Decision Making related to

IS

•Group 3
•Manfred Madhumbu R21350H
•Lillian Marufu R212578C
•Wilson Makambwa R202604H
•Amanda Nyarai Kanyongo R202344H
 Overview
Modern IT solutions provide real-time visibility into various
aspects of a business. Decision-makers can monitor operations,
sales, inventory, and financial metrics instantly. This visibility
allows them to identify emerging opportunities and challenges
promptly, enabling quick responses and agile decision-making.
A decision-making model is a system or process that individuals
can follow or imitate to ensure they make the best choice among
various options. A model makes the decision-making process
easier by providing guidelines to help businesses reach a
beneficial conclusion.
The system collects data from inside and outside the
organization, stores it centrally, and makes it accessible over a
secure network. This allows for rapid access to up-to-date
information from any location, enabling quicker, more accurate
decisions.
 Decision-Making Levels
There are different levels in an organization. Each of these levels has different information requirements for decision
support and different constituencies or groups that information systems need to serve. The four different decision-making
constituencies in a firm are the following:
Senior management. Senior management is concerned with general yet timely information on changes in the industry
and society at large that may affect both the long-term and near-term future of the firm, the firm’s strategic goals, short-
term and future performance, specific bottlenecks and trouble affecting operational capabilities, and the overall ability of
the firm to achieve its objectives.Middle management and project teams.
Middle management is concerned with specific, timely information about firm performance, including revenue and cost
reduction targets, and with developing plans and budgets to meet strategic goals established by senior management. This
group needs to make important decisions about allocating resources, developing short-range plans, and monitoring the
performance of departments, task forces, teams, and special project groups. Often the work of middle managers is
accomplished in teams or small groups of managers working on a task.
Operational management and project teams. Operational management monitors the performance of each subunit of the
firm and manages individual employees. Operational managers are in charge of specific projects and allocate resources
within the project budget, establish schedules, and make personnel decisions. Operational work may also be accomplished
through teams.
Individual employees. Employees try to fulfill the objectives of managers above them, following established rules and
procedures for their routine activities. Increasingly, however, employees are granted much broader responsibilities and
decision-making authority based on their own best judgment and information in corporate systems. Employees may be
making decisions about specific vendors, customers, and other employees. Because employees interact directly with the
public, how well they make their decisions can directly impact the firm’s revenue streams.
 •1. Strategic Level
•For making the decisions strategically, strategic information is very essential. This type of the
information is very wholistic and un-structured in the nature. Strategic Information is obtained in huge
amounts from the external environment. During this level, futuristic inputs are used as these help in the
long – term planning.
•The futuristic inputs generally include –
• a. Emerging technologies

Levels of • b. The competition

• c. Consumer preferences

Decision • d. Socio – economic – political changes

Making •2. Tactical Level

•Medium and short term planning is generally done with the help of the Tactical information that can be
obtained from the middle management, budgets, fore – casts, analysis, cash / funds flow projections etc.
•The Tactical information can be obtained from the internal environment and also from the external
environment.

•3. Operational Level

•The people ranging from a shift to a day or a week or a month can be controlled or operated with the help
of the Operational Information and this type of the Information provides a great look about what is
currently happening around with – in the organization. The Tactical information is obtained from the
internal sources and covers the certain product, specific activity and a smaller number of the people.
Levels of
Decision
Making
Decision Making Level Diagram
 Types of Decisions
The characteristics of decisions faced by managers at different levels are quite different. Decisions can be classified as structured, semi
structured, and unstructured. 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.
Structured decisions, by contrast, are repetitive and routine, and decision makers can follow a definite procedure for handling them to
be efficient. Many decisions have elements of both and are considered semistructured decisions, in which only part of the problem has a
clear-cut answer provided by an accepted procedure. In general, structured decisions are made more prevalently at lower organizational
levels, whereas unstructured decision making is more common at higher levels of the firm.
Senior executives tend to be exposed to many unstructured decision situations that are open ended and evaluative and that require
insight based on many sources of information and personal experience. For example, a CEO in today’s music industry might ask,
“Whom should we choose as a distribution partner for our online music catalog—Apple, Microsoft, or Sony?” Answering this question
would require access to news, government reports, and industry views as well as high-level summaries of firm performance. However,
the answer would also require senior managers to use their own best judgment and poll other managers for their opinions.
Middle management and operational management tend to face more structured decision scenarios, but their decisions may include
unstructured components. A typical middlelevel management decision might be “Why is the order fulfillment report showing a decline
over the last six months at a distribution center in Minneapolis?” This middle manager could obtain a report from the firm’s enterprise
system or distribution management system on order activity and operational efficiency at the Minneapolis distribution center. This is the
structured part of the decision. But before arriving at an answer, this middle manager will have to interview employees and gather more
unstructured information from external sources about local economic conditions or sales trends.
Rank-and-file employees tend to make more structured decisions. For example, a sales account representative often has to make
decisions about extending credit to customers by consulting the firm’s customer database that contains credit information. In this case
the decision is highly structured, it is a routine decision made thousands of times each day in most firms, and the answer has been
preprogrammed into a corporate risk management or credit reporting system.
 Types of Decisions
Managerial decisions may be classified into the following categories:
1. Programmed and Non-programmed Decisions
According to Herbert Simon, programmed decisions are related to routine and repetitive problems.
Information about these problems is readily available and can be processed using pre-established
methods. These decisions have a short-term impact and are relatively simple, typically made at lower
management levels. Decision rules and procedures are in place to streamline the decision-making
process and save time. Little thought and judgment are required, as the decision-maker follows
predetermined solutions. For instance, dealing with a consistently late employee can be addressed
through established procedures.
On the other hand, non-programmed decisions tackle unique or unusual problems that demand a high
level of executive judgment and consideration. There are no ready-made solutions for such problems,
as they require creative and thoughtful approaches. Examples of non-programmed decisions include
introducing a new product or determining the location of a plant. These decisions are usually made by
higher-level managers.
2. Routine and Strategic Decisions
There are two types of decisions in an organization: routine (or operating) decisions and strategic (or
policy) decisions. Routine decisions are repetitive in nature and have a short-term impact, mainly
concerning day-to-day operations. They are typically made at lower levels of management, using
established procedures to ensure quick and efficient handling. For example, a supervisor may make
routine decisions regarding employee overtime pay.
On the other hand, strategic decisions involve long-term commitments and significant investments,
influencing the entire organisation’s future. These decisions require careful deliberation and judgment
and are usually made at higher levels of management. Examples of strategic decisions include
launching a new product, selecting the location for a new plant, or implementing major organisational
changes.
 Types of Decisions

3. Organisational and Personal Decisions

Organisational decisions are made by officials in their capacity as resource allocators for the
organisation. These decisions rely on sound judgment and experience and can be delegated to other
individuals within the organisation. Organisational decisions have a direct impact on the
functioning of the organisation and its outcomes.
On the other hand, personal decisions are made by managers as individuals and cannot be
delegated. These decisions pertain to matters that directly affect their personal lives, such as
decisions to marry or enrol children in a boarding school. While personal decisions may have
implications for the individual manager, they may also indirectly affect the organisation. For
instance, the decision of a chief executive to retire early could have a direct effect on the
company’s future.
4. Individual and Group Decisions
Individual decisions are made by an individual based on the information available to them. These
decisions may involve analyzing various variables, but they are often straightforward. However, in
certain situations, significant decisions may be made collectively by a group.
Group decisions are taken by a team of individuals formed for this purpose, such as the decisions
made by a Board of Directors or a committee. These decisions are typically crucial for the
organisation. Group decision-making often leads to more realistic and well-balanced outcomes, as
different perspectives are considered. Encouraging participative decision-making can be a positive
organisational approach, but it may result in delays and can make fixing responsibility for such
decisions more complex.
Stages of decision making
The decision-making process is a systematic approach
to making choices or selecting a course of action
among several alternatives. It involves several steps,
which can vary depending on the context, complexity,
and significance of the decision. Here are the general
steps involved in the decision-making process:

1. Identify the Decision: Recognize that a decision

needs to be made. This could be triggered by a
problem, opportunity, or need for improvement.
2. Gather Relevant Information: Collect relevant
data and information that will aid in understanding
the situation and potential alternatives. This could
involve research, analysis, consultations with
experts, and accessing relevant resources.
Stages of decision making
3. Identify Alternatives: Brainstorm and generate a range of
possible options or solutions to address the decision at
hand.
4. Evaluate Alternatives: Assess the pros and cons of each
alternative against the defined goals and criteria. Consider
factors such as feasibility, risks, costs, benefits, timeframes,
and potential impact.
5. Make the Decision: After careful analysis, choose the most
suitable alternative.
6. Implement the Decision: Once the decision is made, put
the chosen alternative into action. Create a strategy for
execution, assign necessary resources, and inform pertinent
stakeholders of the decision.
7. Monitor and Evaluate: Continuously monitor the
implementation of the decision and its outcomes. Evaluate
its effectiveness against the defined goals and criteria
 Managers role in Decision Making
Managers play a crucial role in decision-making related to information systems, considering both the technical rational and behavioral
perspectives. Let's explore these perspectives in more detail:

1. Technical Rational Perspective:

From a technical rational perspective, managers focus on making decisions based on objective analysis, rationality, and
efficiency. In the context of information systems, they consider the following aspects:
a. Identifying Information Needs: Managers analyze the information requirements of the organization to determine what data and
information are crucial for decision-making processes.
b. Evaluating Technology: Managers assess various technological solutions and platforms available to support the
organization's information systems. They consider factors such as functionality, scalability, reliability, security, and cost- effectiveness.
c. Assessing Risks: Managers evaluate the potential risks associated with implementing and using information systems. This
includes considerations about data security, privacy, legal compliance, and potential disruptions to business operations.
d. Selecting Systems: Managers participate in the selection process of information systems, including software, hardware, and other
infrastructure components. They analyze available options, gather input from stakeholders, and make decisions based on technical
specifications, compatibility, and alignment with organizational goals.
e. Project Management: Managers oversee the implementation of information systems projects, ensuring that they are delivered
on time, within budget, and meet the specified requirements. They coordinate different teams, allocate resources, and monitor progress
to ensure successful project completion.
 Managers role in Decision Making
2. Behavioral Perspective:
The behavioral perspective recognizes that decision-making is influenced by human factors, including individual and group behaviors,
social dynamics, and organizational culture. Managers consider the following aspects from a behavioral perspective:
a. User Involvement: Managers recognize the importance of involving end-users and stakeholders in the decision-
making process. They seek input, gather feedback, and consider user requirements to ensure that information systems align
with users' needs and expectations.
b. Change Management: Managers understand that implementing new information systems often requires changes
in workflows, processes, and employee roles. They anticipate potential resistance to change and develop strategies to
manage and mitigate resistance through effective communication, training, and organizational support.
c. Organizational Culture: Managers consider the existing organizational culture and its impact on decision- making
related to information systems. They ensure that the proposed systems align with the organization’s values, norms,
and beliefs, and take into account the cultural readiness for adopting new technologies.
d. Communication and Collaboration: Managers foster effective communication and collaboration among different
stakeholders involved in the decision-making process. They facilitate discussions, encourage knowledge sharing, and
promote the exchange of ideas and perspectives to enhance decision quality and stakeholder buy- in.
e. Ethical Considerations: Managers consider ethical implications associated with information systems and data
management. They address issues such as data privacy, security breaches, responsible use of technology, and compliance with legal
and regulatory frameworks.