The purpose of this study is to summarize the major concepts of decision-making and then to explain the relevance of the theories to design of information systems.
The process of decision-making can be described as consisting of three major phases;
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The purpose of this study is to summarize the major concepts of decision-making and then to explain the relevance of the theories to design of information systems.
The process of decision-making can be described as consisting of three major phases;
① intelligence to search out problems,
② design to analyze problems and generate feasible solutions,
③ choice to select among alternatives and implement the choice.
The decision-making systems may be closed with all factors known or open, allowing for new factors to influence the decision.
The decision making may be based on outcomes that are known with certainty, outcomes with known probabilities of occurrence(risk), or outcomes with unknown or very uncertain probabilities (uncertainty).
The decision response may consist of preprogrammed application of decision rules and procedures or may be a nonprogrammed procedure to look for a solution.
The descriptions of decision-making that indicate how decisions should be made are termed normative or prescriptive; the descriptions that explain actual behavior are termed descriptive.
A behavioral model of decision making is descriptive. It explains organizational decision making in terms of quasi-resolution of conflict, avoidance of uncertainty, problemistic search, and organizational learning.
The orientation of MIS to both information and decision means that the MIS analyst/designer needs to be well versed in dicision theory and decision techniques.
The MIS should be designed to provide decision support in the form of various techniques and approaches.