Clarify the Concept of Feedback on Decision Making

Topics: Control theory, Decision making, Decision theory, Decision making software, Feedback, Budget / Pages: 4 (978 words) / Published: Dec 8th, 2012
Block 3:

Block 3 - Section 3

1. Clarify the concept of feedback on decision making?

The idea of 'feedback' emerged from the area of systems thinking & it useful way to consider both the role of information in decision-making & performance of an information system.

• The role of decision maker is to gather information on the situation of interest & use it to compare the actual situation with what it desired as defined by the decision maker's goals.

• Feedback loop: Feed loop is sometimes called balancing loop since its function to keep situation in balance. (Deviation from the desired state in one direction balanced by an action in the opposite direction).

• Negative (balancing) feedback: information about the outcome of the process is being fed back to the beginning of the process in order to control it. For example, reducing expenditure when you receive information that your spending is too high.

• Positive (reinforcing) feedback: reinforces the process & responding to change. ‘Positive’ because it acts to reinforce the effect, either as a viciousالفاسدة circle or a virtuous one.

2. Define the generic types of information it may be required on decision making?

1. Internally generated (from accounting department...) 2. Externally generated(market research) 3. Formal(company documents) 4. Informal (from staff-e mail...) 5. Ad hoc or regular 6. Analytical-subjective 7. From different sources: human, textual, electronic)

3. Clarify the Assessing Information process.

The performance of the information itself maybe judged using the information quality criteria of relevance, reliability & robustness:
Relevance: information is relevance when the recipient is able to use it to perform more effectively than would be possible without it. How important the information is will depend on the extent to which it affects the activity of the recipient.
Reliability: reliable

You May Also Find These Documents Helpful

  • Decision Making and Response Feedback
  • Concepts of Decision Making
  • Decision Making Everday Concept
  • Decision Making
  • Decision Making
  • decision making
  • Decision Making
  • Decision Making
  • Decision Making
  • Decision Making