Management Information Systems: Managing the Digital Firm (15th Edition)
Management Information Systems: Managing the Digital Firm (15th Edition)
15th Edition
ISBN: 9780134639710
Author: Kenneth C. Laudon, Jane P. Laudon
Publisher: PEARSON
Question
Book Icon
Chapter 12, Problem 1RQ
Program Plan Intro

Decision making process:

Decision making is the process of making decisions which should be carried over in a typical situation in order to safeguard the organization or to protect the organization from serious loss.

Expert Solution
Check Mark

Explanation of Solution

Levels of decision making:

There are three different levels of decision making. They are as follows:

  • Senior management
  • Middle management
  • Operational management

There may be different decision-making group available in the organization and each groups the three levels of decision making.

Decision making requirement:

Each level of decision making require different information for decision support. For senior management, their requirement could be based on the capital budget, and requirements to decide the long-term goals. For middle management, the requirement is to design the marketing plan, developing the departmental budget and developing new website. For operational management, it should fulfill the requirement of employees, individuals and the team members.

Explanation of Solution

Difference between unstructured decisions, structured decisions, and semi structured decisions.

Unstructured decisionsStructured decisionsSemi structured decisions

Senior management are allowed to take the unstructured decisions in an organization.

Operational management are allowed to take the structured decisions in an organization.Middle management in an organization are allowed to take the semi structured decisions.

The decisions processed here are non-routine, important and should be carried for long-term future.

The decisions processed here are routine and repetitive.The decisions processed here are short term future and mainly used for marketing purpose.

It does not have a well-understood procedure for making the decisions.

It has a definite procedure for making the decisions.It has a definite procedure and clear-cut idea for only the part of the problem

Explanation of Solution

Stages in decision making:

There are four stages in decision making. They are as follows:

  • Intelligence
  • Design
  • Choice
  • Implementation

Intelligence:

Intelligence is used to identify the problem that occurs in an organization. It gathers the activities and inform the managers about the performance of the organization and the problem which exists in an organization.

Design:

During the design, the individual designs the possible solutions to the problems. The manager chooses the best and appropriate solution for the problem.

Choice:

The third stage, choice consists of choosing among alternatives. In this stage, the managers utilizes the information tools and tracks the consequences, costs and opportunities provided by each of the alternative provided in the second stage.

Implementation:

The last stage is the implementation stage where the mangers utilize a reporting system which gives the routine reports for processing the specific solution. Here, the selected solution for the particular problem is implemented and test whether it works well.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!
Knowledge Booster
Background pattern image
Recommended textbooks for you
Text book image
Database System Concepts
Computer Science
ISBN:9780078022159
Author:Abraham Silberschatz Professor, Henry F. Korth, S. Sudarshan
Publisher:McGraw-Hill Education
Text book image
Starting Out with Python (4th Edition)
Computer Science
ISBN:9780134444321
Author:Tony Gaddis
Publisher:PEARSON
Text book image
Digital Fundamentals (11th Edition)
Computer Science
ISBN:9780132737968
Author:Thomas L. Floyd
Publisher:PEARSON
Text book image
C How to Program (8th Edition)
Computer Science
ISBN:9780133976892
Author:Paul J. Deitel, Harvey Deitel
Publisher:PEARSON
Text book image
Database Systems: Design, Implementation, & Manag...
Computer Science
ISBN:9781337627900
Author:Carlos Coronel, Steven Morris
Publisher:Cengage Learning
Text book image
Programmable Logic Controllers
Computer Science
ISBN:9780073373843
Author:Frank D. Petruzella
Publisher:McGraw-Hill Education