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1.

What caused the latest revolution in management use of


computers? List at least two causes.
2. List and define the three phases of the decision-making
process (according to Simon).
~. Define DSS.
4. Discuss the major characteristics of DSS.
5. List five major benefits of DSS:.
1. Causes of the Latest Revolution in Management Use of
Computers:
a. Advancements in Big Data and Analytic: The increasing
volume, variety, and velocity of data generated by organizations
and advancements in analytic technologies have revolutionized
how computers are used in management. The ability to process
and derive insights from massive datasets has become a
cornerstone for strategic decision-making.
b. **Integration of Artificial Intelligence (AI) and Machine
Learning (ML):** The integration of AI and ML technologies
into business processes has transformed the management
landscape. These technologies provide advanced analytical
capabilities, predictive modeling, and automation, leading to
more sophisticated and data-driven decision-making.
2. **Three Phases of the Decision-Making Process (According
to Simon):**
a. **Intelligence Phase:** In this phase, decision-makers
identify and define the problem or decision to be made, gather
relevant information, and explore possible solutions. It involves
recognizing the need for a decision and understanding the
factors involved.
b. **Design Phase:** Decision-makers design and evaluate
alternative courses of action based on the information gathered.
This phase involves developing, analyzing, and comparing
potential solutions, considering the consequences of each.
c. **Choice Phase:** In the final phase, decision-makers
select the best alternative among those evaluated during the
design phase. This involves committing to a specific course of
action and implementing the decision.

3. **Definition of DSS (Decision Support System):**


- A Decision Support System (DSS) is an interactive
computer-based information system that assists decision-makers
in utilizing data and models to solve unstructured problems.
DSS provides tools for analyzing information, evaluating
alternatives, and supporting the decision-making process.

4. **Major Characteristics of DSS:**


a. **Interactive:**
- DSS is interactive, allowing users to actively participate in
the decision-making process by exploring data, modifying
models, and assessing different scenarios.
b. **Flexible:**
- DSS is flexible, accommodating various decision-making
needs and adapting to changing requirements.
c. **Adaptable:**
- DSS is adaptable to different decision contexts, allowing
customization to specific organizational needs and decision
scenarios.
d. **Supports Decision Phases:**
- DSS supports all phases of the decision-making process,
from intelligence through design to choice, providing tools and
information at each stage.
e. **Incorporates Data and Models:**
- DSS incorporates data from various sources and employs
analytical models to assist decision-makers in evaluating
alternatives and predicting outcomes.
f. **User-Friendly Interface:**
- DSS typically features a user-friendly interface, making it
accessible to a wide range of users, including non-technical
decision-makers.
g. **Emphasis on Decision Quality:**
- DSS emphasizes improving decision quality by providing
decision-makers with the necessary information and tools to
make informed and effective choices.

5. **Five Major Benefits of DSS:**


a. **Improved Decision Quality:**
- DSS enhances decision quality by providing decision-
makers with timely and relevant information, analytical tools,
and support throughout the decision-making process.
b. **Increased Efficiency:**
- DSS improves decision-making efficiency by automating
certain tasks, streamlining data analysis, and facilitating
collaboration among decision-makers.
c. **Enhanced Collaboration:**
- DSS fosters collaboration among decision-makers by
providing a platform for sharing information, insights, and
analyses, leading to more informed and collective decisions.
d. **Better Adaptation to Change:**
- DSS is adaptable, allowing organizations to respond more
effectively to changing conditions, uncertainties, and dynamic
business environments.
e. **Strategic Alignment:**
- DSS aligns decision-making with organizational goals and
strategies, ensuring that decisions contribute to the overall
success and objectives of the organization.
6. **Why is Management Often Equated with Decision-
Making?**
- Management is often equated with decision-making because
decision-making is a fundamental and integral part of the
managerial process. The role of managers involves making
choices and taking actions to achieve organizational goals.
Decision-making encompasses various aspects of management,
including planning, organizing, leading, and controlling.
Managers are responsible for assessing situations, analyzing
information, and choosing the best course of action to guide
their teams and organizations toward success. Effective
decision-making is a key competency for managers at all levels,
and it plays a crucial role in shaping the direction and outcomes
of an organization.

7. **Major Trends Affecting Managerial Decision-Making:**


a. **Digital Transformation:**
- The pervasive influence of digital technologies, such as
data analytics, artificial intelligence, and automation, is
transforming how managers gather, analyze, and act upon
information. Digital tools are enhancing decision-making
processes and providing new insights for strategic choices.
b. **Globalization:**
- The interconnectedness of global markets and the diversity
of international business environments present challenges and
opportunities for managerial decision-making. Managers need to
consider global trends, cultural nuances, and geopolitical factors
in their strategic decisions.
c. **Data Explosion and Analytics:**
- The exponential growth of data has led to increased
emphasis on data-driven decision-making. Managers are
leveraging advanced analytics, big data, and machine learning to
extract meaningful insights, identify patterns, and make more
informed decisions.
d. **Environmental Sustainability:**
- Growing awareness of environmental issues has influenced
managerial decision-making. Organizations are incorporating
sustainability considerations into their strategies, impacting
decisions related to resource utilization, supply chain
management, and product development.
e. **Remote Work and Collaboration Tools:**
- The rise of remote work and virtual collaboration tools has
altered the dynamics of decision-making. Managers now need to
adapt to leading and making decisions in distributed teams,
relying on technology for effective communication and
collaboration.
f. **Focus on Employee Well-being:**
- The emphasis on employee well-being and work-life
balance is influencing managerial decisions. Organizations are
recognizing the importance of creating a positive work
environment, fostering employee engagement, and aligning
decisions with the well-being of their workforce.
g. **Rapid Technological Advancements:**
- Ongoing technological advancements, such as the Internet
of Things (IoT), blockchain, and augmented reality, are
introducing new possibilities and challenges. Managers must
stay abreast of these technologies to make decisions that align
with organizational objectives and technological trends.
h. **Evolving Customer Expectations:**
- Changing customer preferences and expectations impact
decisions related to product development, marketing strategies,
and customer service. Managers need to be attuned to market
trends and consumer behavior to make decisions that resonate
with target audiences.
i. **Regulatory and Compliance Changes:**
- Shifts in regulations and compliance requirements affect
decision-making, especially in industries with strict regulatory
environments. Managers must navigate and adapt to changes in
legal frameworks to ensure organizational compliance and
mitigate risks.
8. **Definition of Management Science:**
- Management Science, also known as Operations Research
(OR), is an interdisciplinary field that uses mathematical
modeling, statistical analysis, and optimization techniques to
support decision-making and problem-solving in complex
organizational and business situations. Management science
applies quantitative methods to improve the efficiency and
effectiveness of managerial processes, addressing issues related
to resource allocation, logistics, project management, and
strategic planning. It provides analytical tools to enhance
decision-making by offering systematic approaches to solving
problems and optimizing outcomes in various management
domains.
9. **Define Structured, Semistructured, and Unstructured
Decisions:**
- a. **Structured Decisions:**
- **Definition:** Structured decisions are routine, repetitive,
and well-defined. They involve situations where the criteria for
decision-making are clear, and there is a predefined method for
reaching a solution. These decisions are typically made using
established procedures and rules.
- **Example:** Reordering inventory based on a
predetermined reorder point and quantity.

- b. **Semistructured Decisions:**
- **Definition:** Semistructured decisions fall between
structured and unstructured decisions. They involve some
complexity and uncertainty, where part of the decision-making
process is well-defined, but other aspects require judgment and
interpretation.
- **Example:** Strategic decisions related to product
development, where some criteria are known, but others may
depend on market dynamics.

- c. **Unstructured Decisions:**
- **Definition:** Unstructured decisions are complex,
ambiguous, and lack a predefined decision-making method.
These decisions involve high levels of uncertainty, and decision-
makers often rely on judgment, intuition, and creativity.
- **Example:** Choosing a market entry strategy for a new
product where variables are not clearly defined, and various
factors need subjective evaluation.

10. **Categorize Managerial Activities (According to


Anthony):**
- According to Robert N. Anthony, managerial activities can
be categorized into three categories:
- a. **Strategic Planning:**
- Involves defining the organization's mission, setting long-
term goals, and formulating strategies to achieve those goals.
- b. **Management Control:**
- Concerned with monitoring and controlling activities to
ensure that organizational objectives are met. This includes
setting standards, measuring performance, and taking corrective
actions.
- c. **Operational Control:**
- Focuses on the day-to-day operations and processes of the
organization. It involves ensuring that routine activities are
carried out efficiently and effectively.
11. **Define Group Support Systems (GSS):**
- Group Support Systems (GSS) are computer-based tools and
technologies designed to enhance group collaboration and
decision-making. GSS provide a platform for individuals in a
group to share information, discuss ideas, and collectively work
on solving problems or making decisions. These systems include
features such as collaborative document editing, virtual meeting
spaces, and decision support tools to facilitate group interactions
and improve the quality of group decisions.

12. **Relate DSS to EIS, ERP/ERM, SCM, and the Web:**


- Decision Support Systems (DSS) are related to other
information systems as follows:
- a. **EIS (Executive Information Systems):** DSS and EIS
both contribute to decision-making, but EIS is more focused on
providing high-level, strategic information to executives.
- b. **ERP/ERM (Enterprise Resource Planning/Enterprise
Resource Management):** DSS and ERP/ERM systems can be
complementary, with DSS providing decision support tools and
analytics, while ERP/ERM systems handle integrated business
processes.
- c. **SCM (Supply Chain Management):** DSS can assist
in decision-making related to supply chain optimization,
inventory management, and logistics, complementing SCM
systems.
- d.The Web: DSS can leverage the web for data access,
collaborative decision-making, and real-time information,
enhancing its capabilities and accessibility.

13. **Define Knowledge Management:**


- Knowledge Management (KM) is the process of capturing,
organizing, storing, and disseminating an organization's
collective knowledge to enhance learning, decision-making, and
innovation. KM involves creating systems and practices to
identify, document, and share both explicit and tacit knowledge
within an organization, fostering a culture of continuous
learning and improvement.

14. **Define Expert System:**


- An Expert System (ES) is a computer-based information
system that emulates the decision-making ability of a human
expert in a particular domain. It uses knowledge, rules, and
heuristics to analyze information, make decisions, and solve
problems within a specific area of expertise. Expert systems are
designed to provide intelligent assistance and advice in
situations where human expertise is valuable.

15. **List the Major Benefits of Expert Systems (ES):**


- a. **Decision Consistency:**
- Expert systems ensure consistent decision-making by
applying the same rules and knowledge consistently.
- b. 24/7 Availability:
- They can provide expert-level assistance at any time,
overcoming limitations associated with human availability.
- c. **Knowledge Capture and Preservation:**
- Expert systems capture and preserve valuable
organizational knowledge, even when experts retire or leave.
- d. **Training and Skill Enhancement:**
- They can be used as training tools to enhance the skills of
non-experts in a particular domain.
- e. **Cost Savings:**
- Expert systems can reduce the reliance on expensive
human experts for routine decision-making, leading to cost
savings.

16. **Define Neural Computing:**


- Neural Computing, also known as neural networks or
artificial neural networks, is a branch of artificial intelligence
inspired by the structure and functioning of the human brain.
Neural computing involves the use of interconnected nodes
(artificial neurons) that work together to process information,
learn from data, and make predictions. It is particularly useful
for pattern recognition, classification, and solving complex
problems where traditional programming approaches may be
less effective.

17. **Define Intelligent Agents:**


- Intelligent Agents are autonomous computer programs or
systems that can perform tasks, make decisions, and interact
with their environment independently. These agents use artificial
intelligence techniques to analyze data, learn from experience,
and adapt their behavior over time. Examples include virtual
personal assistants, automated trading algorithms, and
autonomous robots.

18. **What is a Hybrid Support System?**


- A Hybrid Support System combines different types of
information systems, technologies, or approaches to provide
comprehensive support for decision-making. It often involves
integrating multiple components, such as decision support
systems (DSS), expert systems (ES), artificial intelligence (AI),
and traditional management information systems (MIS). The
goal is to leverage the strengths of each component to create a
more robust and effective decision support environment. Hybrid
support systems are designed to address diverse decision-
making needs and offer a balanced approach to handling various
types of information and decision contexts.
. Review what is meant by decision-making versus

problem-solving. Compare the two, and determine

whether or not it makes sense to distinguish them.


2. Define a system.

3. List the major components of a system.

4. Explain the role of feedback in a system.

5. Define the environment of a system.

6. Define open and closed systems. Give an example of each.

7. Define efficiency, define effectiveness, and compare and contrast the two.

8. Define the phases of intelligence, design, choice, and implementation.

9. Distinguish a problem from its symptoms.

10. Define programmed (structured) versus non programmed (unstructured) problems. Give one example in each of the following
areas: accounting, marketing, human resources.

11. List the major components of a mathematical model.

1. **Decision-making versus Problem-solving:**


-Decision-making:It involves choosing a course of action
from several alternatives. Decision-making is typically seen as a
step in the problem-solving process. It is the process of selecting
a particular course of action from various alternatives.
-Problem-solving: It is a broader process that includes
defining a problem, generating alternatives, and choosing a
solution. Problem-solving is the systematic process of finding a
solution to a specific issue or challenge.

Comparison:Decision-making is often a part of problem-


solving. Problem-solving is a more comprehensive process that
encompasses decision-making as one of its steps. While
decision-making is about making choices, problem-solving
involves addressing challenges or obstacles to reach a desired
goal.
2. **System:**
- A system is a set of interacting or interdependent
components forming an integrated whole.
- It can be a physical system (e.g., a computer system), a
biological system (e.g., an ecosystem), or an abstract system
(e.g., a business process).

3. **Major Components of a System:**


- Inputs: Resources or data that enter the system.
- Processes: Actions or transformations applied to inputs.
- Outputs: Results or products generated by the system.
- Feedback: Information about the system's performance.
- Control: Mechanisms to regulate or adjust system
processes.

4. Role of Feedback in a System:


- Feedback provides information about the system's output,
enabling adjustments to maintain or improve system
performance.
- Positive feedback enhances or amplifies a system's output.
- Negative feedback reduces or counteracts deviations from
the desired output.
5. **Environment of a System:**
- The environment includes external factors that affect or
are affected by the system.
- It can be physical, social, economic, or cultural.
- The system interacts with its environment, and changes in
the environment may impact the system.

6. **Open and Closed Systems:**


- **Open System:** Interacts with its environment;
exchanges matter and energy with the surroundings. Example:
An organization receiving input from the market and providing
output to customers.
- **Closed System:** Does not exchange matter with its
surroundings, but may exchange energy. Example: Earth is
considered a closed system for matter but an open system for
energy (mostly from the sun).

7. **Efficiency and Effectiveness:**


- **Efficiency:** Doing things right; achieving a goal with
minimum resources.
- **Effectiveness:** Doing the right things; achieving the
intended result.

8. **Phases of Decision-making:**
- Intelligence: Identifying or recognizing a problem.
- Design: Developing alternative solutions.
- Choice: Selecting the best alternative.
- Implementation: Putting the chosen solution into action.

9. **Distinguishing a Problem from its Symptoms:**


- A problem is the underlying issue or challenge.
- Symptoms are observable indicators of the problem but
not the problem itself.

10. Programmed versus Non-programmed Problems:


- **Programmed (Structured) Problems:** Well-defined,
routine problems with established solutions. Example:
Calculating monthly payroll.
- **Non-programmed (Unstructured) Problems:** Novel,
complex problems with no predetermined solution. Example:
Developing a marketing strategy for a new product.

11. **Major Components of a Mathematical Model:**


- **Variables:** Represent factors or quantities that can
change.
- **Equations:** Describe the relationships between
variables.
- Constraints: Limitations or conditions that must be
satisfied.
- Objective Function: Represents the goal or outcome to be
optimized.
. Define optimization and contrast it with sub optimization.

13. Compare the normative and descriptive approaches to decision-making.

14. Define rational decision-making. What does it really mean to be a rational decision-maker?

15. Why do people exhibit bounded rationality when problem-solving?

16. Define a scenario. How is it used in decision-making?

17. How can a DSS support the implementation of a decision?

18. Define implementation.

19. What is a personality (temperament) type? Why is it an important factor to consider in decision-making.

20. Define cognition and cognitive style.

21. Define decision style.

22. Compare and contrast decision-making by an individual with decision-making by a group.

12. **Optimization and Suboptimization:**


- **Optimization:** The process of making something as
effective or functional as possible. It involves finding the best
solution that maximizes or minimizes a particular objective.
- **Suboptimization:** Optimizing a component or part of
a system without considering the overall system's optimization.
This may lead to a less effective overall solution.

13. **Normative and Descriptive Approaches to Decision-


making:**
- **Normative Approach:** Prescribes how decisions
should be made to achieve the best outcome. It provides
guidelines for rational decision-making.
- **Descriptive Approach:** Describes how decisions are
actually made, acknowledging that decision-makers may not
always follow rational guidelines. It focuses on understanding
real-world decision processes.

14. **Rational Decision-making:**


- **Definition:** Rational decision-making involves
making choices that are consistent with maximizing goals or
objectives.
- **Being Rational:** It means weighing alternatives,
considering all relevant information, and choosing the option
that best aligns with one's goals.

15. **Bounded Rationality:**


- **Definition:** Bounded rationality refers to the
limitations on a person's ability to process information and make
perfectly rational decisions.
- **Reasons:** Limited cognitive resources, time
constraints, and the complexity of decision-making situations
contribute to bounded rationality.

16. Scenario:
- **Definition:** A scenario is a narrative description of a
potential future situation or sequence of events.
- **Use in Decision-making:** Scenarios help decision-
makers explore different possible futures, anticipate challenges,
and develop strategies to address uncertainties.

17. **Decision Support System (DSS):**


- **Support for Implementation:** A DSS provides tools,
information, and models to assist decision-makers during the
implementation phase. It aids in monitoring and adjusting
decisions.

18. **Implementation:**
- **Definition:** Implementation is the process of carrying
out or executing a decision or plan. It involves putting chosen
solutions into action.

19. **Personality (Temperament) Type:**


- **Definition:** Personality type refers to individual
differences in characteristic patterns of thinking, feeling, and
behaving.
- **Importance in Decision-making:** Different
personality types may approach decision-making in distinct
ways, considering factors such as risk tolerance and preference
for structured or unstructured processes.
20. **Cognition and Cognitive Style:**
- **Cognition:** The mental processes related to acquiring,
processing, storing, and using information.
- **Cognitive Style:** A person's preferred way of
thinking, encompassing how information is perceived and
processed.

21. **Decision Style:**


- **Definition:** Decision style refers to an individual's
consistent approach to decision-making, including preferences
for gathering information, evaluating options, and making
choices.

22. **Decision-making by an Individual vs. a Group:**


- **Individual Decision-making:** Involves a single
decision-maker considering information, preferences, and
making choices.
- **Group Decision-making:** Involves multiple
individuals interacting to reach a decision. It incorporates
diverse perspectives but may encounter challenges such as
groupthink.
1. What caused the latest revolution in management use of computers? List at least two causes.
The increase in the use of computers by managers stemmed from ‫نم عبنت‬the availability of personal
computers and the introduction of easy-to-use software. The ease of use of computers make the
mangers used them in taking decisions

2. List and define the three phases of the decision- making process (according to Simon).
Simon's three phases of the decision-making process are: intelligence, where conditions that call
for decisions are identified; design, where possible courses of action are invented, developed,
and analyzed; and choice, where a course of action is selected from those available.

2. Define DSS. Decision Support Systems are computer-based information systems that use data
and models to support un-structured decisions made by managers.

4.Discuss the major characteristics of DSS. There are four major characteristics of DSS. These
are: 1) It uses data and models. 2) It is used to assist managers when they solve semi structured
or unstructured problems. 3) It is used to support the manager; it does not replace the manager.
4) Its goal is to support the effectiveness of decisions.

5.List five major benefits of DSS. The major benefits provided by DSS include: 1) It may
provide solutions for problems that cannot be solved by other methods. 2) It performs a
thorough, quantitative analysis in a very short time. 3) It permits what-if analysis quickly and
objectively. This allows several different strategies and conditions to be analyzed. 4) It exposes
the user to new insights, and these can be used as learning tools. 5) It facilitates communication
and improves teamwork. 6) It allows increased control and may improve performance. 7) It can
reduce or eliminate the cost of wrong decisions. 8) It provides consistent and objective decisions.
9) It frees managers for more important tasks because they are able to perform tasks in less time
and with less effort.

6.Define management science. Management science is a quantitative field that utilizes a


scientific approach to decision-making. It involves: 1) defining the problem, 2) classifying the
problem, 3) constructing an appropriate mathematical model, 4) finding and evaluating potential
solutions, and 5) choosing a solution.

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