Decision Making Case Study

The basic aspects of the decision making process. First the problem is defined, relevant objects are observed and classified, measurements are taken of their activities and data are collected in a database or file so that the decision maker can understand the problem. From this data, functional relationships are develop from various patterns and predictions, or inferences are made. Criteria are selected for decision making and for enlisting various alternatives. From these criteria a decision model is used to select the best or most satisfactory alternatives or course of action. Management action is then taken. Finally, an accounting system is used to measure the outcome of the action and to feed the results back into the decision process for management to make the next decision. In some case, many of these processing steps are automated. In other case, they are done by the decision maker based on the information provided by the accounting information system and computer software used to assists management in the decision making process. Throughout the decison making process are communication channels through which information flows, and there are numerous feedback loops for more information on the results of actions and its bearing on future decisions.

What is DSS ?
DSS is a system which aids management in some stages in the decision process in situation where some aspects of the process are not well structured or well defined. Decision support software can assists the decision maker in each of the steps in Figure 17-1. It can signal the need for a decision through an exception report. Software can be used to accumulate and organize the data so that managment can be better understand the nature of the problem. It can be used ...

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Conclusion

DSS may provide support to all phase of the decision-making process and to all managerial levels, both for individuals and groups. DSS is designed to support complex managerial problems that other computerized techniques cannot. DSS is user-oriented, utilizes data and frequently models. DSS can improve the effectiveness of decision-making, decrease the needd for training, improve management control, faciliate communication, save effort by the user, reduce costs and allow for more objective decision making. DSS can be used to support individuals or it can be used to support decisions made by groups

References

- Accounting information system, second edition, Roberts A. Leitch / K. Roscoe Davis
Management information and control systems, second edition, Dr. Sushila Madan, Reader, Lady Shri Ram College Univ