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72 Part I • Decision Making and Analytics: An Overview

For a computerized system to successfully support a manager, it should fit the
decision situation as well as the decision style. Therefore, the system should be flexible
and adaptable to different users. The ability to ask what-if and goal-seeking questions
provides flexibility in this direction. A Web-based interface using graphics is a desirable
feature in supporting certain decision styles. If a DSS is to support varying styles, skills,
and knowledge, it should not attempt to enforce a specific process. Rather, it should help
decision makers use and develop their own styles, skills, and knowledge.
Different decision styles require different types of support. A major factor that deter-
mines the type of support required is whether the decision maker is an individual or a
group. Individual decision makers need access to data and to experts who can provide
advice, whereas groups additionally need collaboration tools. Web-based DSS can pro-
vide support to both.
A lot of information is available on the Web about cognitive styles and decision
styles (e.g., see Birkman International, Inc., birkman.com; Keirsey Temperament Sorter
and Keirsey Temperament Theory-II, keirsey.com). Many personality/temperament tests
are available to help managers identify their own styles and those of their employees.
Identifying an individual’s style can help establish the most effective communication
patterns and ideal tasks for which the person is suited.

Decision Makers Decisions are often made by individuals, especially at lower manage-
rial levels and in small organizations. There may be conflicting objectives even for a sole
decision maker. For example, when making an investment decision, an individual investor
may consider the rate of return on the investment, liquidity, and safety as objectives. Finally,
decisions may be fully automated (but only after a human decision maker decides to do so!).
This discussion of decision making focuses in large part on an individual decision
maker. Most major decisions in medium-sized and large organizations are made by groups.
Obviously, there are often conflicting objectives in a group decision-making setting. Groups
can be of variable size and may include people from different departments or from differ-
ent organizations. Collaborating individuals may have different cognitive styles, personality
types, and decision styles. Some clash, whereas others are mutually enhancing. Consensus
can be a difficult political problem. Therefore, the process of decision making by a group
can be very complicated. Computerized support can greatly enhance group decision
making. Computer support can be provided at a broad level, enabling members of whole
departments, divisions, or even entire organizations to collaborate online. Such support
has evolved over the past few years into enterprise information systems (EIS) and includes
group support systems (GSS), enterprise resource management (ERM)/enterprise resource
planning (ERP), supply chain management (SCM), knowledge management systems (KMS),
and customer relationship management (CRM) systems.

sectiOn 2.2 revieW QuestiOns

1. What are the various aspects of decision making?
2. Identify similarities and differences between individual and group decision making.
3. Define decision style and describe why it is important to consider in the decision-
making process.
4. What are the benefits of mathematical models?

2.3 Phases of the Decision-Making Process

It is advisable to follow a systematic decision-making process. Simon (1977) said that this
involves three major phases: intelligence, design, and choice. He later added a fourth phase,
implementation. Monitoring can be considered a fifth phase—a form of feedback. However,

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