Tutorial 9

Section A
1. The ultimate goal of management information and decision support systems is to help
managers and executives at all levels make better decisions and solve important
problems.
a. true
b. false

2. Programmed decisions are made using a rule, procedure, or quantitative method.

a. true
b. false

3. Most financial MISs integrate financial and operational information from multiple
sources, including the Internet, into a single system.
a. true
b. false

4. Decision support systems support optimization, satisficing, and heuristic approaches.

a. true
b. false

5. A group decision support system (GSS), consists of most of the elements in a DSS,
plus software to provide effective support in group decision-making settings. 
a. true
b. false

6. Unlike an individual DSS, a GSS is more difficult to use and is not as flexible.
a. true
b. false

7. The most significant internal data sources for an MIS are the organization’s _____.
a. data from customers, suppliers, competitors, and stockholders  
b. various TPS and ERP systems and related databases
c. Internet Web sites
d. various DSS and GSS systems and users

8. A _____ MIS uses data gathered from both internal and external sources to provide
reporting and aid decision making in areas of product development, distribution,
pricing, and promotions.
a. human resources
b. financial
c. marketing
d. manufacturing

9. Decision support systems:

a. require user requests for reports developed by systems personnel.
b. are used only when making structured decisions.
c. provide reports with fixed and standard formats. 
d. are used for operational, tactical, and strategic decision making.

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 10. Developers of _____ try to build on the advantages of individual support systems
while adding new approaches unique to group decision making.  
a. decision support systems
b. management information systems
c. group support systems
d. geographic information systems

11. An organization might hire an outside group, usually an accounting firm, to perform
a(n) _____ to assess the financial condition of the firm and determine whether
financial statements and reports produced by its financial MIS are accurate.

12. _____ reports provide increasingly detailed data about a situation so analysts can see
data at a high level first and then at more detailed levels.

13. A(n)_____ DSS is concerned with situations or decisions that come up only a few
times during the life of the organization.

Section B
1. Briefly describe the five stage decision making process.

2. Explain the difference between an optimization and satisficing model.

3. Identify and briefly describe the various kinds of reports frequently produced by an
MIS

4. Define the term DSS and briefly describe the basic capabilities of a DSS.

5. How can group support systems help reduce negative group behavior that can lead to
ineffective group decision making?

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 Tutorial 9 Answer

Section A
1. a
2. a
3. a
4. a
5. a
6. b
7. b. various TPS and ERP systems and related databases
8. c. marketing
9. d. are used for operational, tactical, and strategic decision making.
10. c. group support systems
11. external audit
12. Drill-down
13. Ad-hoc

Section B
1. The first stage of the problem-solving process is the intelligence stage wherein you
identify and define potential problems or opportunities as well as investigate resource
and environmental constraints. During the design phase, several alternative solutions
to the problem are identified and evaluated for their feasibility. During the choice
stage, a course of action is selected. During the implementation stage, the solution is
put into effect. In the monitoring stage, the decision makers evaluate the
implementation to determine whether the anticipated results were achieved and to
modify the process in light of new information.

2. An optimization model use problem constraints and finds the best solution to the
problem while meeting the constraints. A satisficing model is one that finds a good,
but not necessarily, the best solution to a problem. Satisficing is used when modeling
the problem properly to get an optimal decision would be too difficult, complex, or
costly. Satisficing does not look at all possible solutions but only at those likely to
give good results.

3. Scheduled reports are produced periodically, such as daily, weekly, or monthly. A key
indicator report summarizes the previous day’s critical activities and is typically
available at the start of the workday. Demand reports are developed to provide certain
information upon request. Exception reports are reports automatically produced when
a situation is unusual or requires management action. Drill down reports provide
increasing detailed data about a situation.

4. A DSS is an organized collection of people, procedures, software, databases, and

devices used to help make decisions that solve problems. DSS systems are more
flexible than MIS systems and have the potential to help decision makers in a variety
of situations. A DSS can assist with all problem solving phases, decision frequencies,
and varying degrees of problem structure. They can provide support for decision
makers at various levels in the organization.

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 5. One key characteristic of any GSS is the ability to suppress or eliminate
group behavior that is counterproductive or harmful to effective decision making.
In some group settings, dominant individuals can take over the discussion, thereby
preventing other members of the group from participating. In other cases, one or two
group members can sidetrack or subvert the group into areas that are non-productive
and do not help solve the problem at hand. At other times, members of a group might
assume they have made the right decision without examining alternatives, a
phenomenon called groupthink. If group sessions are poorly planned and executed,
the result can be a tremendous waste of time. Today, many GSS designers are
developing software and hardware systems to reduce these types of
problems. Procedures for effectively planning and managing group meetings can be
incorporated into the GSS approach. A trained meeting facilitator is often employed
to help lead the group decision-making process and to avoid groupthink.

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