enhancing decision making
TRANSCRIPT
Submitted By1.MIR MD BELAL 1022114557
2.NISHAT YESMIN SONIA 1022114586
3.SIFUDDIN AHAMED 1022114559
4.JOYASREE GHOSH 1022114684
5.KOHINUR AKTHER 1022114580
6.MILLATH HOSSINE 1022114595
contents Business value of improved decision
making .
Types of decisions
The decision making process
Managerial Roles
Real world decision making
What is decision making ? Decision making is the catalyst of that drives
the planning process. An organizations goals follow from decision made by various managers.
Now a days decision making in business used to be limited to management. The different level of
organization such as senior/middle or operational management have used to different decision making.
In taking proper decision we have to think about:
* better decision making.* how does it took place in
the business and other organization.
Business Value Improved Decision Making To improve the decision making of business value we have to think about :
1. What does it mean to the business to make batter decision ?
2. What is the monetary value of decision making ?
Figure : 1Example Decision
Decision Maker
Number of annual decision
Estimated value to firm of a single improved decision
Annual Value
Allocate support to most valuable customer
Accounts Manager 12
Tk.
1oooooTk.
1200000Product call center demand
Call center management 4 150000 600000
Decide parts inventory levels daily
Inventory Management 365 5000 1825000
Identifycompetitive bids from major suppliers
SeniorManagement
1 2000000 2000000
Schedule production to fillorders
ManufacturingManager 150 10000 1500000
Allocate labor to complete a job
ProductionManager
100 4000 4000000
Types of Decisions
There are three types of decision that's are given below:
# Unstructured Decision.
# Semistructered Decision.
# Construct red Decision.
Unstructured DecisionUnstructured Decisions are those in which decision
maker must provide judgment, evaluation and insight to solve the problem.
Semi Structured DecisionSome decision procedure can be per specified, but not
enough to lead to a definite recommended decision. It occurs when only part of the problem has a clear cut answer which is provided by an accepted procedure.
Structured Decisions Structured Decisions are repetitive and routine, and they involve a definite procedure for handling them so that they do not have to be treated each time as if they were new.
Information Requirements of key Decisions groups in a firm:
Decision Characteristics:
Unstructured
Semi structured
Structured
Senior Management
Middle Management
Operational Management
Steps of decision making: There are four steps in decision making.
That’s are given below:
Intelligence.
Design.
Choice.
Implementation.
IntelligenceIt’s consists of discovering,
identifying and understanding the problems occurring in the organization.
ImplementationIt involves making the chosen alternatives work and continuing to monitor how well the solution is working.
Managerial Roles Managerial roles are the expectations of the
activities that managers should perform in an organization.
Managerial Roles fall into three categories:
Interpersonal Roles.
Informational Roles.
Decisional Roles.
Interpersonal Roles:
Inter personal Roles fall into the following steps :
1. Figurehead.
2. Leader.
3. Liaison.
FigureheadManagers act as a figurehead
of the organization, when they represent their companies to the
outside worlds and perform symbolic duties.
LiaisonManagers also acts as liaison between
various organizational level within each of the levels , they serve as liaison among the members of the
management team.
Informational roles
Informational roles involves these steps :
1.nerve center .
2.disseminator and spoke person.
Never centerManager s act the nerve center of their
organization. They receive most concrete, up to date information & re-distribute the it to those who need them.
Disseminator & spokesperson They also act as information
disseminator & spokesperson for their organization.
Decisional Roles
Decisional role involves : # Entrepreneur.
# Disturbance Handler.
#Resource allocator.
# Negotiator .
EntrepreneurManagers act as entrepreneur by
initiating new kinds of activities.
Disturbance handler They handle disturbance arising in the
organization .
Resource allocator Managers allocate resources to staff
members who need them.
NegotiatorThey negotiate conflicts & medicate
between conflicting groups.
Managerial roles and Supporting Information System
Roles Support System
Interpersonal Roles :FigureheadLeader Liaison
None ExistNone ExistElectronic Communication System
Informational roles :Nerve center Disseminator Spokes person
Management Information System, ESS.Mail, Office System Office and Professional system, Workstation .
Decisional Roles EntrepreneurDisturbance handler Resource allocator Negotiator
None exist.None exist.DSS system. None exist.
Real World Decision Making
Investment in information technology do not always produce positive results.
There are three main reasons:
1. Information Quality.
2. Management filters.
3. Organizational culture.
Information quality
High quality decisions requires high quality information. If the output of information system does not meet these quality
criteria, decision making will suffers.
Information Quality DimensionQuality Dimension Description
Accuracy Do the data represent reality?
Integrity Are the structure of data and relationshipsamong the entities and attributes consistent?
Consistency Are the data elements consistently defined?
Completeness Are all the necessary present?
Validity Do data values fall with in defined ranges?
Timeliness Area data available when needed?
Accessibility Are the data accessible , comprehensible and usable?
Management Filters
For instance wall street firms such a bear streams and Lehman Brothers imploded in 2008
because they underestimated the risk of their investments in complex mortgage securities, many of which were based on
subprime loans that were more likely to default. Management wanted to make sure that their firms capital was not all tied up as a cushion against defaults from risky
investing it to generate profits.
Organizational Inertia and PolitiesOrganizations are bureaucracies with limited
capabilities and competencies for acting decisively.
Study off business restructuring finds that firms tend to ignore poor performance until threatened by outside takeover and they systematically blame poor performance
on external forces beyond their control.