Simon Model of Decision Making

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Presentation transcript:

Simon Model of Decision Making

Three Phase Decision-making Process Intelligence searching for conditions that call for decisions Design inventing, developing, and analyzing possible courses of action Choice selecting a course of action from those available

Unstructured problem has no structured phases Semi structured problem has some structured phases Structured problem has all structured phases – Procedures for obtaining the best solution are known – Objectives are clearly defined – Management support systems can be useful

Unstructured problems often solved with human intuition Semi structured problems solve with standard solution procedures and human judgment A Decision Support System can help managers understand problems in addition to providing solutions Goal of DSS: Increase the effectiveness of decision making

Management Science Scientific approach to automate managerial decision making 1. Define problem 2. Classify problem 3. Construct mathematical model 4. Find and evaluate potential solutions 5. Choose and recommend a solution

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