Unit 2

MBA/BBA/B.com /B.Tech /UGC Net

By
Dr. Anand Vyas
 Attributes of information
• Accuracy.
• Completeness.
• Reliability.
• Relevance.
• Timeliness.
its relevance to Decision Making
Management information systems help decision-makers
understand the implications of their decisions. The
systems collate raw data into reports in a format that
enables decision-makers to quickly identify patterns and
trends that would not have been obvious in the raw data.

Information is a basic requirement for decision-making. It

significantly determines the effectiveness of not only the
final decision but also the process of decision-making
itself. Therefore, decision- making is sometimes regarded
as the processing and conversion of information into
action
Types of information.
 Models of Decision Making -
Classical,
The classical model prescribes the best way to
make decisions, based on four assumptions: a
clearly defined problem, eliminated
uncertainty, access to full information, and
rational behavior of the decision-maker.
 The administrative model of decision
The administrative model of decision
making assumes that decision makers'
rationality is bounded and that they're willing
to consider only a limited number of criteria
and alternatives before making decisions. As a
consequence, they settle for the first 'good
enough' solution that they find.
 Models of Decision Making
Herbert Simon's Models
Herbert Simon, the Nobel
Prize winning researcher,
showed that humans went
through three essential
stages in the act of problem
solving. He called these
the Intelligence, Design, and
Choice stages. Decision
making can also be
considered as a type of
problem solving.
 Management Support Systems
• Management Support Systems (MSS) are
computer-based systems that are supposed to
be used by, or at least to support, managers. A
major problem in MSS development is
requirements specification.
 Management Support System
a) Decision Support Systems,
b) Executive Information (support) Systems and.
c) Expert Systems.
 Decision Support Systems,
A decision support system (DSS) is a computer
program application used to improve a
company's decision-making capabilities. It
analyzes large amounts of data and presents an
organization with the best possible options
available.
 Group Decision Support Systems,
and Executive Information Systems
Group Support System (GSS) is a set of techniques, software and
technology designed to focus and enhance the communication,
deliberations and decision-making of groups.
An executive information system (EIS) is a decision support system
(DSS) used to assist senior executives in the decision-making process. It
does this by providing easy access to important data needed to
achieve strategic goals in an organization. An EIS normally features
graphical displays on an easy-to-use interface.
The main difference between EIS and DSS is that the EIS allows senior
managers to take decisions to meet the strategic goals of the
organization while the DSS allows senior managers to take non-
routine decisions