Prepaid By

KEYUR

PARTH

MADHU SUDAN

MEANING

A decision is a choice made from available alternative. Decision making is the process by which individual select a course of action among several alternatives, to produce a desired result. Which individual select course of action among several alternative, to produce a desired result.

 Goal oriented

Alternatives
Analytical-intellectual Dynamic process

Pervasive function
Continuous activities Commitment of time, effort and money Human and social process

Models of Individual Decision Making

Rational Model Comprehensive Establish goals, examine all Rationality alternatives & choose the best alternative
Bounded Rationality Establish goals, examine few alternatives & choose the first alternative that promotes the goals

Satisficing model

Models of Individual Decision Making

Successive Examine alternatives to comparison establish a mix of goals and consequences, choose policy that marginally different from those in the past Psychological Cognitive All decision makers choose goals, but they differ in terms type of gathering & evaluating information. Cognitive, Systematic, Intuitive Muddling

Models of Organisational Decision Making

Rational Comprehensive Org. selects goals, examine all Actor Rationality alternatives & consequences & then choose a goal that maximizes the goal or preference function Bureauc- Org. Output Goals are determined by resource constrained SOPs are combined into ratic SOPs programs, program in repertoires; this
determine what policies will be chosen. Policies are chosen that are incrementally different from the past.

Models of Individual Decision Making

Political Political Outcome Org. decisions result from political competition

Garbage can Nonadaptive Most org are non adaptive org. program temporary & disappear over time. Org. decisions result from interaction among streams of problems, potential action, participants & chance.

Implications for system design

IS should be flexible with many options of handling data, evaluating information & accommodating changes in Individual & org. learning & growth. It should be capable of supporting a variety of styles, skills & knowledge, and both individual and organisational process of decision making.

Implications for system design

IS should be powerful in the sense of having multiple analytical & intuitive model for the evaluation of data and there ability to keep many alternative and consequences. It should reflect an appreciation of the limits of org. change in policy and in procedure & awareness of what IS can do and cant do.

Information and the Decision Process

A decision model is a formal method for making a choice, often involving quantitative and qualitative analysis.

Five-Step Decision Process

Step 1. Gather Information Historical Costs Other Information Specific Predictions

Step 2. Feedback

Make Predictions

Step 3.

Choose an Alternative

Step 4. Implement the Decision

Step 5. Evaluate Performance

Thank Thank You You