Enhancing Decision Making

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Lecture Given in CS330

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ENHANCING DECISION-MAKINGCS330

July 21, 2009Allan Caine, adcaine@cs.uwaterloo.ca

Allan Caine, adcaine@cs.uwaterloo.ca

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OUTLINE

1. Leaning Objectives2. Example: School Division’s Salary Budget3. Types of Decisions4. Stages in Decision-making5. Managerial roles and system failure6. Decision Support Systems and Sensitivity

Analysis7. Demo of Excel’s Pivot Tables (Data Analysis)8. Executive Support Systems9. Group Decision Support Systems

Allan Caine, adcaine@cs.uwaterloo.ca

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LEARNING OBJECTIVES

Describe different types of decisions and the decision-making process

Assess how information systems support the activities of managers and management decision making

Demonstrate how decision-support systems (DSS) differ from MIS and how they provide value to the business

Demonstrate how executive support systems (ESS) help senior managers make better decisions.

Evaluate the role of information systems in helping people working in a group make decisions more efficiently.

Allan Caine, adcaine@cs.uwaterloo.ca

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SCHOOL DIVISION’S SALARY BUDGET Teacher’s salary is a function of

Education: B. Ed., M.Ed. Ph.D. Years of Experience: 1 to 10 plus 15 Full time Equivalence: between 0.1 and 1.0 Administrative Allowance, if any

Budget is the sum Teachers’ salaries Cost of benefits Anticipated increase in salary grid

Not an easy calculation!

Allan Caine, adcaine@cs.uwaterloo.ca

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SALARY GRID

Record assumed increasehere

Allan Caine, adcaine@cs.uwaterloo.ca

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BROWNLEE SCHOOL INFO

Change the experience in column CChange Adamache’s FTE in cell E6

Allan Caine, adcaine@cs.uwaterloo.ca

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QUESTIONS

To the nearest dollar, what is the current cost of salaries plus benefits at Brownlee School? $________________

If the salary grid were to increase 2%, what would be the cost of salaries and benefits at Brownlee School? $______________

Now, add one year’s experience to Adamache, Brown, Batavia and Hopewell. Make Adamache full time. Using the assumption from the previous question, what would be the cost of salaries and benefits at Brownlee School? $_____________

In what ways would this budgeting system using Excel (or Open Office) improve management’s decision-making capabilities over hand calculations? Consider that this example is for one school only. School Divisions typically have many schools with hundreds of teachers under their employ.

Allan Caine, adcaine@cs.uwaterloo.ca

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TYPES OF DECISIONS

Unstructured Decisions Novel, non-routine decisions requiring judgment and insights Examples: Approve capital budget; decide corporate

objectives Structured Decisions

Routine decisions with definite procedures Examples: Restock inventory; determine special offers to

customers Semi-structured Decisions

Only part of decision has clear-cut answers provided by accepted procedures

Examples: Allocate resources to managers; develop a marketing plan

Allan Caine, adcaine@cs.uwaterloo.ca

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BROWNLEE SCHOOL

Were the decisions we made: unstructured? structured? or semi-structured? Consider:

Allan Caine, adcaine@cs.uwaterloo.ca

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STAGES IN DECISION-MAKING

What is the problem at Brownlee School?

How would the best solution be assessed?

How would the options be discovered?

How do we assess if the solution is working?

Allan Caine, adcaine@cs.uwaterloo.ca

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MANAGERIAL ROLES

Classical Plan Organize Co-ordinate Decide Control

Behavioral Interpersonal Informational Decisional

Allan Caine, adcaine@cs.uwaterloo.ca

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WHY DO MANAGEMENT SYSTEMS FAIL? Quality of Information Management Filters Organizational Inertia and Policies

Allan Caine, adcaine@cs.uwaterloo.ca

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DECISION SUPPORT SYSTEMS

Allan Caine, adcaine@cs.uwaterloo.ca

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SENSITIVITY ANALYSIS

Is the analysis we did with Brownlee School an example ofsensitivity analysis? Why or why not?

Allan Caine, adcaine@cs.uwaterloo.ca

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EXCEL PIVOT TABLES

Demonstration of the basics of Pivot Tables

Answering non-routine questions

Allan Caine, adcaine@cs.uwaterloo.ca

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EXECUTIVE SUPPORT SYSTEM

The role of executive support systems in the firm

Business value of executive support systems Executive support systems and the digital

firm National Life: ESS for business intelligence Bonita Bay Properties and Nova Scotia Power

Corporation: Monitoring corporate performance with digital dashboards and balanced scorecard systems

Allan Caine, adcaine@cs.uwaterloo.ca

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GROUP DECISION SUPPORT SYSTEM

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