INFORMATION AND DECISION MAKING

How The Speed and Availability of Information Impact Management's Decision Making

How the speed and availability of information impact management's decision making

Introduction

The problem of decision-making is a major in modern management theory and practice. This is quite natural, since the act of decision-making is central to any process control. Decision-making is present in all control functions.

The information represents the actual state of the object management (controlled system), the state of the environment in which the object of management, management objectives and the actual procedure of the control action. Solutions, in turn, generate management information. It is no accident, in modern literature; management is increasingly seen as a complex information process, depending on the required control functions and various kinds of information. When it comes to strategic planning, we need information on the aims of the organization, the main trends of its development. Talking about the operational management and control, it is assumed the information that should also include the personal characteristics of perpetrators. In this case, come to the fore observation, interviewing, own statistics. Solving the problems of coordination, it should be borne in mind the sources of information such as statistics, reports, expert opinion, and middle managers.

A characteristic feature of any situation related to the decision, is the presence of several alternative (mutually exclusive) options from which you must choose the best one. Select one of the options and represents a solution to decision-makers. Moreover, the options for action aimed at both the holding of certain changes and to maintain (maintaining) the status quo, for example, high market share, productivity. The most difficult decisions relate to the various changes, primarily of a strategic nature.

Annotated Bibliography

Haines, R., Hough, J. R., Haines D.,(2011), “Individual and Environmental Impacts on Supply Chain Inventory Management: An Experimental Investigation of Information Availability and Procedural Rationality”, Journal of Business Logistics; Vol. 31 Issue 2, p111-128, 18p.

There are some tactics in supply chain management for mitigating the inefficiencies suggest that sharing of information between the decision making body is appropriate. On the other hand, there has been a little consideration for individual intervention for using the available information in the process of decision making. This article reflects the outcomes of an experiment in which participants were given instructions to lower the stock of inventory along with the backlog cost of their holding. The analyst recommended that the additional information impacts the supply chain stock management cost just when the logical decision making processes are followed. Lower cost is resulted while the rational decision making is done with backlog information. On the other hand, higher cost is resulted while consumer demand data is available.

Leidner, Dorothy E., & Elam, Joyce J., (1995), “The Impact of Executive Information Systems on Organizational Design, Intelligence, and Decision Making”, Organization Science; Vol. 6 Issue 6, p645-664.

Decision making at managerial level is considered as the most significant function of top level management. The availability of easily accessible information leads to effective decision making. Sources of information can be word of mouth, ...