It is necessary to develop the goals and objectives for the MIS which will support the business goals. The MIS goals and objectives will consider management philosophy, policy constraints, business risks, internal and external environment of the organization and the business.

The goals and the objectives of the MIS would be so stated that they can be measured.

The typical statements of the goals are as under-

1. Provide on-line information on the stocks, markets and the accounts balances.
2. The query processing should not exceed more than three seconds.
3. The focus of the system will be on the end user computing and access facilities.
4. Information support will be the first in the strategic areas of management such as marketing or service or technology.

Table: Business Plan versus MIS Plan

Such statements of the goals and objectives enable the designer to set the direction and design implementation strategies for the MIS.

Strategy for the plan achievement – The designer has to take a number of strategic decisions for the achievement of the MIS goals and objectives. They are-

1. Development strategy: An online, a batch, a real time.
2. System Development Strategy: An approach to the system development – Operational versus Functional; Accounting versus Analysis; Database versus Conventional Approach; Distributed versus Decentralized processing; one Database versus Multiple database SSAD vs. OOT.
3. Resource for System Development: In-house versus external, customized development versus the use of packages.

Decision Making

Decision making involves the selection of a course of action from among two or more possible alternatives in order to arrive at a solution for a given problem.

Characteristics of Decision Making

The main characteristics of decision making are as follows.

1. Sequential in nature.
2. Situation based iictivity,
3. Influenced by personal values.
4. Made in institutional setting and business environments.

Following are the characteristics of decision making

1. In business decision making, the decisions are not individual. Each of them has a relation to some other decision or situation.
2. Decision making is situational. It is different from one situation to other taken by a single person.
3. The personal values of decision makers plays a major role in decision making, i.e. the culture discipline and the individuals commitment to the goal will decide the process and success of decision.
4. The decision making process is the complex process in the higher management. The complexity is the result of many factors such as interrelationship among the decision makers, job responsibility, and question of feasibility, ethics and the probable impact on the business.
5. Decision making process requires creativity, understanding the human power, discovers number of human tangible and intangible factors affecting the decision process. It is made according to the business environment.

Advantages of Decision Making –

The advantages of decision making are as foll0ws –

1. Achievements of business objectives.
2. Facilitation of optimum utilisation of resources.
3. Satisfies the whole management process.
4. Rational decision making is innovative.

Open Decision Making

If the manager operates in an environment not known to him, then decision making is called as open decision making.

Closed Decision Making

If the manager operates in a known environment, then it is called as closed decision making.

Decision Making Process

The various steps involved in decision making are as follows –

1. Identifying the Problem- It is necessary to diagnose the real problem into given situation and find out whether it is controllable or not.
2. Analysing the Problem- After defining the problem it is expected to detect the scope and impact of various decisions in different situations.
3. Collecting Relevant Data- Information collected based on the data should be more clear in terms of covering all aspects of problem.
4. Developing Alternative Solution- It is essential to determine some alternative course of actions in order to solve the problem.
5. Selecting the Best Solution – After generating different alternatives the next step is decision making process. In this process decisions are assessed as per the feasibility study.
6. Converting Decision into Actions- After selecting the good alternative, a manager is supposed to convert decision into actions in order to execute the decision.
7. Ensuring Feedback- It is reliable to control the decisions by taking a review of the decision in a situation.

Decision Making Concept

The word decision is derived from the Latin root ‘decido’ that is cut off. Decision can be settlement, a fixed intention on bringing conclusive result, a judgment or a solution. A decision is a choice out of several actions made by the decision maker to achieve some objectives in the given situation. Business decisions are those which are made in the process of conducting the business to achieve its objective in the given environment.

A decision is a course of action which is consciously chosen for achieving a desired result.

—Haynes and Masste

Decision making means to select a course of action from two or more alternatives. It is done to achieve a specific objective or to solve a specific problem.

According to James Stoner, “Decision making is the process of identifying and selecting a course of action to solve a specific problem.”

According to Trewartha and Newport, “Decision making involves the selection of a course of action from among two or more possible alternatives in order to arrive at a solution for a given problem.”

Methods of Decision Making

There’s four common ways of making decisions:

1. Command – decisions are made with no involvement.
2. Consult – invite input from others.
3. Vote – discuss options and then call for a vote.
4. Consensus – talk until everyone agrees to one decision.

1. Command Style Decision Making

Command is when there’s no involvement:

“Let’s start with decisions that are made with no involvement whatsoever. This happens in one of two ways. Either outside forces place demands on us (demands that leave us no wiggle room), or we turn decisions over to others and then follow their lead. We don’t care enough to be involved – let someone else do the work.”

2. Consult Style Decision Making

Consult is when you ask for input:

“Consulting is a process whereby decision makers invite others to influence them before they make their choice. You can consult with experts, a representative population, or even everyone who wants to offer an opinion.

Consulting can be an efficient way of gaining ideas and support without bogging down the decision making process. At least not too much. Wise leaders, parents, and even couples frequently make decisions in this way. They gather ideas, evaluate options, make a choice, and then inform the broader population.”

3. Vote Style Decision Making

Vote is when team members agree to support whatever decision is made:

“Voting is best suited to situations where efficiency is the highest value – and you’re selecting from a number of good options. Members of the team realize they may not get their first choice, but frankly they don’t want to waste time talking the issue to death.

They may discuss options for a while and then call for a vote. When facing several decent options, voting is a great time saver but should never be used when team members don’t agree to support whatever decision is made. In these cases, consensus is required.”

4. Consensus Style Decision Making

Consensus is when there’s high stakes or you need everyone to fully support the final decision:

This method can be both a great blessing and a frustrating curse. Consensus means that you talk until everyone honestly agrees to one decision. This method can produce tremendous unity and high-quality decisions. If misapplied, it can also be a horrible waste of time. It should only be used with (1) high-stakes and complex issues or (2) issues where everyone absolutely must support the final choice.

How To Choose Which Decision Method to Use

1. Who cares? Determine who genuinely wants to be involved in the decision along with those who will be affected. These are your candidates for involvement. Don’t involve people who don’t care.
2. Who knows? Identify who has the expertise you need to make the best decision. Encourage these people to take part. Try not to involve people who contribute to new information.
3. Who must agree? Think of those whose cooperation you might need in the form of authority of influence in any decisions you might make. It’s better to involve these people than to surprise them and then suffer their open resistance.
4. How many people is it worth involving? Your goal should be to involve the fewest number of people while still considering the quality of the decision along with the support that people will give it. Ask: “Do we have enough people to make a good choice? Will others have to be involved to gain their commitment?”