MIS AND DECISION MAKING CONCEPTS

MIS AND DECISION MAKING CONCEPTS

It is necessary to understand the concepts of decision making as they are relevant to thedesign of the MIS. The Simon Model provides a conceptual design of the MIS and decision making, wherein the designer has to design the system in such a way that the problem is identified in precise terms. That means the data gathered for data analysis should be such that it provides diagnostics and also provides a path to bring the problem to surface.

In the design phase of the model, the designer is to ensure that the system provides models for decision making. These models should provide for the generation of decision alternatives, test them and pave way for the selection of one of them. In a choice phase, the designer must help to select the criteria to select one alternative amongst the many.

The concept of programmed decision making is the finest tool available to the MIS designer, whereby he can transfer decision making from a decision maker to the MIS and still retain the responsibility and accountability with the decision maker or the manager. In case of non-programmed decisions, the MIS should provide the decision support systems to handle the variability in the decision making conditions. The decision support systems provide a generalized model of decision making.

The concept of decision making systems, such as the closed and the open systems helps the designer in providing design flexibility. The closed systems are deterministic and rule based; therefore, the design needs to have limited flexibility, while in an open system, the design should be flexible to cope up with the changes required from time to time. The methods of decision making can be used directly in the MIS provided the method to be applied has been decided. A number of decision making problems call for optimization,and OR models are available which can be made a part of the system. The optimization models are static and dynamic, and both can be used in the MIS. Some of the problems call for a competitive analysis, such as a payoff analysis. In these problems, the MIS can provide the analysis based on the gains, the regrets and the utility.

The concepts of the organizational and behavioral aspects of decision making provide an insight to the designer to handle the organizational culture and the constraints in the MIS.The concepts of the rationality of a business decision, the risk averseness of the managers and the tendency to avoid an uncertainty, makes the designer conscious about the human limitations, and prompts him to provide a support in the MIS to handle these limitations. The reliance on organizational learning makes the designer aware of the strength of the MIS and makes him provide the channels in the MIS to make the learning process more efficient.

The relevance of the decision making concepts is significant in the MIS design. The significance arises out of the complexity of decision making, the human factors in the decision making, the organizational and behavior aspects, and the uncertain environments.The MIS design addressing these significant factors turns out to be the best design.