Module 17: Decision Making Systems

Includes the analysis of the money, time, effort, and essentially anything expended when implementing a solution.

Allocation of resources

When managers choose between alternatives, they often compare alternatives against selection criteria which may include which of following?

Benefits Costs Advantages

When designing a solution, you should consider other possible plans or ways to overcome the problem. Creating multiple plans (Plan A, Plan B, Plan C, etc.) helps to visualize all possible solutions.

Consider all outcomes

Today's Behavioral scientists have created behavioral models that identify actual management behaviors. Based on their observations, researchers offer a set of five management attributes. Which of the following are contemporary management behaviors?

Currency of information Fragmented activities Perform work at a fast pace

Outcome terminology

Explains the methods used to measure and monitor the belief and action steps of the BAO framework.

There are a number of financial outcomes that are measured. These outcomes include revenue, expenses, return on investment (ROI), net income, cash flow, and return on equity.

Financial

Provide information about future expectations and whether current conditions will meet, exceed, or fail to meet these expectations.

Forecasting reports

When investigating solutions, acquaint yourself with what you know and don't know. Consider the information you already have, consider what additional information you need.

Identify what you know and don't know

These outcomes measure how efficiently a business is operating. It also measures if customer's needs and wants are being met.

Internal Business Processes

Managers perform as leaders for the organization. They represent their business to stakeholders outside the organization and perform a number of figurative responsibilities.

Interpersonal Roles

This investigates the culture of the organization. Measurable outcomes include employee training, retention, satisfaction, gender and ethnic ratios, and compensation.

Learning and Growth

Exception reports

Pinpoints outliers that vary from the norm. This could be when a production quota falls below forecasted levels or when performance of sales associates falls below a pre-defined threshold

Decision making executed by middle managers is often fairly structured to ensure alignment with organizational objectives.

Sales Adherence to organizational guidelines Employee performance

There are several factors that contribute to the quality of information. Which of the following contribute to the creation of quality information?

Timeliness Relevance Accuracy

Select two true statements about unstructured management decisions.

Unstructured decisions involve complex tasks that require each decision to be treated as a new task. Unstructured decisions are often made by senior executives.

Management decisions that involved tasks and choices that encompass prescribed and definite procedures for how they should be handled are referred to as ____ decisions.

structured

Put the steps of 5 Whys analysis in the correct order starting with the first step.

1. identify the current problem. 2. ask why the problem happened. 3. continue to ask why. 4. consult with members of the organization.

Select the true statements about the analytical hierarchy process (AHP) model.

A multi-criteria programming model that uses an analytical hierarchy process for decision making. Intricate situations and scenarios are analyzed by deconstructing the problem into a visible hierarchy that can be analyzed through comparison. Allows for many variables or conditions to be considered and prioritized, resulting in the selection of the best alternatives or projects.

The belief ___ outcome (BAO) framework is a method for structuring research questions that are interconnected with information systems within an organization.

Action

Once a problem has been investigated, analyzed, and determined, it is necessary to determine the best solution to overcome the problem. When investigating a solution, it is important to take into the account which of the following consideration?

Allocation of resources Identify what you know and don't know. Consider all outcomes.

The focus is on who is purchasing products or services. Measurable outcomes include customer satisfaction and retention, product/service delivery, and product/service performance.

Customers

Corporate-level managers/executives are responsible for making decisions that impact profitability and the short-term and long-term success of an organization. In order to get the information they need, managers rely on output provided from ____. These systems are developed by creating a procedure for uncovering precisely what performance metrics are important to assist in making management decisions and what resources are needed to develop these systems.

Executive Support Systems (ESS) Corporate-level managers/executives are responsible for making decisions that impact profitability and the short-term and long-term success of an organization. In order to get the information they need, managers rely on output provided from executive support systems (ESS).

Belief formation

Includes information on the way various psychic states including beliefs, desires, and opportunities about the operating environment are formed.

In their informational capacity, managers are the central location for information provided by the organization.

Informational Roles

Henry Mintzberg, a Canadian researcher on management and business, classifies management roles into three categories. Which of the following are the three categories identified by Mintzberg?

Informational roles Decisional roles Interpersonal roles

Decisional Roles

Managers help to initiate new strategic objectives, handle conflicts, and distribute budgetary resources to departments and employees under their supervisory control.

The classical model of management describes what managers do. Classical management theorist Henry Fayol identified the five classical functions of managers which includes:

Planning Organizing Coordinating

Track current and predicted future levels of production and whether production goals will be met.

Production reports

Action formation

Refers to how the psychic states translate into action by the organization.

Select the true statements about the balanced scorecard method for decision making.

The balanced scorecard framework was developed by Robert Kaplan and David Norton and is used to structure an organization's strategic plan and goals. In order to get the information they need to create a balanced scorecard, managers rely on output provided from executive support systems (ESS). Measurable outcomes on a balanced scorecard include financial, internal business processes, learning and growth, and customers.

According to Mintzberg, there are three categories of management roles. One of these categories is _____ roles where managers represent their business to stakeholders outside the organization and perform a number of figurative responsibilities such as communicating with the public and recognizing employee performance.

interpersonal

Quantifiable values that validate how effectively an organization is accomplishing significant business objectives are called key ____ indicators (KPIs). For example, a KPI for an e-commerce business might measure how well they meeting customer expectations. A KPI can be established that tracks the frequency that the customers are receiving the exact products they ordered.

performance or Performance

First developed by Thomas Saaty, the analytical hierarchy____ (AHP) is a multi-criteria programming model that uses an analytical hierarchy process for decision making in multifaceted operational environments.

process

The Data Management Body of Knowledge (DMBOK) defines data ____ (DQ) as, the planning implementation, and control of activities that apply quality management techniques to data, in order to assure it is fit for consumption and meet the needs of data consumers.

quality or qualities

Decision making involves the examination of well-defined ___ alternatives designed to overcome a problem.

solution or solutions

Decision making that is executed by computers through algorithms and software that can process data at a face pace is referred to as high-______ decision making. Software designed for this type of decision making is created by humans and is designed to identify issues, find solutions to these issues, and implement the programs needed to overcome these issues with an emphasis on transactional speed.

velocity