The Role of Mis and Dss in Manager’s Decision Making Process

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The role of MIS and DSS in manager’s Decision making process Dr Mehdi Jamshidian Associate professor Isfahan University Ali Safari M.A. business management E-Mail: Key word: MIS, DSS, Decision making process, Models, Problem solving

In today’s business world, there are varieties of information systems such as TPS, DAS, KWS, MIS, DSS, ES, CSCWS, GDSS and ESS. Each plays a different role in organizational hierarchy and decision making process. At present article the authors selected two main information systems, namely, MIS and DSS. After discussing the decision making process based on each concept, its characteristics, its relations and their connections to decision-making process are determined. At the same time, different models and figures are presented to enrich the discussion and to clear the status of each MIS and DSS information system in organizational problem solving.

For the last twenty years, different kinds of information systems are developed for different purposes, depending on the need of the business. Transaction Process System (TPS) function in operational level of the organization, Office Automation Systems (OAS) and Knowledge Work Systems (KWS) support work at the knowledge level. Higher-level systems include Management Information System (MIS) and Decision Support Systems (DSS). Expert System (ES) applies the expertise of decision makers to solve specific, structured problems. On the strategic level of management there is Executive Support Systems (ESS). Group Decision Support Systems (GDSS) and the more generally described Computer Supported Collaborative Work (CSCW) systems aid group level decision making of a semi structured or unstructured variety. In present article the authors discuss two kinds of information system, namely, MIS, and DSS, then based on each concept, its characteristics, its relation to other one and their relations with decisionmaking process in an organization is discussed

Decision Making Process
In the 1950s, Herbert Simon and James March for the first time introduced a different decision making framework for understanding organizational behavior. Although they labored on the on the

December 20-22 2005 / 1384 ‫92آذر ﻟﻐﺎﻳﺖ 1 دي ﻣﺎه‬

On the bureaucratic model by emphasizing that individual work in rational organizations and thus behave rationally, their model (which eventually won Simon the Nobel Prize for economics) added a new dimension: The idea that a human being’s rationality is limited. By offering a more realistic alternative to classical assumption of rational in decision-making, this model supported the behavioral view of individual and organizational functioning. The model suggested that when an individual makes decision, he examines a limited set of possible alternatives rather than all available options. Individual satisfies: That is, “they accept satisfactory or good enough” choice, rather than insist on optimal choices. He makes choices that are good enough because he does not search until he finds perfect solution to a problem [1]. Simon divided kinds of decisions into two basic types: programmed and none programmed.

Programmed decisions are routine and repetitive, and the organization typically develops specific way to handle them. For this kind of routine, repetitive problem, standard arrangement decisions are typically made according to established management guideline. Non-programmed decisions, in contrast, are typically one-shot decisions that are usually less structured than programmed decision [2]. Simon’s model of decision-making has three steps: Intelligence The problem and opportunities are thoroughly investigated


Alternative solution are developed


Select an alternative

Figure1. Steps in Simon's Model [2].

After Simon, George Huber’s expanded the model of problem solving and added two steps into Simon’s model [3]:...
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