DECISION MAKING

&
SUPPORT SYSTEMS
By:Aditi Agrawal
Tanushri Singh
What is decision making?

 Decision-making is a cognitive process that results in the selection of a course

of action among several alternative scenarios
 Decision making is one of the most vital managerial skills because it involves
the final execution of a well-thought of plan.
Types of Managerial decisions

 Individual and Group Decisions

 Tactical (Routine) and Strategic (Basic) Decisions
 Programmed and Non-Programmed Decisions
 Oragnisational and Personal Decisions
Tactical and Strategic decisions

 The decisions which are frequently taken to achieve

higher degree of efficiency in the ongoing activities
are known as Tactical or Routine decisions . Eg:
parking facilities, cafeteria services.
 The decisions which are prepared by the top levels of
manager for the formulation of the organisational
rules and regulations, programs etc are called
Strategic or Basic decisions. Eg : implementing new
norms by government to the buissnes etc.
Programmed and Non-programmed
Decisions
 Programmed decisions: decisions which are repetitive in
nature.
 These decisions are taken by middle or low level managers.
These decisions are short –termed. Eg: granting leave to
employee, recording office supplies , purchasing materials.
 Non – programmed decisions: decisions which are not
repetitive in nature.
 These decisions are taken by top level of executives. They do
not have ready-made course of actions , therefore had to get
information, analyse it and then prepare for strategic plan. Eg:
it is situational like demonitization effect on buisnesses.
Decision Making Styles
 All the decisions are made to solve the problems by the managers with different
styles and perspectives. The approach of decision making differs in two dimensions.
One is individual’s thoughts, i.e. rational or instinctive, and other is the (high or
low) tolerance of uncertainty.

Four decision-making styles are resulted by going through two dimensions.

 The style that characterizes by low tolerance for uncertainty along with a rational
way of thoughts is Directive Style.
 The style, which is characterized by a high level of tolerance for uncertainty with
rational thinking way, is Analytic Style.
 Instinctive thinking way and high tolerance towards uncertainty are the
characteristics of Conceptual Style.
 Low tolerance towards uncertainty and instinctive thinking way, are the
characteristics of Behavioral Style.
Decision Support System – Introduction
 DSS are interactive software based system intended to help
managers in decision making by accessing large volume of
information generated from various related information
system involved in business organisation process such as office
system automation system, transaction system etc.
 DSS uses the summary information exception, patterns and
trends using analytical models
 DSS helps in decision making but does not necessarily in taking
decision itself
 The Decision makers compile useful information from raw
data, documents, personal knowledge and business models to
identify and solve problems, and to make decisions
2 types of Decisions
1. Programmed Decisions
These are basically automated process general routine work where
these decisions are taken several times. These decisions follow specific
guidelines and rules.
For e.g. Re-order level inventories
2. Non-Programmed Decisions
These occur in unusual and non-addressed situation, involves:
a. A new decision or situation
b. Do not involve specific rules to be followed
c. Decisions are made based on available information, managerial
description and perception
For e.g. Investing in new technologies
 DSS generally involve non-programmed decisions, therefore, there will
be no exact report containing format for these fixed systems.
 Components of DSS
1. DSS Database: it conains data from various sources, including internal
data from the organisation. The data generated by different
departmants or applications and the external data mined form the
internet, etc.
2. DSS Software System: it do consists of various analytical tools to
process the data from the various departments. In other words it
sought the complex data with analytical tools to ease decision making.
3. User Interface: it helps the user to interact with the system, either to
input the data or to process it or for output one. Help to take effective
decisions by providing user friendly platform.

DSS DSS Software User

Database System Interface
Attributes of the DSS
1. Adaptability and flexibility
2. High level of interactivity
3. Ease of use
4. Efficiency and effectiveness
5. Complete Control by decision makers
6. Ease of development
7. Extendibility
8. Support for modelling and analysis
9. Support for data access
10.Stand alone, integrated and web based
Characteristics of DSS

1. Facilitation.
2. Interaction.
3. Repeated use.
4. Identifiable.
5. Decision Impact.
Benefits of DSS
1. Improves efficiency and speed of decision making activities
2. Increases the control and capability of futuristic decision
making of the organisation
3. Facilitates inter-personal communication
4. Encourages learning and training
5. Since it is mostly used in non-programmed decisions it
reveals new approaches and set up new evidences for an
unusual decision
6. Helps in automated managerial process
 CITIES EFFECTED BY
FOLLOWING DISEASES
IN INDIA
 Diseases Cases Reported
Acute diarrheal 3 Monthly Data of some
disease 4402 Notifiable diseases from
poisoning Food 2680 June to August
Dengue 1405
Chikungunya 610
Viral Hepatitis A 500
Jaundice 207
Malaria 2428
Cases Reported
Cases
5000 Reported
4000 4402
3000 2680
2428
2000 1405
610 500
1000
0 207
 Cases Reported

40,000
100,000
Lifestyle Diseases Cases Reported
Cancer
Cancer 1,00,000
Diabetes
25000 High blood pressure
Spinal disorders Diabetes 45002
Accidents
17324 High blood pressure 17324

45002 Spinal disorders 25000

Accidents 40,000
3 Monthly Data of some Lifestyle
diseases from June to August
Thank you!