Information systems and managerial decision making

The role of an information system is to support managerial decision processes. Some of these processes can be completely specified in advance and, as long as the specification remains acceptable to management, resolution can be done automatically, within the framework of the information system. However, in other cases, managers are involved in all stages of the decision process, which cannot be completely specified in advance. The task of the information system in these cases is to provide information to the managers engaged in making the decisions. This paper considers these problems from the point of view of the information system designer and makes recommendations about design and implementation.     

Sometimes we're our own worst enemies

There is a sense of frustration among physicians involved in the decision and policy making processes within health care institutions. Because the endpoint is reached at glacial speed, too much time, money, and opportunity is lost. The decision making process can be repetitious and tedious because of unnecessary steps. By eliminating certain tactics and strategies employed by upper-level management in many health care institutions, the decision making process becomes more effective. This article focuses on the medical staff's role in the decision making process; explains why tactics to involve the medical staff are ineffective and why eliminating the medical staff from certain aspects of the process does not jeopardize the institution; and concludes that the hospital board and its delegates should be autonomous in the decision making process.     

Using Risk Communication to Disclose the Outcome of a Participatory Decision-Making Process: Effects on the Perceived Acceptability of Risk-Policy Decisions

It has been suggested that public participation during decision making about risks can lead to more widely accepted risk policies. This article discusses an experiment to determine if this is true when people are made aware of the fact that a participatory decision-making process has taken place only through information disclosed during a subsequent risk communication effort. The results from this experiment showed that, after receiving information during risk communication that cast risk policies about space exploration as the product of a participatory decision process, participants in the study felt more supportive of the resulting decisions than did participants in a control group. This result coincided with the participants in the study group perceiving the risks associated with the decision to be lower and the benefits higher. Responses from these participants also showed that they were more satisfied with the decision-making process than they were with the outcome of the decision itself Therefore, it may be premature to view the objective of participatory decision-making approaches-and the risk communication efforts that discuss them-as a means of making risk policies more widely acceptable to the public at large. Rather, it may be better to view the benefits of these approaches in terms of their ability to help lead to higher quality decisions that are the product of more widely accepted decision processes.     

Top management team constellations and their implications for strategic decision making

Two major themes in the upper echelon decision making literature are the efficacy of the CEO and the composition of the top management team (TMT). Little research has examined their intersection. This study addresses the call to reveal the social processes within TMTs, by focusing on CEO-TMT member interaction in decision making. Drawing on video ethnographic data of two TMTs, we explore the patterns of interactions between CEOs and TMT members in their strategic decision making meetings. Through an analysis of 20 issue discussions, we identify five “constellations”, a team level construct capturing the core relational dynamics that are created through mutual CEO-TMT member influence during a team's discussion of a strategic issue. We explain how these constellations unfold and their implications for the processes and outcomes of TMT strategic decision making. We then elaborate how our findings contribute to the TMT and upper echelon literatures, as well as our understanding of team politics.     

The Effects of Information Overload on Software Project Risk Assessment*

Managers are responsible for providing effective information technology governance of the software development process. Ineffective governance leads to serious resource misallocations and negative consequences concerning Sarbanes‐Oxley compliance. In order for managers to make informed decisions about software development projects, they often need more information than is available through normal information channels, that is, they need an in‐depth review of the at‐risk project. Such in‐depth reviews, however, are costly. Hence, accurate identification of at‐risk projects for in‐depth review is critical to management's ability to govern. This research considers how two factors, information load and time pressure, affect the quality of the project‐selection process. We examine quality by observing the decision strategies involved and then relating these strategies to subsequent decision making. An experiment was conducted with experienced information systems auditors using a combination of policy‐capturing and computerized process‐tracing techniques. The participants in our study cope with information overload by accelerating their decision‐making process and adopting noncompensatory decision processes. Contrary to prior research, our process‐tracing analysis suggests that participants rarely filter information, thus implying that decision makers are unable to process all the information. Coping by resorting to noncompensatory strategies did not decrease decision quality unless combined with accelerated information processing. Participants also increase their weight on the software project risk factors that they repeatedly access and that they view for longer periods of time. The theoretical contributions and practical implications regarding what actions managers can take to reduce the negative impact of information overload are discussed.     

How to support the application of multiple criteria decision analysis? Let us start with a comprehensive taxonomy

Decision making is a complex task that involves a multitude of perspectives, constraints, and variables. Multiple Criteria Decision Analysis (MCDA) is a process that has been used for several decades to support decision making. It includes a series of steps that systematically help Decision Maker(s) (DM(s)) and stakeholders in structuring a decision making problem, identifying their preferences, and building a decision recommendation consistent with those preferences. Over the last decades, many studies have demonstrated the conduct of the MCDA process and how to select an MCDA method. Until now, there has not been a review of these studies, nor a proposal of a unified and comprehensive high-level representation of the MCDA process characteristics (i.e., features), which is the goal of this paper. We introduce a review of the research that defines how to conduct the MCDA process, compares MCDA methods, and presents Decision Support Systems (DSSs) to recommend a relevant MCDA method or a subset of methods. We then synthesize this research into a taxonomy of characteristics of the MCDA process, grouped into three main phases, (i) problem formulation, (ii) construction of the decision recommendation, and (iii) qualitative features and technical support. Each of these phases includes a subset of the 10 characteristics that helps the analyst implementing the MCDA process, while also being aware of the implication of these choices at each step. By showing how decision making can be split into manageable and justifiable steps, we reduce the risk of overwhelming the analyst, as well as the DMs/stakeholders during the MCDA process. A questioning strategy is also proposed to demonstrate how to apply the taxonomy to map MCDA methods and select the most relevant one(s) using real case studies. Additionally, we show how the DSSs for MCDA method recommendation can be grouped into three main clusters. This proposal can enhance a traceable and categorizable development of such systems.     

Invisible Whispering: Restructuring Collaborative Decision Making with Instant Messaging

Organizational decision making is dominated by teams. When an important decision is required, a team is often formed to make it or to advise the individual decision maker, because a team has more resources, knowledge, and political insight than any one individual working alone. As teams have become geographically distributed, collaboration technology has come to play an important role in such collective decision making efforts. Instant messaging (IM) is an increasingly prevalent workplace collaboration technology that enables near‐synchronous text exchanges on a variety of devices. We examined the use of IM during face‐to‐face, telephone, and computer‐mediated team meetings, a practice we call “invisible whispering.” We introduce Goffman's characterization of social interaction as dramatic performance, differentiable into “front stage” and “backstage” exchanges, to analyze how invisible whispering alters the socio‐spatial and temporal boundaries of team decision making. Using IM, workers were able to influence front stage decision making through backstage conversations, often participating in multiple backstage conversations simultaneously. This type of interaction would be either physically impossible or socially constrained without the use of IM. We examine how invisible whispering changes the processes of collaborative decision making and how these new processes may affect the efficiency and effectiveness of collaborative decision making, as well as participation, satisfaction, relationships among team members, and individual attention.     

Integrating decision making and regulation in the management control process

The significance of control in business is undeniable, and this work revisits management control and the management control process. An interpretation of existing approaches leads to a new way of integrating the managing processes of decision making and regulating. This promises to provide the means of a more explicit behavioural control of operational business processes. Such control is made possible where the controlled work activities (and the work activities of the manager) take place in an IT environment which possesses knowledge of such processes. The control action influences operational behaviour by manipulating the definition of these processes at run time. This will enable control structures to be more formalised where appropriate, improve coordination between control and operations, and improve coordination between control processes. Two implementable models of control processes are proposed together with an indication of how they might be integrated into business processes to provide holistic support for business activity.     

Can a Participatory Approach Contribute to Food Chain Risk Analysis?

We consider food chain risks and specifically address stakeholder participation in the risk analysis process. We combine social and natural science perspectives to explore the participation process in relation to food risks and, in particular, to consider how some specific participation processes might be scientifically evaluated and how stakeholder participation in general might be incorporated into food risk decision making. We have built considerations based on three large integrative case studies that examine aspects of participatory processes. Here we use the case studies collectively to illustrate observations and beliefs concerning the nature of the interaction of stakeholders with established quantitative risk methodologies. This account is not supported by any large volume of analysis. The views in the report are expressed in relation to an accepted risk analysis framework and also with respect to probabilistic modeling of risks and are illustrated where possible with anecdotal reports of actual case study events.     

Understanding the Participation of Critical Task Specialists in Strategic Decision Making*

This paper explores the role of critical task specialists in strategic decision making and presents a theoretical model relating critical task specialist participation in decision making to the organization's overall strategy and the nature of the decision. This exploratory study examines scope and intensity of physician participation in hospital decision making. Intensity of critical task specialist participation is explained by content of the decision and by the organization's strategy, while scope of participation is explained by decision content. The findings suggest the need for more complex models of participation than are normally used in decision-making research. The findings also suggest that executives, in managing strategic decision-making processes, should pay attention to questions of both scope and intensity of participation. The results suggest that critical task specialists play a different role in the decision process, depending on specific decision content and organization strategy.     

An environmental decision model for dynamic planning

In the complex, rapidly changing environment facing the modern business enterprise, it has become increasingly difficult to make meaningful predictions concerning future activities. As such, it is especially important for the decision maker to seek means of gathering and evaluating information. Due to the immense amounts of subjective data, the need arises for the development of valid techniques for identifying and quantifying relevant information.Writers in the area of organization theory have emphasized the importance of the relationship between and organization and processes occurring within its environment to the extent that these environmental processes and their impact are considered vital to the ultimate survival of the firm. The Graphical Evaluation and Review Technique (GERT) is an analytical process upon which simulation models can be developed to examine the effect of more sophisticated information processing. The GERT technique serves as an input to decision making and for purposes of analysis will be studied under conditions of the disturbed reactive environment.The essential method upon which this study is based is the development of a model designed to capture the characteristics of the environment. The model in turn is tested under various conditions and changing sets of information to arrive at some idea of the possible implications for decision making under a situation affected by more and different information usage.     

Decision Making in Cross‐Functional Teams: The Role of Decision Power*

Through a series of game‐theoretical models, this study systematically examines decision making in cross‐functional teams. It provides a framework for the design of an organization‐specific decision‐making process and for the alignment of a team's microdecision with the “optimal” decision that maximizes the firm's payoff. This study finds that even without changing the team leader, firms could change and even dictate the team's microdecision outcome via adjusting the team member's seniority, empowering team members with veto power or involving a supervisor as a threat to overrule the team decision. This finding implies that to reposition products in the marketplace, structuring cross‐functional teams’ microdecision‐making processes is essential.     

Media Effects on Group Collaboration: An Empirical Examination in an Ethical Decision‐Making Context

Even though it is widely acknowledged that collaboration underlies much of the decision‐making efforts in contemporary organizations, and that organizational groups are increasingly making decisions that have ethical implications, few studies have examined group ethical decision‐making processes and outcomes. In addition, while there is increasing evidence that groups often collaborate/communicate using different mediating technologies, few studies have examined the effect of the characteristics of the media in group ethical decision‐making contexts. Finally, there is a clear paucity of studies that have investigated group decision making pertaining to information technology (IT)‐related ethical dilemmas, an area of rising importance for information systems (IS) and decision science researchers. This article seeks to address the gaps described above through an experimental study where groups collaborating either in a face‐to‐face context or in a computer‐mediated context (using NetMeeting or Wiki) were required to make a decision with respect to a scenario with an IT‐related ethical dilemma. Results indicate that media characteristics (e.g., anonymity, immediacy of feedback, parallelism) do not have an effect on whether groups make ethical (or unethical) decisions. However, several media characteristics were found to play a significant role on downstream variables, such as the quality of a follow‐up task (i.e., creation of a decision justification document), and overall process satisfaction of the group members.     

Using our brains to develop better policy

Current governmental practices often use a method called weight of evidence (WoE) to integrate and weigh different sources of information in the process of reaching a decision. Recent advances in cognitive neuroscience have identified WoE-like processes in the brain, and we believe that these advances have the potential to improve current decision-making practices. In this article, we describe five specific areas where knowledge emerging from cognitive neuroscience may be applied to the challenges confronting decisionmakers who manage risks: (1) quantifying evidence, (2) comparing the value of different sources of evidence, (3) reaching a decision, (4) illuminating the role of subjectivity, and (5) adapting to new information. We believe that the brain is an appropriate model for structuring decision-making processes because the brain's network is designed for complex, flexible decision making, and because policy decisions that must ultimately depend on human judgment will be best served by methods that complement human abilities. Future discoveries in cognitive neuroscience will likely bring further applications to decision practice.     

Multi-criteria decision support and evaluation of strategies for nuclear remediation management

Environmental emergency situations can differ in many ways, for instance according to their causes and the dimension of their impacts. Yet, they share the characteristic of sudden onset and the necessity for a coherent and effective emergency management. In this paper we consider decision support in the event of a nuclear or radiological accident in Europe. RODOS, an acronym for real-time on-line decision support system, is a decision support system designed to provide support from the early phases through to the medium and long-term phases. This work highlights the role of multi-criteria decision analysis (MCDA) within RODOS in ensuring the transparency of decision processes within emergency and remediation management. Special emphasis is placed on the evaluation of alternative remediation or countermeasure strategies using the multi-criteria decision support tool Web-HIPRE in scenario focused decision making workshops involving different stakeholder and expert groups. Decision support is enhanced by a module that generates natural language explanations to facilitate the understanding of the evaluation process, therefore contributing to the direct involvement of the decision makers, with the aim of increasing their confidence in the results of the analyses carried out, forming an audit trail for the decision making process and improving the acceptability of the system as a whole.     

Technology assessment: Need and motivation of industry

The problems of decision making when the decision concerns large-scale technical plants have increased, largely due to the difficulties of assessing environmental factors. Technology assessment is an approach which can assist in undertaking the necessary analysis which will expose the social impact, participation of affected groups, and the evaluation of political processes for large-scale technical developments. This paper examines the obstacles to the use of Technology assessment techniques by industry and in particular concentrates upon the problems of forecasting future technological change. The paper examines the view that TA is primarily a concept of political decision making and places the concepts of politics in the broadest sense, not merely in a narrow partly political framework. Finally, the paper examines the arguments for and against quantitative evaluation and claims that TA, used properly, can provide valuable qualitative as well as quantitative insights into the impact of processes upon the political, social and economic environment. Thus, suggesting that TA is a technique of forecasting which companies that are involved in the development of major, and therefore heavy resource-consuming, projects should consider the use of this technique as part of their appraisal process.     

复杂决策问题的多元化模型体系研究

鉴于复杂决策问题的特点,仅仅依靠定量模型难以描述和求解复杂决策问题. 从定性到 定量综合集成角度出发,认为复杂决策问题的求解过程需要多元化模型支持. 依据复杂决策问 题的认知层次,提出复杂决策问题的多元化模型体系中包含概念模型、结构模型和数学模型, 并对这三类模型进行了论述.     

Moral Utility Theory: Understanding the motivation to behave (un)ethically

Moral Utility Theory provides an integrative framework for understanding the motivational basis of ethical decision making by modeling it as a process of subjective expected utility (SEU) maximization. The SEUs of ethical and unethical behavioral options are proposed to be assessed intuitively during goal pursuit, with unethical conduct emerging when the expected benefits of moral transgressions outweigh the expected costs. A key insight of the model is that any factors that increase the value of a goal—including incentives, framings, and mindsets—can motivate misbehavior by increasing the SEU of unethical conduct. Although Moral Utility Theory emphasizes the automatic and habitual nature of most SEU appraisals, it also describes a mechanism for initiating the deliberative moral reasoning process: the experience of moral uncertainty. Moral uncertainty is proposed to occur when the SEUs of ethical and unethical behaviors are similar in magnitude, thereby activating the behavioral inhibition system and motivating the allocation of attentional resources toward the decision process. This framework bridges the gap between affective and cognitive perspectives on ethical decision making by identifying automatic evaluations as a central driver of moral decisions while also specifying when and how moral reasoning processes are initiated. By combining dual-process models of morality with well-validated principles from the science of motivation, Moral Utility Theory provides theoretical parsimony and formal modeling potential to the study of ethical decision making. The framework also suggests practical strategies—from employee selection and training to goal setting and compensation systems—for encouraging ethical behavior in organizations.     

The Influence of Context on the Strategic Decision‐Making Process: A Review of the Literature

This paper critically reviews the strategic decision‐making process literature, with a specific focus on the effects of context. Context refers to the top management team, strategic decision‐specific characteristics, the external environment and firm characteristics. This literature review also develops an illustrative framework that incorporates these four different categories of contextual variables that influence the strategic decision‐making process. As a result of the variety and pervasiveness of contextual variables featured within the literature, a comprehensive and up‐to‐date review is essential for organizing and synthesizing the extant literature to explicate an agenda for future research. The purpose of this literature review is threefold: first, to critically review the strategic decision‐making process literature to highlight the underlying themes, issues, tensions and debates in the field; second, to identify the opportunities for future theory development; and third, to state the methodological implications arising from this review.