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Marakas: Decision Support Systems, 2nd Edition 2003, Prentice-Hall Capter 3 - !

Chapter 3:

Decisions in the Organization

Decision Support Systems in the

21st

Century, 2nd

Editionby George M. Marakas


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Marakas: Decision Support Systes, 2nd Edition !2""3, #rentice$%a&&

Chapter 3 $ 2

3-1: Understanding the Organization

Organization:' uni(ied syste o( resources,

de(ined and structured by subsystes bound

by a set o( stated goa&s

)he *ho&e o( an organization is greater than the

su o( its parts.


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A Nexus of Decisions

)he organization+s purpose is to ake

decisions *ithin a business enironent

)he decisions that are ade identi(y theorganization+s boundaries, po&icies,

procedures and theater o( operations.

)his is independent o( the physica&

ani(estation o( the decision akers- they

can be indiidua&s, groups or DSSs.


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Dimensions of Decisions

Figure 3-1:

Five dimensionsthat can affect

oth the !ind of

decisions and

the methods toma!e them

effective"#.


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Group Structure: Does the decision aker

*ork a&one or hae a support tea0

Group Roles: 1hat ro&es in(orationgatherer, ana&yzer, DSS user are assigned

to others0

Group Processes: Does the process itse&(

a((ect the types o( decision ade0


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Group Style: Does the decision aker+s

sty&e a((ect the 5ua&ity o( the outcoe0

Group orm: Does a socia& psycho&ogya((ect the actiities o( the decision$aking

body0


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Organizationa" Decision $eve"s

Figure 3-2:

%ierarch# of

Organizationa"

Decision $eve"s&


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Organizationa" Decision $eve"s

Operations: 89ine personne& ake decisions

about day$to$day actiities.

!actical: )he p&anning &ee& ip&eentsdecisions ade higher up as *e&& as akes

decisions to ac5uire resources necessary to

aintain capacity.

Strategic: )he senior e;ecuties o( a (ir or

top adinistrators o( an agency.


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