• Management is a process by which
organizational goals are achieved through the
use of resource (people, money, energy,
materials, space, time).
• These resources are considered to be inputs;
• The attainment of the goals is viewed as the
output of the process;
• The ratio between inputs and outputs is an
indication of the organization’s productivity..
Managers and Decision
• Decision refers to a choice that individuals
and group make among two or more
• Decision making is a systematic process
composed of three major phases: intelligence,
design and choice (Simon 1977)
• Implemetation phase was added later.
The Manager’s Job &
Decision Making (Continued)
• A key to good decision making is to explore
and compare many relevant alternatives. The
more alternatives that exist, the more
computer-assisted search and comparison are
• Typically, decisions must be made under time
pressure. Frequently it is not possible to
manually process the needed information fast
enough to be effective.
Why Managers Need IT
• It is usually necessary to conduct a
sophisticated analysis in order to make a good
decision. Such analysis requires the use of
• Decision makers can be in different locations
and so is the information. Bringing them all
together quickly and inexpensively may be a
Why Managers Need It
Information systems that provide
support for managerial decision-
making (i.e. decision support
systems (DSSs), group DSSs,
organizational DSSs, executive
Information systems that actually
make a decision (i.e. expert
Managerial Support Systems
• Decision support systems (DSSs) provide
support primarily to analytical, quantitative
types of decisions.
• Executive support systems (ESSs) support the
informational roles of executives.
• Group decision support systems (GDSSs)
supports managers and staff working in
What Information Technologies
are available to support
◦ Common decisions
◦ Procedures to make the decision are known in advance
◦ Routine an repetitive
◦ Procedures to make the decision cannot be specified in
◦ Less common decisions
◦ Fuzzy problems without obvious solutions
◦ In between
• The second dimension of decision support deals with
the nature of decisions
• operational control – executing specific tasks
efficiently and effectively;
• management control – acquiring and using
resources efficiently in accomplishing
• strategic planning – the long range goals and
policies for growth and resource allocation.
The Nature of Decisions
• The decision matrix consists of the 3 primary
classes of problem structures and the 3 broad
categories of the nature of decisions
combined in a matrix.
• Computer support for structured decisions is
for each structured decision, prescribed
solutions have been developed through the
use of mathematical functions. This approach
is called management science or operations
• Computer-based information systems that provide
interactive information support to managers and
business professionals during the decision-making
process using the following to make semi-structured
or unstructured business decisions
• Analytical models
• Specialized databases
• A decision maker’s own insights and judgments
• An interactive, computer-based modeling process
Decision Support Systems
• DSSs can examine numerous alternatives very
• DSSs can provide a systematic risk analysis.
• DSSs can be integrated with communications
systems and databases.
• DSSs can be used to support group work.
• DSSs can perform these functions at relatively
• Data management subsystem contain all the data
that flow from several sources.
• Model management subsystem contains completed
models and the building blocks necessary to develop
DSS applications. (often referred to as “model base”)
• User interface covers all aspects of the
communications between a user and the DSS.
• Users are the persons faced with the problem or
decision that the DSS is designed to support.
• Knowledge-based subsystems provide the required
expertise for solving some aspects of the problem.
Structure and Components of
• Information systems that provide top
executives, managers, analysts, and other
knowledge workers with immediate and easy
access to information about a firm’s key
factors that are critical to accomplishing an
organization’s strategic objectives
• Information presented in forms tailored to the
preferences of the executives using the
• Customizable graphics displays
• Exception reporting
• Trend analysis
• Drill down capability
Features of an EIS
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