In management, decision making is the process of identifying problems and opportunities, developing alternative solutions, choosing an alternative, and implementing it.[1]  There are many types of decisions which can be classified as structured, semistructured and unstructured.[2] These types of decisions are made by several type of management. Operational management made structured decision; middle management makes semistructured decision and finally senior management make unstructured decision.

 

            IT or information technology is hardware and software used to create an information system[3] which had help management a lots whether in the organization routine task or in helping senior management making unstructured decision. There are several types of systems used by these type of managements such as management information systems (MIS), executive support systems (ESS), decision-support systems (DSS) and group decision-support systems (GDSS).

 

            In identifying problems and opportunities, MIS has been used to doing this task which these systems allocate resources to managers and departments[4] or providing routine report and exception reporting. This will enable management of an organization to identify problems and opportunities since the goal of management information systems is to enable managers to make better decisions by providing quality information.[5]

            In developing alternative solution, DSS has been used. DSS were created to help managers make tactical decisions which provide support in three main categories: data collection, analysis of models and presentation.[6] This system are ideal because it posses analytical tools for modeling data, enabling users to explore various option quickly.[7]

            GDSS is designed to help managers reach a consensus during meetings.[8] So, this system is used in choosing an alternative. If it is designed properly, a GDSS can give each participant access to the corporate data while she or he is in the meeting.[9] The decisions can be made online since this collaboration tools is so convenience.

 

     

       In implementing the decision made, MIS again plays an important role in this stage. With this system, management levels of an organization can have a view on the report or what have been done resulting of the decision made. Implementation involves making the chosen alternative work and continuing to monitor how well the solution is working.[10]

 

         From here, we able to know that how important of IT to the management decision making. With IT, decision can be easily made and also accurate. With a good decision, organization will able to be operated properly.

 

BACK


 

[1] Straub & Attner, introduction to business 5th edition, Wadswarth publishing company, page 175.

[2]  Kenneth C. Laudon & Jane P.Laudon.©2006,  Management Information System: Managing the Digital firm, Pearson International Edition, page 435.

[3] Straub & Attner, introduction to business 5th edition, Wadswarth publishing company, page 436

[4]  Kenneth C. Laudon & Jane P.Laudon.©2006,  Management Information System: Managing the Digital firm, Pearson International Edition, page 436

[5] ibid, page 596

[6] Straub & Attner, introduction to business 5th edition, Wadswarth publishing company, page 295

[7]  Kenneth C. Laudon & Jane P.Laudon.©2006,  Management Information System: Managing the Digital firm, Pearson International Edition, page 436

[8] Straub & Attner, introduction to business 5th edition, Wadswarth publishing company, page 265

[9] ibid, page 266

[10]  Kenneth C. Laudon & Jane P.Laudon.©2006,  Management Information System: Managing the Digital firm, Pearson International Edition, page 437