This document discusses concepts related to decision making, including:
- Decision making is a choice made between several options to achieve objectives. It is a complex, sequential process influenced by personal values.
- Rational decisions efficiently achieve goals. There are different types of rationality depending on factors like objectivity, consciousness, and organization.
- Herbert Simon's model of the decision making process has three phases: intelligence, design, and choice.
- Decision making systems can be "closed" if the environment is known, or "open" if it is unknown. The type of decision depends on the level of knowledge about outcomes.
The evolution of management information systemCheryl Asia
The document discusses the evolution of management information systems (MIS) from the early use of punch cards through five eras of centralized and decentralized systems to today's cloud-based systems. It traces the progression from manual looms using punch cards in the early 1800s to the emergence of mainframe computers in the 1960s enabling the first centralized MIS. By the 1980s, systems became more decentralized as departments obtained their own computers, followed by widespread internet adoption in the 1990s integrating information across companies. The current era is defined by ubiquitous access to cloud-based systems on multiple platforms, blurring the lines between information producers and consumers.
The document discusses internal control, internal check, internal audit, and the differences between internal check and internal audit. It defines internal control as the system established by management to carry out business operations in an orderly manner. The objectives of internal control are to avoid inefficiency, waste, and fraud, and ensure accuracy of records. Internal check is a part of internal control that divides work so no single person can carry out a whole transaction alone. Internal audit involves examining procedures, records, and operations to evaluate management controls and ensure goals are met. It differs from internal check in that internal check mechanically checks work as it is performed while internal audit examines work after it is completed.
The document provides an overview of strategic management. It defines strategy and discusses the different levels of strategy - corporate, business, and functional. It then defines strategic management as setting long-term goals and implementing plans to achieve them. The document outlines the key components of strategic management, including environmental scanning, strategy formulation, implementation, and evaluation. For strategy formulation, it discusses analyzing the internal and external environment through SWOT analysis to identify the best course of action. It also explains the process of implementing, evaluating, and controlling strategies.
UNIT II - DECISION THEORY - QTBD - I MBA - I SEMRamesh Babu
THIS IS MATERIAL FOR DECISION THEORY IN QUANTITATIVE TECHNIQUES FOR DECISION THEORY IN M.B.A I YEAR I SEMESTER AFFILIATED TO JNTUK. I HOPE THIS MATERIAL WILL HELPS THE M.B.A. STUDENTS. REMAINING MATERIAL WILL BE UPDATED COMING SOON......
Management involves planning, organizing, directing, and controlling organizational activities and resources to achieve goals. Scientific management theories developed methods for breaking down jobs and setting productivity standards, while classical theories identified key management functions and principles. Later, the human relations movement emphasized that non-financial rewards and good working conditions motivate employees through satisfying informal work groups. Current approaches integrate multiple factors in managing complex organizations.
Managerial decision making involves responding to opportunities and threats by analyzing options and choosing courses of action. There are two types of decisions - programmed decisions which are routine, and non-programmed decisions which are unusual situations with no set rules. The classical model assumes all information is available, but the administrative model recognizes information is often incomplete. Effective decision making involves framing the problem, generating alternatives, evaluating alternatives, choosing an alternative, implementing it, and learning from feedback. Group decision making can reduce biases but risks groupthink; techniques like devil's advocacy and diversity can improve it. Organizational learning and creativity help decision making by challenging assumptions and encouraging new ideas.
This document provides an overview of decision theory and techniques for decision-making under uncertainty. It discusses three decision environments: certainty, risk, and uncertainty. Under certainty, the outcome is known so the alternative with the best payoff for that outcome is chosen. Under risk, outcomes have known probabilities so expected monetary value is calculated for each alternative to determine the choice. Under uncertainty, techniques like maximin, maximax, and minimax regret are used when probabilities are unknown. Decision trees and payoff tables are presented as tools to analyze multi-step decisions and compare alternative payoffs under different outcomes. Examples demonstrate how to apply expected value and other approaches to make the best decision under various conditions of uncertainty.
Internal control is defined as a process for assuring achievement of an organization's objectives relating to operational efficiency, reliable financial reporting, and compliance with laws. It involves directing, monitoring, and measuring how an organization's resources are used. Internal control plays an important role in preventing and detecting fraud and protecting both physical and intangible assets. An effective internal control system includes preventive, detective, and corrective controls to mitigate risks and ensure objectives are met. However, limitations exist as controls rely on human judgment and can be overridden or circumvented.
The evolution of management information systemCheryl Asia
The document discusses the evolution of management information systems (MIS) from the early use of punch cards through five eras of centralized and decentralized systems to today's cloud-based systems. It traces the progression from manual looms using punch cards in the early 1800s to the emergence of mainframe computers in the 1960s enabling the first centralized MIS. By the 1980s, systems became more decentralized as departments obtained their own computers, followed by widespread internet adoption in the 1990s integrating information across companies. The current era is defined by ubiquitous access to cloud-based systems on multiple platforms, blurring the lines between information producers and consumers.
The document discusses internal control, internal check, internal audit, and the differences between internal check and internal audit. It defines internal control as the system established by management to carry out business operations in an orderly manner. The objectives of internal control are to avoid inefficiency, waste, and fraud, and ensure accuracy of records. Internal check is a part of internal control that divides work so no single person can carry out a whole transaction alone. Internal audit involves examining procedures, records, and operations to evaluate management controls and ensure goals are met. It differs from internal check in that internal check mechanically checks work as it is performed while internal audit examines work after it is completed.
The document provides an overview of strategic management. It defines strategy and discusses the different levels of strategy - corporate, business, and functional. It then defines strategic management as setting long-term goals and implementing plans to achieve them. The document outlines the key components of strategic management, including environmental scanning, strategy formulation, implementation, and evaluation. For strategy formulation, it discusses analyzing the internal and external environment through SWOT analysis to identify the best course of action. It also explains the process of implementing, evaluating, and controlling strategies.
UNIT II - DECISION THEORY - QTBD - I MBA - I SEMRamesh Babu
THIS IS MATERIAL FOR DECISION THEORY IN QUANTITATIVE TECHNIQUES FOR DECISION THEORY IN M.B.A I YEAR I SEMESTER AFFILIATED TO JNTUK. I HOPE THIS MATERIAL WILL HELPS THE M.B.A. STUDENTS. REMAINING MATERIAL WILL BE UPDATED COMING SOON......
Management involves planning, organizing, directing, and controlling organizational activities and resources to achieve goals. Scientific management theories developed methods for breaking down jobs and setting productivity standards, while classical theories identified key management functions and principles. Later, the human relations movement emphasized that non-financial rewards and good working conditions motivate employees through satisfying informal work groups. Current approaches integrate multiple factors in managing complex organizations.
Managerial decision making involves responding to opportunities and threats by analyzing options and choosing courses of action. There are two types of decisions - programmed decisions which are routine, and non-programmed decisions which are unusual situations with no set rules. The classical model assumes all information is available, but the administrative model recognizes information is often incomplete. Effective decision making involves framing the problem, generating alternatives, evaluating alternatives, choosing an alternative, implementing it, and learning from feedback. Group decision making can reduce biases but risks groupthink; techniques like devil's advocacy and diversity can improve it. Organizational learning and creativity help decision making by challenging assumptions and encouraging new ideas.
This document provides an overview of decision theory and techniques for decision-making under uncertainty. It discusses three decision environments: certainty, risk, and uncertainty. Under certainty, the outcome is known so the alternative with the best payoff for that outcome is chosen. Under risk, outcomes have known probabilities so expected monetary value is calculated for each alternative to determine the choice. Under uncertainty, techniques like maximin, maximax, and minimax regret are used when probabilities are unknown. Decision trees and payoff tables are presented as tools to analyze multi-step decisions and compare alternative payoffs under different outcomes. Examples demonstrate how to apply expected value and other approaches to make the best decision under various conditions of uncertainty.
Internal control is defined as a process for assuring achievement of an organization's objectives relating to operational efficiency, reliable financial reporting, and compliance with laws. It involves directing, monitoring, and measuring how an organization's resources are used. Internal control plays an important role in preventing and detecting fraud and protecting both physical and intangible assets. An effective internal control system includes preventive, detective, and corrective controls to mitigate risks and ensure objectives are met. However, limitations exist as controls rely on human judgment and can be overridden or circumvented.
Three dimensions of information systemsSuleyman Ally
An information system is a set of interconnected components that collect, process, store, and disseminate information to support decision making and coordination in an organization. Information systems are critical to business operations and success, ensuring improved decision making, operational excellence, competitive advantage, and organizational survival. An information system incorporates three dimensions: organizational, management, and technology. The organizational dimension involves business processes and culture. The management dimension supplies tools and information for managers. The technology dimension consists of hardware, software, storage, and networking that underpin information systems.
Management involves coordinating individual and group efforts to efficiently accomplish goals. There are many approaches to management that vary based on the situation. Classical approaches like scientific, administrative, and bureaucratic management focused on productivity and organizational structure. Behavioral approaches emphasized the importance of human behavior and motivation. Contingency theory recognizes that the best management approach depends on internal and external situational factors.
Mr. Brown, the owner of a fashion store, engaged in several management functions to improve his business. He planned by installing a security system, wind resistant windows, and preparing for market trends. He organized by putting sales and purchase records into folders. He staffed by hiring a sales representative and training existing employees. He controlled by having a three-week 20% sale. He led by assigning tasks to customer service attendants to ensure goals were met and customers satisfied.
The document discusses inventory management concepts including economic order quantity (EOQ) models. It defines key inventory costs: ordering/setup costs, holding/carrying costs, shortage costs. The EOQ model balances ordering and carrying costs to determine the optimal order quantity. An example calculates the EOQ, annual carrying cost, ordering cost, and total annual cost for a company with constant demand and known costs and demand values. The optimal order quantity minimizes total annual inventory costs.
Managerial roles can be categorized into three types: interpersonal roles, informational roles, and decisional roles. Interpersonal roles include serving as the symbolic leader (figurehead) and motivating subordinates. Informational roles involve monitoring the external environment, disseminating information internally, and communicating with external stakeholders. Decisional roles consist of seeking new opportunities (entrepreneur), handling disturbances, allocating resources, and negotiating on behalf of the organization.
The Philippines' Competitive Advantage on Business Environment in Comparison ...Arangkada Philippines
This document discusses the competitive advantages of the Philippines for business compared to other Asian countries from the perspective of the Japan External Trade Organization (JETRO). It outlines that the Philippines has competitive advantages in terms of cost competitiveness, quality of human resources, and government incentives. It also notes that strengthening industrial linkages, manufacturing sectors, and infrastructure would further improve the investment environment. The document provides data on sources of profits for Japanese companies by region, salaries for various roles in manufacturing and non-manufacturing sectors, and reasons for Japanese companies establishing operations in different Asian cities.
This document discusses decision theory and decision making under uncertainty. It outlines the steps in decision theory as determining alternative actions, possible outcomes or states of nature, and constructing a payoff table to choose the alternative with the largest payoff. It describes four types of decision making environments - certainty, uncertainty, risk, and conflict - and gives criteria for decision making under uncertainty, including minimax, maximin, maximax, minimin, Laplace, and Hurwicz criteria. It provides an example applying these criteria to a farmer choosing which crop to plant.
Management involves directing and coordinating the work of others to efficiently achieve organizational goals. It includes five core functions: planning, organizing, staffing, leading, and controlling. Planning involves setting goals and strategies. Organizing determines how work will be done and who will do it. Staffing involves recruiting and maintaining staff. Leading motivates people. Controlling monitors progress to ensure plans are followed. Management aims to maximize efficiency in resource use and effectiveness in goal achievement.
Classical & Neo classical theory of managementOliviaJustin
This document provides an overview of several management theories: classical theory, scientific management, administrative management, bureaucratic management, neo-classical theory, human relations theory, and behavioral science approach. It defines each theory, discusses their key contributors like Taylor, Fayol, and Mayo, and summarizes their main principles and concepts. The document traces the evolution of management thought from a focus on efficiency under classical theory to consideration of human factors in neo-classical, human relations, and behavioral theories.
This document outlines the principles, definitions, functions, and levels of management. It discusses key concepts such as the four functions of management (planning, organizing, leading, controlling), managerial skills (conceptual, human, technical), and roles of managers (interpersonal, informational, decisional). It provides an overview of management topics that will be covered in 15 chapters from the prescribed textbook.
This document provides an overview of key concepts in decision making covered in Chapter 16 of the textbook "Statistics for Managers Using Microsoft Excel". It begins by listing the chapter goals, which include describing decision making processes, constructing decision tables, applying expected value criteria, and accounting for risk attitudes. It then outlines the typical steps in decision making, such as listing alternatives and possible outcomes. Key decision making criteria are defined, like expected monetary value, expected opportunity loss, and value of perfect information. Examples are provided to demonstrate how to apply these concepts to make optimal decisions under uncertainty.
Routine decisions are decisions that people make hundreds of times each day without much thought based on established routines. These routine decisions are usually sufficient but sometimes fail, providing an opportunity to improve decision-making. Decisions in organizations can be strategic, tactical, or operational. Strategic decisions are made by top management and involve long-term goals and resource allocation, while individual decisions are influenced most by perception. Group decisions assess the organization's direction using tools like SWOT and aim for consensus without clear winners or losers.
There are two types of line organization: pure line organization and departmental line organization. Pure line organization has all persons at the same level performing the same type of work solely for control and direction purposes. Departmental line organization divides the enterprise into different departments for convenient control, with unity of control and a line of authority that flows from the top to the bottom.
The document discusses several theories related to management and organizational behavior, including contingency theory, technology determinism, and stakeholder theory. Contingency theory claims there is no single best way to organize and that the optimal approach depends on internal and external factors. Technology determinism argues technologies directly impact organizational attributes like span of control. Stakeholder theory identifies six groups that influence organizations: technology, suppliers, customers, government, unions, and consumer groups.
Herbert Simon developed a three step model of decision making: 1) The intelligence phase where the problem is identified and information is collected; 2) The design phase where possible solutions are developed; 3) The choice phase where one solution is selected. Simon's model provides a structured approach to decision making by breaking it down into distinct phases: defining the problem, generating alternatives, and making a selection.
The document discusses the various factors of a business environment and their influence on business operations. It defines business environment as the total external and internal factors that influence business decisions and functioning. The key factors discussed include economic, social, political, legal, demographic, technological and natural environment factors. It emphasizes the importance of understanding the business environment for successful business operations.
This chapter introduces operations management. It defines operations management as managing the systems or processes that create goods and services. The chapter outlines the key functional areas of organizations and how operations management affects a company's ability to compete. It compares manufacturing and service operations, describing their differences in areas like customer contact, input and output variability, and inventory levels. The chapter also discusses the role of the operations manager in making both system design and operation decisions. Finally, it provides an overview of trends impacting operations management like globalization and supply chain management.
Transaction processing systems (TPS) support routine operations and management while management information systems (MIS) provide decision-making support using data from TPS. MIS can address structured problems through optimization, satisficing, or heuristics models. They provide managers with regular reports from various functional areas like finance, manufacturing, marketing, logistics, and human resources to control and plan operations. Decision support systems (DSS) are used for unstructured problems through flexible presentation of internal and external data with simulation and statistical analysis to support multiple decision approaches.
The document discusses the evolution of management theories from the Industrial Revolution to modern times. It covers early theories like Scientific Management and the Hawthorne Effect. It also covers modern theories such as Maslow's hierarchy of needs, McGregor's Theory X and Y, Ouchi's Theory Z, and Total Quality Management including Deming's 14 points. International management styles are also discussed, comparing practices in Thailand and Japan.
The document discusses several key concepts in management:
1. It defines management as tactfully managing men, technology, teams, competencies, objectives, and resources to achieve results.
2. Several management theorists are discussed, including their definitions of management and contributions to the field.
3. The five universal management functions are identified as planning, organizing, coordinating, motivating, and controlling.
Chapter 5 information and knowledge(b&w)Ajay Ardeshana
This document discusses concepts related to information and knowledge in the context of a Management Information System (MIS). It defines information and how it differs from data, providing characteristics of information. It also discusses how information is communicated from a source to a destination, with the potential for noise and distortion. Finally, it outlines some methods for presenting, summarizing and routing information to various receivers.
The document discusses a chapter on information and management from a textbook. It begins with contact information for the author, Ajay A. Ardeshana, and an overview of topics to be covered in the chapter, including the difference between data and information, types of information, levels of management, and attributes of quality information. The chapter then defines data and information, provides examples of how data is processed into information, and categorizes information into strategic, tactical, and operational types based on its purpose, user, structure, and complexity. Reasons for needing computer-based information systems and management structure are also outlined.
Three dimensions of information systemsSuleyman Ally
An information system is a set of interconnected components that collect, process, store, and disseminate information to support decision making and coordination in an organization. Information systems are critical to business operations and success, ensuring improved decision making, operational excellence, competitive advantage, and organizational survival. An information system incorporates three dimensions: organizational, management, and technology. The organizational dimension involves business processes and culture. The management dimension supplies tools and information for managers. The technology dimension consists of hardware, software, storage, and networking that underpin information systems.
Management involves coordinating individual and group efforts to efficiently accomplish goals. There are many approaches to management that vary based on the situation. Classical approaches like scientific, administrative, and bureaucratic management focused on productivity and organizational structure. Behavioral approaches emphasized the importance of human behavior and motivation. Contingency theory recognizes that the best management approach depends on internal and external situational factors.
Mr. Brown, the owner of a fashion store, engaged in several management functions to improve his business. He planned by installing a security system, wind resistant windows, and preparing for market trends. He organized by putting sales and purchase records into folders. He staffed by hiring a sales representative and training existing employees. He controlled by having a three-week 20% sale. He led by assigning tasks to customer service attendants to ensure goals were met and customers satisfied.
The document discusses inventory management concepts including economic order quantity (EOQ) models. It defines key inventory costs: ordering/setup costs, holding/carrying costs, shortage costs. The EOQ model balances ordering and carrying costs to determine the optimal order quantity. An example calculates the EOQ, annual carrying cost, ordering cost, and total annual cost for a company with constant demand and known costs and demand values. The optimal order quantity minimizes total annual inventory costs.
Managerial roles can be categorized into three types: interpersonal roles, informational roles, and decisional roles. Interpersonal roles include serving as the symbolic leader (figurehead) and motivating subordinates. Informational roles involve monitoring the external environment, disseminating information internally, and communicating with external stakeholders. Decisional roles consist of seeking new opportunities (entrepreneur), handling disturbances, allocating resources, and negotiating on behalf of the organization.
The Philippines' Competitive Advantage on Business Environment in Comparison ...Arangkada Philippines
This document discusses the competitive advantages of the Philippines for business compared to other Asian countries from the perspective of the Japan External Trade Organization (JETRO). It outlines that the Philippines has competitive advantages in terms of cost competitiveness, quality of human resources, and government incentives. It also notes that strengthening industrial linkages, manufacturing sectors, and infrastructure would further improve the investment environment. The document provides data on sources of profits for Japanese companies by region, salaries for various roles in manufacturing and non-manufacturing sectors, and reasons for Japanese companies establishing operations in different Asian cities.
This document discusses decision theory and decision making under uncertainty. It outlines the steps in decision theory as determining alternative actions, possible outcomes or states of nature, and constructing a payoff table to choose the alternative with the largest payoff. It describes four types of decision making environments - certainty, uncertainty, risk, and conflict - and gives criteria for decision making under uncertainty, including minimax, maximin, maximax, minimin, Laplace, and Hurwicz criteria. It provides an example applying these criteria to a farmer choosing which crop to plant.
Management involves directing and coordinating the work of others to efficiently achieve organizational goals. It includes five core functions: planning, organizing, staffing, leading, and controlling. Planning involves setting goals and strategies. Organizing determines how work will be done and who will do it. Staffing involves recruiting and maintaining staff. Leading motivates people. Controlling monitors progress to ensure plans are followed. Management aims to maximize efficiency in resource use and effectiveness in goal achievement.
Classical & Neo classical theory of managementOliviaJustin
This document provides an overview of several management theories: classical theory, scientific management, administrative management, bureaucratic management, neo-classical theory, human relations theory, and behavioral science approach. It defines each theory, discusses their key contributors like Taylor, Fayol, and Mayo, and summarizes their main principles and concepts. The document traces the evolution of management thought from a focus on efficiency under classical theory to consideration of human factors in neo-classical, human relations, and behavioral theories.
This document outlines the principles, definitions, functions, and levels of management. It discusses key concepts such as the four functions of management (planning, organizing, leading, controlling), managerial skills (conceptual, human, technical), and roles of managers (interpersonal, informational, decisional). It provides an overview of management topics that will be covered in 15 chapters from the prescribed textbook.
This document provides an overview of key concepts in decision making covered in Chapter 16 of the textbook "Statistics for Managers Using Microsoft Excel". It begins by listing the chapter goals, which include describing decision making processes, constructing decision tables, applying expected value criteria, and accounting for risk attitudes. It then outlines the typical steps in decision making, such as listing alternatives and possible outcomes. Key decision making criteria are defined, like expected monetary value, expected opportunity loss, and value of perfect information. Examples are provided to demonstrate how to apply these concepts to make optimal decisions under uncertainty.
Routine decisions are decisions that people make hundreds of times each day without much thought based on established routines. These routine decisions are usually sufficient but sometimes fail, providing an opportunity to improve decision-making. Decisions in organizations can be strategic, tactical, or operational. Strategic decisions are made by top management and involve long-term goals and resource allocation, while individual decisions are influenced most by perception. Group decisions assess the organization's direction using tools like SWOT and aim for consensus without clear winners or losers.
There are two types of line organization: pure line organization and departmental line organization. Pure line organization has all persons at the same level performing the same type of work solely for control and direction purposes. Departmental line organization divides the enterprise into different departments for convenient control, with unity of control and a line of authority that flows from the top to the bottom.
The document discusses several theories related to management and organizational behavior, including contingency theory, technology determinism, and stakeholder theory. Contingency theory claims there is no single best way to organize and that the optimal approach depends on internal and external factors. Technology determinism argues technologies directly impact organizational attributes like span of control. Stakeholder theory identifies six groups that influence organizations: technology, suppliers, customers, government, unions, and consumer groups.
Herbert Simon developed a three step model of decision making: 1) The intelligence phase where the problem is identified and information is collected; 2) The design phase where possible solutions are developed; 3) The choice phase where one solution is selected. Simon's model provides a structured approach to decision making by breaking it down into distinct phases: defining the problem, generating alternatives, and making a selection.
The document discusses the various factors of a business environment and their influence on business operations. It defines business environment as the total external and internal factors that influence business decisions and functioning. The key factors discussed include economic, social, political, legal, demographic, technological and natural environment factors. It emphasizes the importance of understanding the business environment for successful business operations.
This chapter introduces operations management. It defines operations management as managing the systems or processes that create goods and services. The chapter outlines the key functional areas of organizations and how operations management affects a company's ability to compete. It compares manufacturing and service operations, describing their differences in areas like customer contact, input and output variability, and inventory levels. The chapter also discusses the role of the operations manager in making both system design and operation decisions. Finally, it provides an overview of trends impacting operations management like globalization and supply chain management.
Transaction processing systems (TPS) support routine operations and management while management information systems (MIS) provide decision-making support using data from TPS. MIS can address structured problems through optimization, satisficing, or heuristics models. They provide managers with regular reports from various functional areas like finance, manufacturing, marketing, logistics, and human resources to control and plan operations. Decision support systems (DSS) are used for unstructured problems through flexible presentation of internal and external data with simulation and statistical analysis to support multiple decision approaches.
The document discusses the evolution of management theories from the Industrial Revolution to modern times. It covers early theories like Scientific Management and the Hawthorne Effect. It also covers modern theories such as Maslow's hierarchy of needs, McGregor's Theory X and Y, Ouchi's Theory Z, and Total Quality Management including Deming's 14 points. International management styles are also discussed, comparing practices in Thailand and Japan.
The document discusses several key concepts in management:
1. It defines management as tactfully managing men, technology, teams, competencies, objectives, and resources to achieve results.
2. Several management theorists are discussed, including their definitions of management and contributions to the field.
3. The five universal management functions are identified as planning, organizing, coordinating, motivating, and controlling.
Chapter 5 information and knowledge(b&w)Ajay Ardeshana
This document discusses concepts related to information and knowledge in the context of a Management Information System (MIS). It defines information and how it differs from data, providing characteristics of information. It also discusses how information is communicated from a source to a destination, with the potential for noise and distortion. Finally, it outlines some methods for presenting, summarizing and routing information to various receivers.
The document discusses a chapter on information and management from a textbook. It begins with contact information for the author, Ajay A. Ardeshana, and an overview of topics to be covered in the chapter, including the difference between data and information, types of information, levels of management, and attributes of quality information. The chapter then defines data and information, provides examples of how data is processed into information, and categorizes information into strategic, tactical, and operational types based on its purpose, user, structure, and complexity. Reasons for needing computer-based information systems and management structure are also outlined.
Get the business understanding right! Analytics Teams know that one of their biggest challenges is effective communication and collaboration with their business partners. Projects are plagued with too many iterations to get to a solution, too many detours responding to unfocused requests, and too often the final model results in a positive analytic result that can’t demonstrate business value.
What can you do? Analytics and decision modeling expert James Taylor of Decision Management Solutions outlines six questions to ask your business partner before you start modeling and shows you why decision modeling is the best approach to building this shared understanding.
This document discusses concepts related to business decision making. It defines business decisions and their characteristics. Rational decision making and Herbert Simon's model of intelligence, design and choice are explained. The document also covers types of decisions, decision alternatives, decision analysis techniques, behavioral concepts, and how organizations can deal with uncertainty and learn from past decisions. MIS can support decision making by providing flexible decision support systems and incorporating organizational and cultural factors.
This document discusses decision making in business management. It outlines the decision making process which includes defining the problem, collecting and analyzing data, analyzing the problem, developing alternative solutions, evaluating and selecting a solution, and implementing and assessing the decision. It also discusses types of decisions like programmed vs non-programmed and strategic vs tactical. Potential impediments in decision making are identified as bad ideas, acting too fast, lack of information, and fear of failure. The document provides examples of business decisions at different stages.
This document discusses the challenges that small and medium enterprises (SMEs) face related to automation. It identifies key challenges as taking the right decision about automation, choosing the appropriate technology and software solutions, and managing organizational change. Specifically, it notes that SMEs must decide whether to automate now or later, consider a big bang or phased approach, and ensure automation aligns with business objectives. Choosing solutions requires evaluating make vs buy options and selecting applications that fit the business. Managing change is the biggest challenge and requires treating automation as an HR issue and having leadership support change management.
This document discusses decision making under uncertainty. It provides definitions of decision making and outlines an 8 step decision making process. It also defines risk, certainty and uncertainty and how decisions are made under each condition. The document then provides a case study of the mobile network operator Zong, outlining its vision, mission, organizational structure and conducting a SWOT analysis. It concludes that decision making is important for organizations and managers often face risk and uncertainty. It recommends strategies to improve decision making under uncertainty.
This document discusses decision making under uncertainty. It provides definitions of decision making and outlines an 8 step decision making process. It also defines risk, certainty and uncertainty and how decisions are made under each condition. The document then provides a case study of the mobile network operator Zong, outlining its vision, mission, organizational structure and performing a SWOT analysis. It concludes that decision making is important for organizations and managers often face risk and uncertainty. It recommends strategies to improve decision making under uncertainty.
This document provides an overview and summary of a webinar on taking a team approach to problem solving. The webinar covered a six-step problem solving methodology: 1) identify the problem, 2) analyze the problem, 3) generate potential solutions, 4) select and plan the solution, 5) implement the solution, and 6) evaluate the solution. Various tools that can be used at each step of the methodology are described, such as check sheets, flow charts, Pareto charts, and root cause analysis for problem analysis, and criteria rating, consensus building, and Gantt charts for selecting and planning solutions. The benefits of using a structured team approach and problem solving methodology are highlighted.
Get deployed! Many Analytics Teams have experience with building what seems like a great model–valid, predictive, powerful–only to see disappointing or even no business impact. Some models are not deployed, or take so long to deploy their accuracy is lost. Even deployed models are often not used effectively.
What can you do? Learn the 5 questions to ask before deploying your model.
Organizational Planning And Goal Setting MGT 201 Helpful Slides For Management Students Of Different Universities In Karachi And All Over Pakistan And World
1. The document discusses the principles and types of decision making. It defines decision making as choosing between two or more alternatives based on logic and judgment.
2. There are different types of decisions including programmed vs non-programmed, major vs minor, routine vs strategic, and individual vs group decisions. Group decisions take longer but provide more information while individual decisions are faster.
3. The document outlines the steps in decision making including recognizing problems, developing alternatives, evaluating consequences, and implementing the decision. Key factors that influence decision making are also discussed.
Management Theory & Practice(Robbins, S. Coulter M.)cp2000
This document discusses decision making and the decision making process. It describes decision making as identifying and selecting a course of action to deal with a specific problem. The rational model of decision making is presented as an 8 step process that includes identifying the problem, criteria, alternatives, analysis, selection, implementation and evaluation. Managers at different levels must make both routine and non-routine decisions that can be influenced by organizational politics and culture. Decision making involves both rational and bounded rational approaches and managers may also rely on intuition based on their experience.
This document discusses decision making in business. It begins by stating that decisions are made consciously or subconsciously in daily life and must be made scientifically in business since they affect operations. It then defines decision making as selecting between alternative courses of action to solve a problem. The document outlines the key features and steps of the decision making process, which includes identifying the problem, diagnosing causes, setting objectives, gathering information, generating alternatives, evaluating options, selecting a choice, implementing it, and monitoring the results. It also describes different types of decisions as either programmed, routine decisions or non-programmed unique decisions.
ch 9 pptx about the dicision making......Pargianshu
deemed most favorable given the circumstances.
The process of decision-making is governed by a myriad of cognitive biases, heuristics, and situational influences that can either enhance or impede our ability to make sound choices. From the confirmation bias that skews our perceptions towards information that aligns with preexisting beliefs to the availability heuristic that overestimates the importance of readily available information, these cognitive shortcuts often lead to suboptimal decisions. Additionally, factors such as time constraints, stress, and social pressures can further complicate the decision-making process, increasing the likelihood of errors or irrational choices.
Despite these inherent challenges, humans possess remarkable adaptive capabilities that enable us to navigate the complexities of decision-making with varying degrees of success. Strategies such as rational analysis, intuition, and collaborative decision-making can help mitigate cognitive biases and enhance the quality of decisions. Moreover, the advent of technology has revolutionized decision-making processes, providing access to vast amounts of data, sophisticated algorithms, and decision support systems that augment human judgment and decision-making prowess.
In organizational settings, effective decision-making is paramount to success, driving strategic planning, resource allocation, and performance optimization. Leaders must cultivate a culture that fosters open communication, critical thinking, and accountability, empowering employees at all levels to contribute to the decision-making process. By embracing diversity of thought and fostering a climate of psychological safety, organizations can harness the collective wisdom of their teams to tackle complex challenges and capitalize on emerging opportunities.
Moreover, the field of decision science continues to evolve, yielding valuable insights into the underlying mechanisms of decision-making and informing strategies for improvement. From behavioral economics to neuroscientific research, interdisciplinary approaches offer new perspectives on human cognition and decision-making behavior, informing interventions aimed at promoting rationality, resilience, and ethical decision-making.
In conclusion, decision-making is a fundamental aspect of the human experience, shaping our individual trajectories and collective destinies. While fraught with challenges and complexities, effective decision-making is essential for navigating the uncertainties of life, driving progress, and achieving desired outcomes. By understanding the cognitive processes that underlie decision-making, leveraging adaptive strategies, and fostering a culture of collaboration and continuous learning, we can enhance our ability to make informed, ethical, and impactful decisions in an ever-changing world.deemed most favorable given the circumstances.
The process of decision-making is governed by a myriad of cognitive biases, heuristics, and situat
Decision Science involves using quantitative techniques and modeling to help with decision making in organizations. It includes topics like assignment models, transportation models, linear programming, and risk analysis. Decision Science provides frameworks for making decisions under uncertainty and aims to optimize costs and other factors. It is an interdisciplinary field that combines mathematics, technology, and behavioral science to help decision makers solve complex problems and achieve organizational goals.
Decision Making: Decision Making Process, Stages in Decision Making, Individu...Ashish Hande
Decision Making: Decision Making Process, Stages in
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The document describes various aspects of the managerial decision-making process, including the rational-economic and behavioral models of decision making. It discusses the seven steps in the decision-making process, concepts related to bounded rationality and escalation of commitment. Group decision making techniques like brainstorming and nominal group technique are described, as well as tools for strategic decision making like the growth-share matrix.
This document provides an overview of decision making. It defines decision making as selecting a preferred course of action from two or more alternatives. The document outlines the characteristics of operations decisions and the framework for decision making, which involves defining the problem, establishing criteria, generating alternatives, evaluating alternatives, and implementing and monitoring the decision. It also discusses using decision models, including computer-aided models and economic models like break-even analysis, in decision making.
This document outlines the process of decision making in a business organization. It discusses that decision making involves selecting between alternative courses of action to solve problems. The 9 step decision making process is then described, including identifying the problem, diagnosing it, establishing objectives, collecting information, generating alternatives, evaluating alternatives, selecting an alternative, implementing it, and monitoring the implementation. Programmed decisions that are routine and nonprogrammed decisions that are unique are also defined.
How to Add Chatter in the odoo 17 ERP ModuleCeline George
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In Odoo, making a field required can be done through both Python code and XML views. When you set the required attribute to True in Python code, it makes the field required across all views where it's used. Conversely, when you set the required attribute in XML views, it makes the field required only in the context of that particular view.
This presentation was provided by Steph Pollock of The American Psychological Association’s Journals Program, and Damita Snow, of The American Society of Civil Engineers (ASCE), for the initial session of NISO's 2024 Training Series "DEIA in the Scholarly Landscape." Session One: 'Setting Expectations: a DEIA Primer,' was held June 6, 2024.
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Walmart Business+ and Spark Good for Nonprofits.pdfTechSoup
"Learn about all the ways Walmart supports nonprofit organizations.
You will hear from Liz Willett, the Head of Nonprofits, and hear about what Walmart is doing to help nonprofits, including Walmart Business and Spark Good. Walmart Business+ is a new offer for nonprofits that offers discounts and also streamlines nonprofits order and expense tracking, saving time and money.
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Walmart Business + (https://business.walmart.com/plus) is a new shopping experience for nonprofits, schools, and local business customers that connects an exclusive online shopping experience to stores. Benefits include free delivery and shipping, a 'Spend Analytics” feature, special discounts, deals and tax-exempt shopping.
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Answers about how you can do more with Walmart!"
it describes the bony anatomy including the femoral head , acetabulum, labrum . also discusses the capsule , ligaments . muscle that act on the hip joint and the range of motion are outlined. factors affecting hip joint stability and weight transmission through the joint are summarized.
Exploiting Artificial Intelligence for Empowering Researchers and Faculty, In...Dr. Vinod Kumar Kanvaria
Exploiting Artificial Intelligence for Empowering Researchers and Faculty,
International FDP on Fundamentals of Research in Social Sciences
at Integral University, Lucknow, 06.06.2024
By Dr. Vinod Kumar Kanvaria
Main Java[All of the Base Concepts}.docxadhitya5119
This is part 1 of my Java Learning Journey. This Contains Custom methods, classes, constructors, packages, multithreading , try- catch block, finally block and more.
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providing crucial environmental data for scientific, resource management, policy purposes, and
diverse human activities.
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of any area. Consequently, a wide range of professionals, including earth system scientists, land
and water managers, and urban planners, are interested in obtaining data on land use and cover
changes, conversion trends, and other related patterns. The spatial dimensions of land use and
cover support policymakers and scientists in making well-informed decisions, as alterations in
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help of Advanced technologies like Remote Sensing and Geographic Information Systems is
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Remote Sensing and Geographic Information Systems
9
Changes in vegetation cover refer to variations in the distribution, composition, and overall
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occur natural.
ISO/IEC 27001, ISO/IEC 42001, and GDPR: Best Practices for Implementation and...PECB
Denis is a dynamic and results-driven Chief Information Officer (CIO) with a distinguished career spanning information systems analysis and technical project management. With a proven track record of spearheading the design and delivery of cutting-edge Information Management solutions, he has consistently elevated business operations, streamlined reporting functions, and maximized process efficiency.
Certified as an ISO/IEC 27001: Information Security Management Systems (ISMS) Lead Implementer, Data Protection Officer, and Cyber Risks Analyst, Denis brings a heightened focus on data security, privacy, and cyber resilience to every endeavor.
His expertise extends across a diverse spectrum of reporting, database, and web development applications, underpinned by an exceptional grasp of data storage and virtualization technologies. His proficiency in application testing, database administration, and data cleansing ensures seamless execution of complex projects.
What sets Denis apart is his comprehensive understanding of Business and Systems Analysis technologies, honed through involvement in all phases of the Software Development Lifecycle (SDLC). From meticulous requirements gathering to precise analysis, innovative design, rigorous development, thorough testing, and successful implementation, he has consistently delivered exceptional results.
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Date: May 29, 2024
Tags: Information Security, ISO/IEC 27001, ISO/IEC 42001, Artificial Intelligence, GDPR
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ISO/IEC 27001, ISO/IEC 42001, and GDPR: Best Practices for Implementation and...
Chapter 4 decision making
1. B. H. Gardi College of Engineering & Technology, RAJKOT
Department of Master of Computer Application
Prepared By : Ajay A. Ardeshana
Email : ajay.24021985@gmail.com Mobile : 9558820298 1
Prepared By :-
Mr. Ajay A. Ardeshana
MCA Lecturer
At GARDI VIDYAPITH
RAJKOT.
Email :- ajay.24021985@gmail.com
Mobile :- + 91 – 95588 20298
DECISIONDECISIONDECISIONDECISION
MAKINGMAKINGMAKINGMAKING
Chapter - 4
2. B. H. Gardi College of Engineering & Technology, RAJKOT
Department of Master of Computer Application
Prepared By : Ajay A. Ardeshana
Email : ajay.24021985@gmail.com Mobile : 9558820298 2
Decision-Making Concepts
Prepared By :- Ajay A. Ardeshana Email :- ajay.24021985@gmail.com Mobile :- 9558820298
Decision is a choice out of several options, made by decision
maker to achieve some objectives in a given situation.
Major characteristics of Business Decision-Making :-
Sequential (Not Isolated) :-
The business decision-making is sequential in nature.
It is not an isolated event.
Each of them are related to some other decision or situation.
Complex :-
It is a complex process in the higher hierarchy of management.
The complexity is the result of many factors.
Prepared By :- Ajay A. Ardeshana Email :- ajay.24021985@gmail.com Mobile :- 9558820298
Influenced by Personal Values :-
Personal values of a decision maker play a major role
in decision-making.
Economics rationality may be rejected on the basis of
Personal Values.
Made in Institutional Setting and Business
Environment :-
It will require more creativity, imagination
and deep understanding of human behavior.
All decisions solve the ‘problem’ but over a
period of time they rise number of other
‘problems’.
3. B. H. Gardi College of Engineering & Technology, RAJKOT
Department of Master of Computer Application
Prepared By : Ajay A. Ardeshana
Email : ajay.24021985@gmail.com Mobile : 9558820298 3
Rational Decision-Making
Prepared By :- Ajay A. Ardeshana Email :- ajay.24021985@gmail.com Mobile :- 9558820298
Definition :-
“A rational decision is the one which, effectively and efficiently,
ensures the achievement of the goal for which the decision is
made.”
Example :-
To decide a higher price then the cost of production.
There is no right or wrong decision but a rational or irrational
decisions.
Prepared By :- Ajay A. Ardeshana Email :- ajay.24021985@gmail.com Mobile :- 9558820298
The rationality of the decision made is not the same
in every situation. It will vary with the organization, the
situation and the individual’s view of the business
situation.
The reason for this difference in rationality is the
different objectives of the decision maker.
Types of rationality according to the Simon Herbert
1. Objectively Rational :-
• If it maximize the value of the objective.
2. Subjectively Rational :-
• If it maximize the attainment of value within limitation of
the knowledge and awareness of the subject.
4. B. H. Gardi College of Engineering & Technology, RAJKOT
Department of Master of Computer Application
Prepared By : Ajay A. Ardeshana
Email : ajay.24021985@gmail.com Mobile : 9558820298 4
Prepared By :- Ajay A. Ardeshana Email :- ajay.24021985@gmail.com Mobile :- 9558820298
3. Consciously Rational :-
• It extent the process of the decision-making is
deliberate (Intentional) and conscious (awareness)
one.
4. Organizationally Rational :-
• Degree of orientation (Person’s attitude) towards
the organization.
5. Personally Rational :-
• It achieves an individual’s personal goals.
The Problems in Making Rational Decision
Prepared By :- Ajay A. Ardeshana Email :- ajay.24021985@gmail.com Mobile :- 9558820298
1. Ascertaining The Problem :-
The most common mistake in management decision is it is for “finding
the right answer rather then finding the right question”.
The management may define the problem “Sales are declining”.
Actually, the problem is there some where else. Fore example problem
may be the poor quality of product or you may be thinking of
improving the quality of advertising.
2. Insufficient Knowledge :-
For perfect rationality, the total information leading to complete
knowledge is necessary.
The main function of a manager is to determine the dividing line
between insufficient knowledge and enough information.
5. B. H. Gardi College of Engineering & Technology, RAJKOT
Department of Master of Computer Application
Prepared By : Ajay A. Ardeshana
Email : ajay.24021985@gmail.com Mobile : 9558820298 5
Prepared By :- Ajay A. Ardeshana Email :- ajay.24021985@gmail.com Mobile :- 9558820298
3. Not enough time to be Rational :-
The decision is under pressure to make the decision.
If the time is limited, he may make a hasty decision which may not satisfy
the test of rationality of decision.
4. The environment may not cooperate :-
Sometimes the timing of the decision is such that one force to make the
decision but the environment is not conductive for it.
It may fail the test of rationality if environmental factor is consider.
For example, Deciding the price for Oil and Petroliam Products.
5. Other Limitations :-
Other limitations like :
Need for compromise among the different position.
Misjudging the motivation and value of people.
Poor communication.
Inability to handle the available knowledge and human behavior.
Decision-Making Process
Prepared By :- Ajay A. Ardeshana Email :- ajay.24021985@gmail.com Mobile :- 9558820298
Herbert Simon describes the model
of Decision-Making Process in three
phases :
(a)Intelligence :-
Raw data collected, proceed and examined.
(b)Design :-
Inventing, analyzing and developing the
different decision alternatives
(c)Choice :-
Select one alternative as a decision
INTELLIGENCE
DESIGN
CHOICE
6. B. H. Gardi College of Engineering & Technology, RAJKOT
Department of Master of Computer Application
Prepared By : Ajay A. Ardeshana
Email : ajay.24021985@gmail.com Mobile : 9558820298 6
Prepared By :- Ajay A. Ardeshana Email :- ajay.24021985@gmail.com Mobile :- 9558820298
In the intelligence phase, the MIS collects the data. The data is
scanned, examined, checked and edited. Further the data is
sorted and managed with other data and computations are
made summarized and presented.
In the design phase, the manager develops a model of the
problem situation on which he can generate and test the
different decisions to facilitate its implementation. If the model
developed is useful, he then further moves into phase of
selection called as choice.
In the phase of choice, the manager evolves the selection
criterion such as maximum profit, least cost, minimum waste,
least time taken and highest utility. The criterion is applied to the
various decision alternatives and the one which satisfied the
most is selected.
Decision-Making Systems : Types
Prepared By :- Ajay A. Ardeshana Email :- ajay.24021985@gmail.com Mobile :- 9558820298
The decision-making can be classified in a number of ways.
There are two types of the systems based on the manager’s
knowledge about the environment.
1. Close and
2. Open
1. Close Decision-Making :-
If the manager operates in an known environment then it is a
Closed Decision-Making System
2. Open Decision-Making :-
If the manager operates in an environment not knowing to him
then it is a Open Decision-Making System
7. B. H. Gardi College of Engineering & Technology, RAJKOT
Department of Master of Computer Application
Prepared By : Ajay A. Ardeshana
Email : ajay.24021985@gmail.com Mobile : 9558820298 7
Prepared By :- Ajay A. Ardeshana Email :- ajay.24021985@gmail.com Mobile :- 9558820298
Conditions for the Close Decision-Making System :-
The manager has a known set of decision alternatives and knows
their outcomes fully in terms of value, if implemented.
The manager has a model, a methods or a rule whereby a decision
alternatives can be generated, tested and ranked for selection.
The manager can choose one of them, based on some goal and
objective criterion.
Conditions for the Open Decision-Making System :-
The manager does not known all the decision alternatives.
The outcome of the decision is not known fully.
No method, rule or model is available to study and finalized the
decision among the set of decision alternatives.
It is difficult to decide an objective and a goal and, the manager
resorts to that decision, where his aspiration or desire are met best.
Types of Decision
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The types of decision are based on the degree of knowledge
about the outcomes or the events yet to take place.
If the manager has the full or precise knowledge of events and
the outcomes which is to occur, then the decision-making is not
a problem. Otherwise ……
1. If the manager has full knowledge the it is s situation of
certainty.
2. If he has partial knowledge or a probabilistic knowledge, then
it is decision-making under risk.
3. If manager does not have any knowledge whatsoever, then it
is decision-making under uncertainty.
8. B. H. Gardi College of Engineering & Technology, RAJKOT
Department of Master of Computer Application
Prepared By : Ajay A. Ardeshana
Email : ajay.24021985@gmail.com Mobile : 9558820298 8
Prepared By :- Ajay A. Ardeshana Email :- ajay.24021985@gmail.com Mobile :- 9558820298
A good MIS tries to convert the decision-making situation under
uncertainty to under risk and further to certainty.
Decision-Making in the Operation Management is a situation of
certainty. This is mainly because the manager in this field has:
Full knowledge of events to take place.
Full knowledge of an environment. And
Has a predetermine decision alternatives.
Decision-Making in the Middle Level Management is of the risk type.
This is mainly because the manager in this field has:
Difficulties in forecasting the with hundred percent accuracy and
The limited scope of generating the decision alternatives.
Decision-Making at Top Level Management is a situation of total
uncertainty. This is mainly because the manager has:
Insufficient knowledge of external environment. And
Difficulties to forecasting the business growth on a long term basis.
Nature of Decision
Prepared By :- Ajay A. Ardeshana Email :- ajay.24021985@gmail.com Mobile :- 9558820298
Decision-Making is a complex situation. To resolve the
complexity, the decisions are classified as:
Programmed Decision.
Non-programmed Decision.
If the decision can be based a rule, methods or even
guidelines, it is called the Programmed Decision.
The programmed decision can be delegate to lower level
management.
The decision which can not be made by using a rule or a model
is the Non-programmed Decision.
Non-Programmed decision can not be delegate to lower
level management.
9. B. H. Gardi College of Engineering & Technology, RAJKOT
Department of Master of Computer Application
Prepared By : Ajay A. Ardeshana
Email : ajay.24021985@gmail.com Mobile : 9558820298 9
The Low of requisite Variety of Situation
Prepared By :- Ajay A. Ardeshana Email :- ajay.24021985@gmail.com Mobile :- 9558820298
The programmed decision making is the necessary
for the manager, to enumerate all the stages to the
decision-making situation and provide necessary
support through rules and formula for each one of
them.
The failure to provide the decision-making rule, in
each of them will lead to a situation where the system
will not be able to make the decision.
It is therefore necessary to cover a requisite Variety
of situations with the necessary decision response.
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The requisite variety of situations means that for efficient
programmed decision-making, it is necessary for the manager to
provide:
1. All the decision alternatives and the choices.
2. The decision rules to handle the situation.
3. The system or the method to generate a decision choice.
It has found that in a closed-decision-making situation, the
programmed decision-making system works efficiently, while in
the open decision-making situation it is not efficient.
With the advent of KBES and KBAIS, it is now possible for a
computer to develop the alternatives, test them and handle
them on the criteria of selection leading to the decision.
The MIS is expected to provide the necessary information and
knowledge support to the computer based system.
10. B. H. Gardi College of Engineering & Technology, RAJKOT
Department of Master of Computer Application
Prepared By : Ajay A. Ardeshana
Email : ajay.24021985@gmail.com Mobile : 9558820298 10
Methods for deciding Decision Alternatives
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Three methods for selection of decision alternatives are:
1. Optimization Techniques.
2. Payoff Analysis.
3. Decision Tree Analysis.
All the operational research models use optimization techniques,
to decide on the decision alternatives.
When the decision making situation can be expressed, in terms of
decision V/s problem event, and its pay-off value, then it is
possible to construct matrix of the decision V/s pay-off values.
the method of decision making can be adopted, if the decision
making situation can be describe as a chain of decisions.
Prepared By :- Ajay A. Ardeshana Email :- ajay.24021985@gmail.com Mobile :- 9558820298
1. Optimization Techniques :-
Linear Programming, Integer Programming, Dynamic Programming,
Queuing Models, Inventory Models, Capital Budgeting Models are the
examples of this techniques.
These methods are used in case when the decision-making situation is
closed, deterministic and requires to optimize the use of resources under
condition of constraints.
These methods are termed Operational Research Techniques.
All the OR methods are attempt to balance the two aspects of business
under condition of constraints.
In Linear Programming Model, the Use of resource V/s Demand is
balance to maximize the profit.
In Inventory Model, the Cost of Holding Inventory V/s the Cost of
purchasing the inventory is balanced under constraint of capital and
meeting the demand requirements.
11. B. H. Gardi College of Engineering & Technology, RAJKOT
Department of Master of Computer Application
Prepared By : Ajay A. Ardeshana
Email : ajay.24021985@gmail.com Mobile : 9558820298 11
Prepared By :- Ajay A. Ardeshana Email :- ajay.24021985@gmail.com Mobile :- 9558820298
2. The Payoff Analysis :-
When all the alternatives and their outcomes are not known with
certainty, the decision is made with the help of Payoff Analysis.
The Payoff Matrix is constructed where
The rows shows the alternatives and
The columns shows the conditions or the states of nature with the probability
of occurrence.
The intersection of Columns and Rows shows the value of Outcome
resulting out the alternative and the state of nature.
Your Decision
Alternative
Competitor’s
Decision:
Probability
No Change Increase Decrease
Expected
Gain
0.50 0.20 0.30
No Change in
the Price
4 5 8 5.40
Increase Price
6 4 3 4.70
Decrease Price
10 12 4 8.60
Prepared By :- Ajay A. Ardeshana Email :- ajay.24021985@gmail.com Mobile :- 9558820298
3. Decision Tree Analysis :-
When the decision must make a sequence of decisions, the decision
tree analysis is useful in selecting the set of decisions.
12. B. H. Gardi College of Engineering & Technology, RAJKOT
Department of Master of Computer Application
Prepared By : Ajay A. Ardeshana
Email : ajay.24021985@gmail.com Mobile : 9558820298 12
Decision Analysis by Analytical Modeling
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A decision is made but such a decision needs to be
analyzed for conditions and assumptions considered in the
decision model.
The Model is analyzed in four ways :
1. What If Analysis.
2. Sensitivity Analysis.
3. Goal Seeking Analysis.
4. Goal Achieving Analysis.
Prepared By :- Ajay A. Ardeshana Email :- ajay.24021985@gmail.com Mobile :- 9558820298
1. What If Analysis :-
Decisions are made using a model of the problems for developing various
solutions alternatives and testing them for the best choice.
The model is built with some variables and relationship among the variables.
In reality, the considered value for variables or relationship in the model may
not hold good and therefore solution need to be tested for the outcome,
“if the value of variable or relationship change”.
This model of analysis is known as “What If Analysis”.
Example :-
Decision-Making Problem in determining Inventory Control Parameters.
Like: Safety Stock, Maximum Stick, Minimum Stock. Reorder Level.
The variable for decision making is Time for Planning Period.
Inventory manager want to know how the cost of holding inventory will be
effected if time is reduced by one week or increased by one week.
What If Analysis creates a confidence in decision-making model by putting a
picture of outcomes under different conditions.
13. B. H. Gardi College of Engineering & Technology, RAJKOT
Department of Master of Computer Application
Prepared By : Ajay A. Ardeshana
Email : ajay.24021985@gmail.com Mobile : 9558820298 13
Prepared By :- Ajay A. Ardeshana Email :- ajay.24021985@gmail.com Mobile :- 9558820298
2. Sensitivity Analysis :-
In what if analysis we test the effect on solution by changing the
value of number of variables simultaneously or changing the
relations.
But in Sensitivity Analysis, a special case of What If Analysis, only
one variable is changed and rest are kept unchanged.
Example :-
In our problem of inventory, Sensitivity Analysis can be used to access the
cost of holding the inventory, if the cost of item increase 20% in sensitivity
analysis, we are testing how sensitive is the cost of holding inventory to the
change in the cost of item.
Sensitivity Analysis helps to understand the significance of variable in
decision-making and improve the quality of decision-making.
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3. Goal Seeking Analysis :-
In goal seeking analysis, the goal is fixed and you go down to analysis the
variables and values, which would help to seek the goal. We work backward
from the goal.
Example :-
In our inventory problem, we would fix the goal of achieving the cost of holding
inventory of an item at the level of Rs. 10,00,000/-
Goal seeking analysis will help you to arrive at the values of parameters to attain the
inventory level of Rs. 10,00,000/-.
4. Goal Achieving Analysis :-
In goal achieving analysis, we do not seek the goal but we try to achieve the
goal of an optimum value arrived at after satisfying all the constraints
operating in the problem.
In optimization analysis, we come to know which are critical constraints and
which are limiting the value of goal. The decision maker use this analysis to work
on constraints and resources and find way to improve solution to achieve highest
goal.
14. B. H. Gardi College of Engineering & Technology, RAJKOT
Department of Master of Computer Application
Prepared By : Ajay A. Ardeshana
Email : ajay.24021985@gmail.com Mobile : 9558820298 14
Behavioral Concepts in Decision-Making
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The manager, as a human being, behaves in a particular way in a
given situation.
The response of one manager may not be the same as that of the
other manager as they differ n the behavior platform.
Even though tools, methods and procedures are evolved, the
decision is many a times influenced by personal factors.
The manager differ in their approach towards decision making in
the organization and therefore they can be classified like :
The achievement oriented.
Nature of risk avoidance.
Behavior Influenced by the position.
Prepared By :- Ajay A. Ardeshana Email :- ajay.24021985@gmail.com Mobile :- 9558820298
The achievement oriented manager will always work for
the best and therefore, will be enterprising in every aspects
of decision-making. He will endeavor to develop all the
possible alternatives.
Some of the manager shows the nature of risk avoidance.
Their behavior shows the distinct pattern indicating a path of
Low Risk or No Risk in decision-making.
The behavior of manager is also influenced by the position
he hold in the organization. The behavior is influenced by the
fear that the personal image may be spoiled due to failure.
The rationality of the business decision will depend
individuals, their position in organization, and their inter-
relationship with the other manager.
15. B. H. Gardi College of Engineering & Technology, RAJKOT
Department of Master of Computer Application
Prepared By : Ajay A. Ardeshana
Email : ajay.24021985@gmail.com Mobile : 9558820298 15
MIS and Decision-Making
Prepared By :- Ajay A. Ardeshana Email :- ajay.24021985@gmail.com Mobile :- 9558820298
As the Decision-Making is relevant to the design on MIS designer has
to design the system in such a way that the problem is identify in
precise term.
Decision Phases :-
The designer is to ensure that the system provides the methods for
decision-making.
This model should provide for generating decision alternatives, test
them and provide a way for selection one of them.
Decision-Making System :-
The Closed System are deterministic and rule based, therefore the
design need to have limited flexibility.
In an Open System the design should be flexible to cope up with
the changes required from time-to-time.
Prepared By :- Ajay A. Ardeshana Email :- ajay.24021985@gmail.com Mobile :- 9558820298
Nature of Design :-
Programmed Decision Making is the finest tool available to the MIS
Designer where he can transfer the decision-making from a
decision maker to MIS and still retain the responsibility as a
Decision Maker or Manager.
In case of Non-programmed Decision, the MIS should provide a
DSS (Decision Support System) to handle the variability in the
Decision-Making conditions.
Organizational Behavior :-
MIS provides an insight to the designer to handle the
organizational culture and the constraints in the MIS.