4 ORGANIZATIONS & INFORMATION SYSTEMS All organizations have different:Structures/Organizational typesGoalsConstituenciesLeadership Styles, TasksSurrounding Environment
5 Entrepreneurial: Start-up business Organizational StructuresEntrepreneurial: Start-up businessMachine bureaucracy: Midsize manufacturing firmDivisionalized bureaucracy: Fortune 500 Professional bureaucracy: Law firms, hospitals, school systemsAdhocracy: Consulting firm
6 Information systems support all three roles especially decisional. ManagementManagement is a process by which organizational goals (outputs) are achieved through the use of corporate resources (inputs). These organizational decisions (processes) are typically made by managers.A manager's role can be categorized into:Interpersonal - figurehead, leader, liaisonInformational - monitor, disseminator, spokespersonDecisional - entrepreneur, problem solver, resource coordinator, and negotiatorInformation systems support all three roles especially decisional.
7 Manger’ s Role Categories Interpersonal: Managers act as figureheads and leadersInformational: Managers receive and disseminate critical information, nerve centersDecisional: Managers initiate activities, allocate resources, and negotiate conflicts
8 Managers and Decision Making A decision refers to a choice made between alternatives. Decision making in organizations can be classified into two broad categories: problem solving and opportunity exploitation.Why Managers Need the Support of Information Technology. It is very difficult to make good decisions without valid, timely and relevant information.Number of alternatives to be considered is increasingMany decisions are made under time pressure.Due to uncertainty in the decision environment, it is frequently necessary to conduct a sophisticated analysis.It is often necessary to rapidly access remote information.Can we make better decisions?
15 Managers and Decision Making Rational: People, organizations, and nations engage in consistent, value-maximizing calculations or adaptations within certain constraintsCognitive style: Underlying personality dispositions toward the treatment of information, selection of alternatives, and evaluation of consequences
16 Managers and Decision Making Systematic decision makers: Cognitive style, describes people who approach a problem by structuring it in terms of some formal methodIntuitive: Cognitive style, describes people approaching a problem with multiple methods in an unstructured manner
17 Managers and Decision Making Organizational models of decision making: Consider structural and political characteristics of an organization
19 Barriers to Decision Making Personal Barriersหลงใหลในความสำเร็จของตนเองในอดีต (Complacency)หลีกเลี่ยงปัญหา (Defensive Avoidance Reaction)อาการตกใจ (Panic)อคติต่อลักษณะและแนวทางแก้ปัญหา (Representative Bias)กำหนดสมมติฐานของสาเหตุและทางแก้ไขปัญหาล่วงหน้า (Prior Hypothesis Bias)ความมั่นใจว่าควบคุมปัญหาได้ (Illusion of Control)Situational and Environmental Barriersไม่สามารถหาข้อมูลได้เพียงพอ (Lack of information)เผชิญปัญหาตกกระไดพลอยโจน (Decision Escalation Phenomenon) เช่น ลงทุนไปมากจนเกิดความรู้สึกว่า “แพ้ไม่ได้”
20 Decision ProcessDecision makers goes through a fairly systematic process.Act on itReview ItDefinethe“Process or Problem”DevelopAlternativeCourses of ActionSelectThe “Best”OneIntelligence phaseModeling phaseChoice phaseImplementation phase
21 Decision ProcessIntelligence Phase: Collect information, identify problemDesign (Model) Phase: Conceive alternative solution to a problemChoice Phase: Select among the alternative solutionsImplementation Phase: Put decision into effect and provide report on the progress of solution
24 Decisions are classified as: Unstructured: Nonroutine, decision maker provides judgment, evaluation, and insights into problem definition, no agreed-upon procedure for decision makingStructured: Repetitive, routine, handled using a definite procedure