To generate alternative- To discuss criteria of choice.
& their relative importance
- To forecast the future.
consequences using various
alternatives.
-
8/7/2019 Topic 1 Human and Managerial Decison Making
21/21
21
DSS Technologies that can be used to supportthe Choice Phase
OPEN UNIVERSITY MALAYSIA,
JLN IBRAHIM SULTAN , 80300 JOHOR BAHRU
c) Support for the Choice Phase
The areas of support for the
choice phase is to identify
satisfactory alternatives.
top related