This Chapter includes information on Management and the decision-making process. there is information on what bases the organization takes a decision and how an effective decision is being taken. it also includes types of decision, Decision-making process, and charactristic of effective information.

1. Management &
Decision Making
Abdul Rashed Barakzai
Chapter # 3

3. Introduction
As companies migrate toward responsive e-business model, they are
investing in new data driven decision application frameworks that helps
them respond rapidly to changing market and customer need
 Successful Business Companies needs MIS to drive information that
can support decision making.
 Managers, Professionals, and High level Management are responsible
for taking decision to implement change
 Roll of Internet, Intranet, and web sites on Business

4. Level of
Management
Decision
making
 Every organization has different Level of management Decision
Making
 Level of Management Decision making still Exists
 Shape, Size and participants can be changed
 Culture of Decision Making
Management Decision making must be Supported by Information
technology
Successful Organization Take Decision Base on:
 Strategic Management
 Tactical Management
 Operational Managment

5. Strategic Management: Typically, a board of directors and an executive
committee of the CEO and top executives develop overall organizational
goals, strategies, policies, and objectives as part of a strategic planning
process. They also monitor the strategic performance of the organization
and its overall direction in the political, economic, and competitive
business environment.
1- Strategic
Management:

6. Tactical Management: Increasingly, business professionals in self-directed teams as
well as business unit managers develop short- and medium-range plans, schedules,
and budgets and specify the policies, procedures, and business objectives for their
subunits of the company. They also allocate resources and monitor the performance
of their organizational subunits, including departments, divisions, process teams,
project teams, and other workgroups.
2- Tactical
Management:

7. Operational Management: The members of self-directed teams or operating
managers develop short-range plans such as weekly production schedules. They
direct the use of resources and the performance of tasks according to procedures and
within budgets and schedules they establish for the teams and other workgroups of
the organization.
3- Operational
management

8. Continue…

9. 1- Unstructured Decisions: are those in which the decision maker must provide
judgment, evaluation, and insights into the problem definition. Each of
these decisions is novel, important, and nonroutine, and there is no well-understood
or agreed-on procedure for making them. ( Strategic Level Management)
2- Semi-Structured Decision: is one in which most of the factors needed
for making the decision are known but human experience and other outside factors
may still play a role. A good example of an semi-structured decision would be
diagnosing a medical condition ( Tactical Level Management)
3- Structured decision: Making is an approach for careful and organized analysis
of natural resource management decisions. Every decision consists of several
primary Procedute. ( Operational Level Management)
Type of
Decision
( Level of
Management)

10. 1. Decision Making Process: is Making choices by identifying a decision,
gathering information, and assessing alternative resolutions. Using a step by step
decision making process.
2. Decision Making Process: is a series of steps taken to determine the best option
to be selected among different alternative. It helps to take the right decision.
3. Decision Making Process: Is the process of making choices by identifying a
decision, gathering information, and assessing alternative resolutions. Using a
step-by-step decision-making process can help you make more deliberate,
thoughtful decisions by organizing relevant information and defining
alternatives. This approach increases the chances that you will choose the most
satisfying alternative possible.
Decision
Making
Process

11. Continue…

12. Identify the decision: In this stage you realize that you need to take the decision. We
need to clearly define the nature of decision. The is very important stage and needs to
be taken very carefully and should take longer time for the decision.
1. Identify the Decision
2. Gather the information
3. Identify alternatives
4. weigh the evidence
5. Choose amongAlternatives
6. TakeAction
7. Review your Decision

13. • Collect relevant information before we take decision
• Select the trustable source of information
• This step involves both internal and external work
• Some information can be internal and needs self-Assessment
• Some information can be external needs to be searched ( Online, Book, people &
etc)
1. Identify the Decision
2. Gather the information
3. Identify alternatives
4. weigh the evidence
5. Choose amongAlternatives
6. TakeAction
7. Review your Decision

14. As you collect information, you will probably identify several possible paths of
action, or alternatives. You can also use your imagination and additional information
to construct new alternatives. In this step, you will list all possible and desirable
alternatives.
1. Identify the Decision
2. Gather the information
3. Identify alternatives
4. weigh the evidence
5. Choose amongAlternatives
6. TakeAction
7. Review your Decision

15. Draw on your information and emotions to imagine what it would be like if you
carried out each of the alternatives to the end. Evaluate whether the need identified in
Step 1 would be met or resolved through the use of each alternative. As you go
through this difficult internal process, you’ll begin to favor certain alternatives: those
that seem to have a higher potential for reaching your goal. Finally, place the
alternatives in a priority order, based upon your own value system.
1. Identify the Decision
2. Gather the information
3. Identify alternatives
4. weigh the evidence
5. Choose amongAlternatives
6. TakeAction
7. Review your Decision

16. Once you have weighed all the evidence, you are ready to select the alternative that
seems to be the best one for you. You may even choose a combination of
alternatives. Your choice in Step 5 may very likely be the same or similar to the
alternative you placed at the top of your list at the end of Step 4.
1. Identify the Decision
2. Gather the information
3. Identify alternatives
4. weigh the evidence
5. Choose amongAlternatives
6. TakeAction
7. Review your Decision

17. You’re now ready to take some positive action by beginning to implement the
alternative you chose in Step 5
1. Identify the Decision
2. Gather the information
3. Identify alternatives
4. weigh the evidence
5. Choose amongAlternatives
6. TakeAction
7. Review your Decision

18. Review your decision & its consequences In this final step, consider the results of
your decision and evaluate whether or not it has resolved the need you identified in
Step 1. If the decision has not met the identified need, you may want to repeat certain
steps of the process to make a new decision. For example, you might want to gather
more detailed or somewhat different information or explore additional alternatives
1. Identify the Decision
2. Gather the information
3. Identify alternatives
4. weigh the evidence
5. Choose amongAlternatives
6. TakeAction
7. Review your Decision

19. 1. Availability/accessibility: Information may be useless if it is not readily
accessible in the desired form, when it is needed. Advances in technology have
made information more accessible today than ever before.
2. Reliability or objectivity: The information should be counted on to be
trustworthy. It should be accurate, consistent with facts and verifiable. Inadequate
or incorrect information generally leads to decisions of poor quality.
3. Relevance/appropriateness: Information is good only if it is relevant. This
means that it should be pertinent and meaningful to the decision maker and
should be in his area of responsibility.
4. Completeness: It should contain all the facts that are necessary for the decision
maker to satisfactorily solve the problem at hand using such information.
Nothing important should be left out. Although information cannot always be
complete, every reasonable effort should be made to obtain it
Characteristic of
Effective Information

20. 5. Concise: Too much information is a big burden on management and cannot be
processed in time and accurately due to “bounded rationality”. Bounded
rationality determines the limits of the thinking process which cannot sort out
and process large amounts of information. Accordingly, information should be to
the point and just enough – no more, no less.
6. Timely: Information must be delivered at the right time and the right place to the
right person. Premature information can become obsolete or be forgotten by the
time.
7. Cost-effective: The information is not desirable if the solution is more costly
than the problem. The cost of gathering data and processing it into information
must be weighed against the benefits derived from using such information
8. Understandable: Information must be understood by the receiver so that he/She
will interpret it correctly. Information must be able decodable to any
abbreviations, shorthand notations or any other acronyms contained in the
information.
Characteristic of
Effective Information

21. The contingency approach is a management theory that suggests the
most appropriate style of management is dependent on the context of the
situation and that adopting a single, rigid style is inefficient in the long term.
Contingency managers typically pay attention to both the situation and their own
styles and make efforts to ensure both interact efficiently.
Contingency
Approach