Decision Making

Decisions
Made up of a merger of information, data, facts and belief.

Data by itself does not constitute useful information unless it is analyzed and processed. Efficient decision-making involves a series of steps that require the input of information at different stages of the process, as well as a process for feedback.
Decision Making

Decision-making is the process of selecting the best alternative from the available set of alternatives.
Management is chiefly concerned with decision-making and its implementation.
These decisions should be based on appropriate studies, evaluations and observations.

The DECIDE in Marketing Decision-Making Process
D- Define the marketing problem
E- Enumerate the controllable and uncontrollable decision factors
C- Collect relevant information
I- Identify the best alternative
D- Develop and implement a marketing plan
E- Evaluate the decision and the decision process

Decision support systems (DSS)

A decision support system (DSS) is a computer-based information system that supports business or organizational decision-making activities. DSSs serve the management, operations, and planning levels of an organization and help to make decisions, which may be rapidly changing and not easily specified in advance.
DSSs include knowledge-based systems. A properly designed DSS is an interactive software-based system intended to help decision makers compile useful information from a combination of raw data, documents, personal knowledge, or business models to identify and solve problems and make decisions.Offer potential to assist in solving both semi-structured and unstructured problems.In many organizations they are integrated through a common database.

DSS components may be classified as:
Inputs: Factors, numbers, and characteristics to analyze
User Knowledge and Expertise: Inputs requiring manual analysis by the user
Outputs: Transformed data from which DSS "decisions" are generated
Decisions: Results generated by the DSS based on user criteria
DSSs which perform selected cognitive decision-making functions and are based on artificial intelligence or intelligent agents technologies are called Intelligent Decision Support Systems .
Characteristics of Decision-Support Systems
Decision-Making Information System
Organization uses information from a decision-making information system are as follows:
Change in specific companies outputs (yields, practices) following selected extension activities
Change in staff productivity following selected involvement (in-service training, better transport, etc)
Analysis of economic returns to companies who adopt recommended practices as compared to those who do not.

Benefits
Improves personal efficiency
Speed up the process of decision making
Increases organizational control
Encourages exploration and discovery on the part of the decision maker
Speeds up problem solving in an organization
Facilitates interpersonal communication
Promotes learning or training
Generates new evidence in support of a decision
Creates a competitive advantage over competition
Reveals new approaches to thinking about the problem space
Helps automate managerial processes
Computer based financial system
Asset-liability management
Cash management and debt planning
Capital budgeting
Evaluating financial risks
Financial analysis and diagnosis
Funding strategic product development
Locating banks
Computer based financial system
Planning in mergers and acquisitions
Selecting R&D project
Real estate appraisal and investment
Setting interest rates for money market deposit
Systems that keep track of the firm’s financial assets and fund flows.
Accounting
This module helps to maintain the complete accounting system of an organisation.
General Ledger, Sub Ledger, Petty Cash
Payables, Receivables
Budget, ASSET
Payroll
Daybook, Trial Balance, Income & Expenditure,
Balance Sheet, Budget Analysis, Audit Report.
Human Resources Management
Manpower planning
Massive personnel assignment
Resolving labor management dispute
Tracking critical human resources information
Human Resources Information Systems (HRIS)
Systems that maintain employee records; Track employee skills, job performance, and training; And support planning for employee compensation and career development.
Informaton System in International Business
Allocating investment funds in MNCs
Analyzing international investment options
Planning global logistics
Planning global marketing/production/distribution
Information System in Inventory Planning
Inventory planning and control
Material requirement planning
This module is used to take care the Inventory of Materials of the organization.
Vendor Details
Material Details
Purchase Request
Purchase Order
Purchase Order Amendment
Goods Receipt / Issue

Decision-Making in production
Operations managers are required to make a series ofdecisions in the production function .They plan, organize, staff, direct and control all the activities in the process of converting all the inputs intofinished products. At each level, operating managers are expected to make decisions and implement them too.

The decisions made by operations managers about the activities of production systems tend to fall into three general categories viz.

Strategic decisions relating to products ,processes and manufacturing facilities. These decisions are major ones, having strategic importance and long-term significance for the organization.

Operating decisions relating to planning production to meet demand. These decisions are necessary in order to ensure that ,the ongoing production of goods and services meets the market demand and provides reasonable profits for the organization.

Control decisions relating to planning and controlling operations. These decisions concern the day to day activities of workers ,quality of products and services ,production and overhead costs and maintenance of machines.