Search

Following are the topics which are covered in this section. You can choose from the sub sections or continue directly below the sub sections.

What is the Process of Decision Making?

It is not possible to take a decision in isolation as every decision is impacted by the past experiences and also by the present conditions and future expectations. At the same time, once a decision has been taken, it is very difficult to reverse it. Therefore it is important to discuss the problem and then take the appropriate decision after all available alternatives have been considered. In this way, the steps that are involved in the process of decision-making can be described as follows:

1. Defining the Problem: the first step that is related with the process of decision-making is to find the real problem. There are many cases when it is not easy to find the real problem. Therefore, the managers should see what the real reason behind the trouble is and what can be the possible solutions to the problem. On the other hand, if the problem is not defined correctly, the decision made for such a problem will also be wrong and as a result, the money and efforts spent to find the decision will be wasted. At the same time, new problems may also be created by the wrong decision instead of solving the real problem.

Before a manager tries to define the problem, it is necessary that the manager should identify the strategic or the critical factor of the problem. It has been mentioned that the theory of strategic factor is necessary when it comes to the application of the process of decision-making. It has also been emphasized that in the process of decision-making, the analysis that has to be made by the manager is in reality a search for strategic factors. These factors can be the basic cause of obstacles due to which it had become difficult to find the proper solution to a problem. On the other hand, when the problem has been properly defined by the managers, then it becomes easy for the managers to solve the problem. Therefore, the determination of the problem is the first step in the process of decision-making.

2. Analyzing the Problem: After a problem has been identified by the managers, the next step in the process of decision-making is to analyze the problem. For this purpose, the managers should gather all information related with the problem and then they are required to decide if the information available to them is sufficient for taking a decision. It has been generally seen that the managers do not have the sufficient information for making a particular decision. For example in some cases, it may be too costly to get the required information. It has been said that for the purpose of making a sound decision, it is not necessary that the managers should have all the facts but it is very important that the managers should be aware of the fact that sufficient information is not available to them so that they can be aware of the level of risk that is involved in a particular decision and also the level of rigidity and precision that can be adopted in the proposed course of action. In this way, whatever information is available to the managers, it should be used for the purpose of analyzing the problem. On the other hand, if sufficient information is not available to the managers, then the level of risk related with the decision should be analyzed.

3. The Alternative Courses of Action Available: A number of solutions are available in case of every problem. On the other hand, if only one solution would have been available regarding a particular problem, there would have been no need for making a decision. Therefore, it is the responsibility of the manager to make efforts to discover that these are the alternatives that are available so that satisfactory results can be achieved while making a decision. Unless several alternatives have been developed by a manager, it is likely that the manager will not be able to make the most appropriate decision. At the same time, it also needs to be noted that even in most desperate situations, several alternatives can be available. Therefore, it is very important that the managers evaluate all the alternatives that are available to them and then make the most appropriate decision. Unless the managers have developed all the possible alternatives, the most appropriate decision cannot be made.

4. Evaluating the Alternatives: After all the available alternatives have been identified by the managers, the next step in the process of decision-making is to evaluate all the alternatives available and then to select the most appropriate one. For this purpose, the managers have to consider the advantages and disadvantages of various alternatives. For this purpose the pros and cons of each alternative has to be evaluated. With the help of this process, the managers can foresee the risk that may be involved in case of each alternative. The managers should evaluate each alternative in terms of the time and money that has to be spent on them. This helps the managers in selecting the alternative that is most economical. A decision is easy to make when it becomes clear that the consequences of a particular alternative is favorable as compared to the other alternatives. On the other hand, when several alternatives are available that have similar advantages, it is difficult for the managers to make their choice. Therefore in such cases, the managers can also combine two or more alternatives. In the same way, there can be a situation where none of the alternatives present before the managers can provide favorable consequences. Therefore, in such a case, the manager may have to make a significant decision of not accepting any of the alternatives available. At the same time, the manager may also try to develop new alternatives.

5. Experience: All managers are aware of the significance of experience in making decisions. The reason is that past experience in making decisions acts as a guide for the managers. The problems and the difficulties that were faced by the managers in the past,help the managers in taking steps in advance so that these problems are not faced again. However, the managers should not blindly follow the past experience. Therefore only if the circumstances in the past as well as at present are exactly the same, only then the managers should select the alternatives from the past. On the other hand, if the two situations are different, the alternative selected in the past may not be the most appropriate in present. Therefore, in such a case, the same decision should not be made by the managers. While the managers rely on the experience, they should also evaluate the situation that was present in the past or in present and at the same time, the future effect of the decision should also be evaluated. In this way, although the past experience can help the managers in making a decision but it should not be the only factor on which the managers rely upon.

6. Experimentation: Generally, in case of a scientific study, experimentation is used. In this case, the different available alternatives are put in practice and therefore the alternative that provides the best results is selected. But in case of management, this type of experimentation cannot be relied upon by the managers. The reason is that it will be very costly to put all the available alternatives to practice. Still, this type of experimentation can be used in a limited way. Therefore whenever any new product is launched in the market, the management may decide to launch the product only in a limited area for the purpose of knowing the reaction of the consumers. In the same way, if the management of the organization is willing to go for a new setup, it may decide that the setup should first of all be applied in a particular branch only. Therefore, the managers should always take their decisions on the basis of the facts available to them as well as on the basis of the analysis of results of such experimentation.

7: Taking the Decision and Following It: When the managers have evaluated the various alternatives available to them, they can take a final decision. This decision has to be communicated to all the persons who have the responsibility to take action regarding the decision. For this purpose, the follow-up action taken by the managers regarding a decision can show if the decision taken by them was based on any wrong premises or facts. If this is the case, the managers can review the decision and can also make the required changes. In this way, it is also very important that the managers follow up the decision taken by them.

What is Decision Making?

Decision-making is considered as an integral part of a manager’s job. The reason is that every day a manager has to make decisions about one thing or the other. In this regard, a decision can be described as the process of selecting out of the available alternatives. Therefore, while making the decision, one course of action has to be selected out of the alternative course of actions that are available. In this way, a number of alternatives may be available to manager but it is the responsibility of the manager to select the best alternative.

Nature of decision-making:
A decision is always related with a problem, conflict or a difficulty. Therefore, decisions help in resolving these conflicts or to deal with these problems. In all the organizations, there are differences of opinions; however the decisions made by the managers can help in maintaining effectiveness of the group. Although it is not necessary that decisions have to be made in case of all problems and in some cases, only the supply of information may be sufficient. For example, there may be a conflict regarding when the various groups should report for re-orientation. Therefore in such a case, by supplying information regarding the training program for different groups, the situation can be handled. Decision-making requires the managers to select from the various alternatives that are available to them. However, the managers may have to select various possibilities before arriving at the final decision. In this way, decision-making is not only related with selecting the best alternative. Sometimes the material that is required for making a decision may be available but still it is not possible to arrive at a decision. Therefore, making a decision also requires a prediction regarding the future while keeping in mind the past as well as the information available at present. As the impact of a decision made in present has to be felt in future, it is necessary that the available information should be analyzed properly and a prediction regarding the future should be made. On the other hand, if the premises on which the decision is based are not true, it is highly probable that the decision will also be erroneous.

Many times, the decisions made by the managers are also impacted by the practice known as ‘follow the leader’. In this case, an influential manager or a leader of the group has set a precedent and this path is readily followed by the others. Therefore in such a case, the decisions made by the leader act as a guide for the others and they also make similar decisions. On the other hand, there are certain situations when the answers to the pertinent questions regarding a problem may also help in making the decision. With the help of these answers, the available choices can be narrowed down and in this way, they facilitate in making the decision.

Information Technology Enabled Services

Introduction and Meaning
Information Technology Enabled Services are also called as the web enabled services or the remote services or the Teleworking. The offering of the services from the remote locations with the help of the harnessing of the power of the Information Technology with the help of the telecommunications is referred to as the Information Technology Enabled Services. These services generally include the whole gamut of the operations by which the information technology for the improvement of the efficiency of an organization is exploited.

Information Technology Enabled Services, depending on the situation can also act as the business processes and the different services performed or provided from a location different from that of their users or the beneficiaries and are then delivered with the help of the information technology over the telecom networks. Information Technology Enabled Services at some stages acts as the avatar or a blessing for the various activities, like wise Information Technology Enabled Services acts as the ‘avatar’ of the business process outsourcing (BPO). In the BPO, complete transfer of the business process or the function to an external service provider takes place.

In the BPO, allover control is possessed by defining very clear service level agreements and the transfer of the ownership of the process to the service provider must be remembered.
Information Technology Enabled Services includes services like the following –

1. Animation
2. Business process outsourcing
3. Back office operations
4. Collection services
5. Customer care
6. Interaction services
7. Data digitization
8. Digital content development
9. Website services
10. Transcription services
11. Translation services
12. Remote education
13. Market research
14. Legal databases

What is Executive Information System? Explain its Characteristics, Capabilities and Benefits

Executive Information System / Executive Support System
An Executive Information System can be defined as a specialized Decision Support System. This type of the system generally includes the various hardware, software, data, procedures and the people. With the help of all this, the top level executives get a great support in taking and performing the various types of the decisions. The executive information system plays a very important role in obtaining the data from the different sources, then help in the integration and the aggregation of this data. After performing these steps the resulting information is displayed in such a pattern that is very easy to understand.

Executive information system is ‘a computer based system that serves the information that is needed by the various top executives. It provides very rapid access to the timely information and also offers the direct access to the different management reports.’

Executive Information System is very user friendly in the nature. It is supported at a large extent by the graphics.

Executive support system can be defined as the comprehensive executive support system that goes beyond the Executive Information System and also includes communications, office automation, analysis support etc.

According to Watson, Executive Information System / executive support system depends on some of the factors that can be summarized as the follows
1. Internal factors
i. Need for the timely information.
ii. Need for the improved communications.
iii. Need for the access to the operational data.
iv. Need for the rapid status updates on the various business activities.
v. Need for the access to the corporate database.
vi. Need for very accurate information.
vii. Need for the ability to identify the various historical trends.

2. External Factors
i. Increasing and intensifying the global competition.
ii. Rapidly changing the business environment.
iii. Need to be more pro active.
iv. Need to access the external database.
v. Increasing the various government regulations.

Characteristics of the Executive support system/ Executive Information System
1. Informational characteristics

i. Flexibility and ease of use.
ii. Provides the timely information with the short response time and also with the quick retrieval.
iii. Produces the correct information.
iv. Produces the relevant information.
v. Produces the validated information.

2. User interface/orientation characteristics
i. Consists of the sophisticated self help.
ii. Contains the user friendly interfaces consisting of the graphic user.
iii. Can be used from many places.
iv. Offers secure reliable, confidential access along with the access procedure.
v. Is very much customized.
vi. Suites the management style of the individual executives.

3. Managerial / executive characteristics
i. Supports the over all vision, mission and the strategy.
ii. Provides the support for the strategic management.
iii. Sometimes helps to deal with the situations that have a high degree of risk.
iv. Is linked to the value added business processes.
v. Supports the need/ access for/ to the external data/ databases.
vi. Is very much result oriented in the nature.

Executive Information System / Executive Support System capabilities
1. Helps in accessing the aggregated or macro or global information.
2. Provides the user with an option to use the external data extensively.
3. Enables analysis of the address and the hoc queries.
4. Shows the trends, the ratios and the various deviations.
5. Helps in incorporating the graphic and the text in the same display, which helps to have a better view.
6. It helps in the assessment of the historical as also the latest data.
7. Problem indicators can be highlighted with the help of the Executive Information System / executive support system.
8. Open ended problem explanation with the written interpretations can be done with the help of the Executive Information System / executive support system.
9. Offers management by the exception reports.
10. Utilizes the hyper text and the hyper media.
11. Offers generalized computing.
12. Offers telecommunications capacity.

Executive Information System / Executive Support System benefits
1. Achievement of the various organizational objectives.
2. Facilitates access to the information by integrating many sources of the data.
3. Facilitates broad, aggregated perspective and the context.
4. Offers broad highly aggregated information.
5. User’s productivity is also improved to a large extent.
6. Communication capability and the quality are increased.
7. Provides with the better strategic planning and the control.
8. Facilitates pro active rather than a reactive response.
9. Provides the competitive advantage.
10. Encourages the development of a more open and active information culture.
11. The cause of a particular problem can be founded.

What are Group Decision Support Systems? What are its Components and Features?

The Decision Support System has been designed in such a way that it can be used conveniently by the individual decision maker but the decision makers need to work in groups. So this Decision Support System does not suit such a process which has given way for the development of the group Decision Support System, which provides with the following advantages over the Decision Support System

1. Better comprehensive consideration of the problems and the various relating issues.
2. Better group understanding of the problem.
3. Less likelihood of quibbling with the help of the 20/20 hindsight.
4. Better group commitment to the decision.
5. Better communication to/with the implementers.

Group Decision Support System according to De Sanctis and Gallupe is “an interactive computer based system, which helps in solving the various un-structured problems with the help of the decision makers working in the groups.

Basic components of the Group Decision Support System
1. Hardware

i. Input / output devices.
ii. Audio visual instruments.
iii. Electronic display board/ screens.
iv. Computer equipments.
v. Conferencing infrastructure.
vi. Network systems.

2. Software
i. Database and database management system.
ii. Modeling capabilities.
iii. Dialogue management with multiple user access.
iv. Specialized application programmes to facilitate the group access.

3. People and the procedure
i. Trained facilitators.
ii. Decision making participants.
iii. Support staff.
iv. Laid down procedure.
v. Modus operandi.

Features of the Group Decision Support System
1. Very much similar to the Decision Support System.
2. Is a group decision facilitator.
3. Extension or expansion of the Decision Support System.
4. Helps in concentrating on the merits of the input without considering about the fact that who gave it.
5. Enables every group member to address the issues.
6. Automated record keeping plays a critical support for the future review and the analysis.

Group Decision Support System success depends on the following factors
1. Improved pre planning.
2. Increased participation.
3. Open, collaborative meeting atmosphere.
4. Criticism free idea generation.
5. Idea organization and then evaluation.
6. Setting priorities.
7. Making decisions depending on the priorities.
8. Documentation.
9. Record keeping of the meetings.
10. Access to the external information.
11. Preservation of the ‘organization memory’.

Recently Added

Follow us on FB