MS 204/U1/L2/Ashima
Decision-making
As defined by Baker , efficient
decision-making involves a series of
steps that require the input of
information at different stages of the
process, as well as a process for
feedback.
MS 204/U1/L2/Ashima
Decisions
Made up of a composite of information,
data, facts and belief.
Data by itself does not constitute useful
information unless it is analyzed and
processed.
MS 204/U1/L2/Ashima
Decision ( Restrictions)
Is only as good as the data that informed it
Is only as good as the system which exists
to implement
Is only good if you have the means to
implement it
Is only good if other people understand it
and what it means
MS 204/U1/L2/Ashima
Types of Decisions
MS 204/U1/L2/Ashima
Systems
A SYSTEM is a collection of objects such as
people, resources, concepts, and
procedures intended to perform an
identifiable function or to serve a goal
MS 204/U1/L2/Ashima
The Structure of a
System
Three Distinct Parts of Systems
Inputs
Processes
Outputs
Systems
Are surrounded by an environment
Frequently include a feedback mechanism
A human, the decision maker, is usually considered part of
the system
MS 204/U1/L2/Ashima
System
Environment
Output(s)
Input(s)
Processes
Feedback
MS 204/U1/L2/Ashima
Boundary
Social
Political
Legal
Physical
Economical
Often Other Systems
MS 204/U1/L2/Ashima
MS 204/U1/L2/Ashima
Intelligence
searching for conditions that call for
decisions
Design
inventing, developing, and analyzing
possible courses of action
Choice
selecting a course of action from those
available
Management Science
Scientific approach to automate
managerial decision making
1. Define problem
2. Classify problem
3. Construct mathematical model
4. Find and evaluate potential solutions
5. Choose and recommend a solution
MS 204/U1/L2/Ashima
Thank You!!
Queries??
MS 204/U1/L2/Ashima