Management Information System

Unit - 2

Structure of MIS: Basic structural concepts: formal and informal information systems; public
and private information systems; Information Systems MIS Office automation Decision
Support System Expert system- Knowledge Work Systems, Artificial Intelligence, Group
Decision Support Systems (GDSS).
STRUCTURE OF MANAGEMENT INFORMATION SYSTEM
The architecture of an enterprise information system determines relation of its individual with
its surrounding environment. An effective use of information system requires, apart from other
things its painless integration into the enterprise management.
Formal and Informal Information System
1. Public Information System: Public Information System is used in the sense of being
known to relevant persons in the organization and available to all who have authority to
access the information.
2. Private Information System: Private Information System are kept by individuals. These
may supplement or duplicate the public system.
3. Formal Information System: Formal Information System is manifested by documents
and other records, usually indicating compliance with pre-specified rules and
procedures.
4. Informal Information System: Informal Information System may process information
that is vital to organizational functioning but without records of that process.
5. Formal Public System: Formal Public System is organizational public and access is
dependent only upon having appropriate organizational authority to enter or retrieve
data or to receive reports or inquiry responses.
6. Informal Public System: Informal Public System that serves all persons in the
organization who connect with it.
7. Formal Private System: Formal Private System are individual owner and any staff who
help maintain it. It is based upon the function or the job title but upon the person who
occupies the position.
8. Informal Private System: Informal Private System through personal contacts they
maintain a flow of information which may be critical to decision making but is available
to them as individuals rather than as occupies of a formal position.
The Organizational InformationalEffect
System
of MIs on relative sizes of information system components

Formal structured
Informal
System
unstructured System
Public Formal

Private Formal

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Private Informal

Private Formal

Public Informal

Private Informal

Management Information System

Unit - 2
As Shown in the figure, the public information system of an organization tends to be larger
than the private system, but the latter includes a significant portion of organizational
information flows.
The effect of a comprehensive information system of the type described to increase the
scope of the formal system, public system.
This increases reduces the need for private, formal system and probably reduces the need
for both public and private informal systems.
The one advantage of the formal public system over private information system is that
belongs to the position rather than the person, so that when a new person come into a
position he or she will have in place the necessary information support to function in that
position.
There is an ongoing debate as to how much organizational information processing can
effectively be made part of the formal system and how much should remain in the informal
system.
It can be argued that many important decisions are based on information received through
informal channels that cannot be formalized, especially at top management levels. A wellknown study by Mintzberg shows that as much as 80% of a chief executive time is spent in
verbal communication.
INFORMATION SYSTEMS
The type of information required by decision makers in a company is directly related to the
level of management decision making and the amount of structure in the decision
situations they face. To answer this important question, we must first examine the
characteristics or attributes of information quality. Information that is outdated, inaccurate,
or hard to understand is not very meaningful, useful, or valuable to you or other business
professionals. People need information of high quality, that is, information products whose
characteristics, attributes, or qualities make the information more valuable to them.
Information requirements of decision makers. The type of information required by directors,
executives, managers, and members of self-directed teams is directly related to the level of
management decision making involved and the structure of decision situations they face.

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Dimensions of Information

Time Dimension
o Timeliness:

Information

should

be

provided when it is needed.

Currency: Information should be up-to-

date when it is provided

Frequency: Information should be provided

as often as needed.
Time period: Information can be provided

about past, present and future time periods

Content Dimension:
o Accuracy: Information should be free from

errors.
Relevance: Information should be related to the information needs of a specific

o
o
o

recipient for a specific situation.

Completeness: All the information that is needed should be provided
Conciseness: Only the information that is needed should be provided.
Scope: Information can have a broad or narrow scope, or an internal or external

focus.
Performance: Information can reveal performance by measuring activities

Form
o
o
o
o
o

accomplished, progress made, or resources accumulated.

Dimension:
Clarity: Information should be provided in a form that is easy to understand.
Detail: information can be provided in detail or summary form.
Order: Information can be arranged in a predetermined sequence.
Presentation: Information can be presented in narrative, numeric, graphic, or
other forms.
Media: Information can be provided in the form of printed paper documents,
video displays, or other media

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Management Information System

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Unit - 2

Management Information System

OFFICE AUTOMATION SYSTEM:

Unit - 2

Definition of Office Automation System:

Office Automation Systems are computer based information systems that collect,
process,

store

and

transmit

electronic

message,

documents

and

other

forms

of

communication among individuals, work groups and organizations.

Office automation refers to the application of computer and communication technology to
office functions. Office automation systems are meant to improve the productivity of
managers at various levels of management by providing secretarial assistance and better
communication facilities. Office automations systems are the combinations of hardware,
software and people in information system that process offices transactions and support office
activities at all levels of the organization. These systems include a wide range of support
facilities, which include word processing, electronic filling, electronic mail, message switching,
data and voice communication etc.
Office activities may be grouped under two classes, namely
1. Activities performed by clerical personals (Clerks, secretaries, typists, etc.) like
a. Typing
b. Mailing
c. Scheduling of meeting and conferences,
d. Calendar keeping, and
e. Retrieving documents.
2. Activities performed by the executives (Managers, engineers or other professionals like
economists, researchers, etc.) like
a. Conferencing
b. Production of information (Messages, Memos, reports etc.), and
c. Controlling performance.
As already disused, information technology facilitates both types of activities. A wide variety
of office automation devices like fax machines, copiers, phones etc., are used in offices.
However, nowadays, computer-based office automation systems are gaining popularity
among managers and office staff, because such systems offer integrated solutions that can be
shared automatically. Computer based office automation systems not only cater to the
communication needs of the office managers within the organization but also help to
communicate with external entities such as vendors, investors, customers, etc. Some of the
applications of the office automation systems are
Word processing
This refers to the computer-assisted prepration of documents (like letters, reports, memos,
etc.) from textual data. Text is entered via a keyboard which is diaplayed on the screen of a
visual display unit. Data once reproduced through simple commands which eliminate the need
for redrafting the entire document. Spellings can be checked automatically and pre-defined
letters can be generated, addressed to many persons by merging the letters and address
through a mail-merge program. Now a days, these systems can be trained to understand the
dictation of the manager and to convert it to text on the word processor.
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Electronic filling: This facilitates the filling of incoming and outgoing mails/documents on a
magnetic media. Information is captured from the documents and is stored for future
reference. Computer-based filling systems have the advantage of space saving and permitting
easily modifiable cross-reference indexes. These indexes contain pointers to the location of
the documents itself.
Electronic

Mail: It

involves the

transfer of

letters and

other

documents thorough

telecommunication lines, rather than through physical delivery. An electronic mail system
requires a telecommunication network and software. It speeds up mail delivers and reduces
the cost and time taken by paper-mail.
Local Area Networks have further facilitated the sharing of data files and software among
many different computer terminals. Workstations/terminals can also transfer data/messages
to each other. Voice nail, which is another form of e-mail, transmits messages in dialing d a
voice-mail service. Advancements in multimedia technologies have also made desktop
teleconferencing systems quite popular.
Advantages of office Automation System:

Increased productivity due to better utilization of human records.

Improved quality of work.
Improved organizational effectiveness.
Better service to customers due to fast work.
Better utilization of time and money.
Reduced in travel cost.
Reduced in costs of conducting in-house meetings and trainings.

Limitations of office Automation System

Office staff becomes dependent on computers and other technologies.

Automated machines can also create health problems.

DECISIONS SUPPORT SYSTEM

A decision support system is an information system application that assists decision making.
DSS tends to be used in planning, analyzing, alternatives and trial and error search for
solutions. A DSS as a system that provide tools to managers to assist them in solving semi
structured and unstructured problems in their own. In other words, A DSS is an information
system that support to managers for decision making. DSS is the intellectual resources of
individuals with the capabilities of the computer to improve the quality of decision.
Decision support systems use (1) analytical models, (2) specialized databases, (3) a
decision makers own insights and judgments, and (4) an interactive, computer-based
modelling process to support semi-structured business decisions.
A DSS can be defined as a computer based information system that aids a decision maker in
taking decisions for semi-structured problems.
Definition of DSS: - A decision support system is a specialized kind of information system
which is an interactive system that supports in the decision making process of a manager in
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an organization especially in semi-structured and unstructured situations. The system utilizes
information, models and data manipulation tools to help make decisions in semi-structured to
unstructured situations.
Decision support system as an effective blend of human intelligence, information technology
and software which interact to solve complex problems
-- Gerrity
As a conclusion we can say thatDecision Support System is an interactive, computer based system which supports managers
in making unstructured decisions.
OBJECTIVES OF DSS: - The objective of the DSS are as stated below: 1.
2.
3.

Provide assistance to decision makers in situations which are semi-structured.

Identify plans and potential actions to resolve problems.
Rank among the solutions identified, those which can be implemented and provide a
list of viable alternatives.

ROLE OF DSS IN BUSINESS

DSS is computer based information system for management decision maker who deal with the
semi-structured problems. DSS play an important role in business. It performs various
activities. The role of DSS is explained as follows: 1.

What if analysis: This is the process of assessing the impact of variables. This helps
managers to be proactive rather than reactive in their decision making. This analysis is
critical for semi-structured and unstructured problems because the data necessary to

2.

make such decisions are not available.

Goal oriented: It is process of determining the input values required to achieve a
certain goal. For example, house buyers determine the monthly payment they can
afford (say for example Rs. 5000/-) and calculate the number of such payments

3.

required to pay the desired house.

Risk analysis: Risk is the important factor which affects the business enterprise. DSS
allows managers to assess the risks associated with various alternatives. Decisions can
be classified as low risk, medium risk and high risk. A DSS is particularly useful in

4.

medium risk and high risk environments.

Model building: DSS allows decisions markets to identify the most appropriate model
for solving the problems. It takes into account input variables; inter relationship among
the variables problem assumptions and constraints. For example, a marketing manager
of a television manufacturing company is charged with the responsibility of developing

5.

a sales forecasting model for colour TV sets.

Graphical analysis: This helps managers to quickly digest large volumes of data and
visualize the impacts of various courses of action. They recommend the use of graph
when: a. Seeking a quick summary of data.
b. Forecasting activities.
c. Detecting trends over time.
d. Composing points and patterns at different variables.

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NEEDS OF DSS: - DSS have become necessary for todays manager because of following
reasons: 1.

Fast computation: - A decision maker can perform a large number of computations

2.

very quickly and that too at a low cost with the help of computer support systems.
Enhanced productivity: - Decision support system can enhance the productivity of
support staff and also enable the group members to discuss the problems among

3.

themselves as a distance.
Better decisions: - Computer support system can help a decision-maker in arriving at
a better decision. For example, more alternatives can be evaluated, risk analysis be
performed quickly, and views of experts from different places can be collected quickly

4.

and at a lower cost.

Data transmission: - Sometimes the data, which may be stored at different locations,
may be required to be transmitted quickly from distant locations. Computer support
system can search, store, and transmitted the required data quickly and economically.

ARCHITECTURE OF DECISION SUPPORT SYSTEM

Response

Data Request

COMPONENTS OF DECISION SUPPORT SYSTEM:

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The DSS database: A collection of data from a number

of applications or groups

The DSS software system: Contains the software

tools that are used for analyzing the data, including
OLAP tools (ROLAP, MOLAP and HOLAP), datamining
tools (Clustering, Decision trees), or a collection of
mathematical or analytical models

The user interface: Controls the interaction between

the users of the system and the DSS software tools

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Management Information System

Characteristics of Decision Support System:

Integration
and web
Connection

Semistructur
es Programs

Unit - 2

For
Managers at
different
Levels
For Groups
and
Individuals

Data Access

Modelling
and analysis

Ease of
Construction
by end users

Characterist
ics of DSS

Interdepend
ent
sequential
Decisions

Support
Intelligence
Decisions
Choice
Support
variety of
Decisons
styles and
process

Humans
Control the
Machine
Effectivenes
s

Interactive
Ease of Use

Adaptability
and
Flexibility

Ability to support the solution of complex problems.

Fast response to unexpected situations that result in changed inputs quantitative
analysis.
Designed to help support decisions that are formulated as semi-structured complex
problems.
May be constructed to support onetime decisions.
DSS is typically designed for either a particular decision-maker or a group of decision
makers.
Allows the decisions makers to interact in a natural manner due to the careful design of
the interface.
It is a way to organize information intended for use in decision making.
A decision support system is best conceptualized as a process instead of a product.
Facilities communication.
Cost savings.
Improve managerial effectiveness.
Extensive range of support to management.
Support of individual / groups.
Graphical displays.
Designed and run by managers.
Contain database drawn from internal files and external environment.
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Management Information System

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Support either semi structured or unstructured executive decisions.

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Management Information System

EXPERT SYSTEM:

Unit - 2

An expert system is a computer based information system in which knowledge is represented

in data, in which the processing of the knowledge is directed, primarily by computer
programs. This system has the greatest degree of compute control of three system studied.
Definition of Expert system:
An intelligent computer program that uses knowledge and inference procedure to solve
problems those are difficult enough to require significant human expertise for their solution.
Knowledge necessary to perform at such level plus the interface procedure used, can be
thought of as a model of the expertise of the best practices of the filed
-----E. Figenbaum
Expert system are interactive computer programs incorporating judgement, rules of thumb,
intuition and other expertise to provide knowledge advice about a variety of task
--Gasching, Reboh and Reiter
The term expert system originated because it was aimed, initially, at replicating the abilities
of true human expert.
The structure of Expert System:
Expert system can be viewed as composed of two major parts
1. The development Environment
2. The consultation environment
The expert system development environment is used by the ES builder to build the
components and introduce expert knowledge into the ES knowledge base. The consultation
environment is used by a non-expert to obtain the expert knowledge and advice

Components of Expert System:

The following components exists in a sophisticated expert system:
1. Knowledge Acquisition (An expert and a knowledge engineer)
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Management Information System

2. Knowledge base
3. Interface engine
4. Blackboard (Workplace)
5. User interface
6. Explanation (Justifier)
7. Reasoning capability improvement (Knowledge refinement)

Unit - 2

Knowledge acquisition subsystem:

This program is used by an individual who has expertise in the problem to create, add to, or
change the knowledge base, potential sources of knowledge include human experts,
textbooks, databases, special research reports and the users own experiences.
The knowledge base: It contains rules, facts and description of objects etc., with newer
expert system product the knowledge base is always stored in data. The information is the
knowledge in the knowledge base is everything that is necessary for understanding and
formulating the problem and then solve it.
The information in the knowledge base is incorporated into a computer program by a process
called knowledge representation.
The interface engine: This is the brain of expert system. It applies rules and other forms of
knowledge in an attempt to make sequences of logical conclusions that will solve a users
problems. Forward and backward chaining are the major inferencing strategies. Inference
engine is also known as the control structure or the rule interpreter.
The workplace: Workplace is an area of working memory set aside for the description of a
current problem. It is also used for recording the intermediate results.
User Interface: Expert system contain a language processor for friendly problem oriented
communication between the manager user and the system. This communication is best
carried out in a natural language and in some cases it is supplemented by graphs.
Explanation: In the transfer of expertise and in problem solving, the ability to trace
responsibility for conclusion to their sources is crucial.

Why was a certain question asked by expert system?

How was a certain conclusion reached?
Why was a certain alternative rejected?
What is the plan to reach the solution?

Knowledge reinforcement: A human expert can analyze his own performance, learn and
improve it, for future use. Similarly, such evaluation is necessary in computerized learning so
that the program will be able to analyze the reason for its success or failure.
Characteristics of Expert system:
1. Expert system can replace human beings
2. Export system has three components such as knowledge base, the interface engine and
the user interface
3. Expert system is an application of AI which incorporates knowledge and problems
solving skills of human being into an information system.
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4. Expert system are not designed for one level of management because their primary
goal is to provide expertise to whole organization.
Features of Expert System
1. An expert system is working just like human being in a limited scale in solving problems
2. An expert system is a knowledge based system which represents knowledge in the
rules or frames. These rules or frames are used in drawing inferences
3. An expert system considers multiple hypothesis in arriving conclusions
4. An expert system is not a general expert in solving all the problems in an organization.
It is useful in certain areas to perform limited jobs quickly
Advantages of Expert System
1. It is possible to utilize of experts for decision making.
2. It enjoys the same competitive advantage as other type of information systems
technology.
3. Efficiency of operation of the organization will be improved.
4. It helps to produce new products and services.
5. Finally, it leads to the creation of knowledge based information re
6. Cost reduction
7. Increased output
8. Improved quality
9. Enhanced problem solving
10.Reliability
11.Response time
12.Working with incomplete and uncertain information
limitations of expert systems
1. Knowledge is not always readily available.
2. Expert system works well, only in narrow domain, in some cases very narrow.
3. It is not possible to solve general problems faced by the manager since expert systems
concentrate on certain specific problems.
4. Expert systems fail to solve problems that require broad knowledge and subjective
thinking.
5. Developing and maintaining expert system is a costly affair.
Example to Expert System
1.
2.
3.
4.
5.
6.
7.
8.

If
If
If
If
If
If
If
If

job code = 10S, then minimum pay = 30000 and Maximum pay = 50000.
job code = 20S, then minimum pay = 20000 and Maximum pay = 30000.
operate = lathe or milling, then job code = 10S.
operate = front end loader, then job code = 20S.
minimum >= 30000, then life insurance = 3 lakh.
minimum <= 30000, then life insurance = 2 lakh.
Name = Mahesh, then operating = Milling Machine.
Name = Ram, then operating = Front end loader.

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Management Information System

9. If Name = Ganesh, then operating = Lathe.

Unit - 2

Questions
1. What is Harish Maximum Pay?
2. What is Ram life insurance?
3. Person X has life insurance 3 Lakh, who could be person X be?

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Management Information System

Knowledge Management system

Unit - 2

Knowledge Management. Knowledge is actionable information. What do we mean by

knowledge management? It is a systematic process for capturing, integrating, organizing, and
communicating knowledge accumulated by employees. It is a vehicle to share corporate
knowledge so that the employees may be more effective and be productive in their work.
Where does the knowledge exist in a corporation? Corporate procedures, documents, reports
analyzing exception conditions, objects, math models, what-if cases, text streams, video clips
all of these and many more such instruments contain corporate knowledge.
A knowledge management system must store all such knowledge in a knowledge repository,
sometimes called a knowledge warehouse. If a data warehouse contains structured
information, a knowledge warehouse holds unstructured information. Therefore, a knowledge
management framework must have tools for searching and retrieving unstructured
information.
The leveraging of collective wisdom to increase responsiveness and innovation.

-The Delphi

Group
KM is intended to allow organizations to protect and develop their knowledge resource.

The Applied Knowledge Resource Institute

KM is a management discipline that focuses on enhancing knowledge production, integration
and use in organizations.

- Mark McElroy, Knowledge

Management Consortium
A cycle of knowledge creation, integration and dissemination. - Gerhard Fisher, Jonathan
Ostwald, Univ. of Colorado
Knowledge Management involves people, technology and process in overlapping parts.
Using accessible knowledge from outside source
Embedding and storing knowledge in the business process products and services
Representing knowledge in database and documents
Prompting knowledge growth through the organization culture and incentives
Transforming and sharing knowledge throughout the organization
Knowledge Management is a discipline of identifying, capturing, retrieving, sharing, and
evaluating the enterprise information assets

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People
Asset teams
Customer focus
Shared team skills
Decisions moved away from
the top
Collaboration
Team based rewards
Rapid pace of change
Process
Focus on the core business
Outsource non-core activities

& staff
Buy dont build ...
Focus on asset life cycle
Focus on portfolios
Partner & collaborate
but be profitable now!
Technology
deep water
Horizontal drilling
Data explosion (e.g., 4D seismic)
Global communications
Computing power @ low cost
Visualization
Object technology
Internet & WWW
Knowledge
Knowledge is neither data nor information though it is related to both Data, information
and knowledge is not interchangeable
Knowledge is a mix of framed experience, values, contextual information, and expert
insight that provides a framework for evaluating and incorporating new experiences
and information.
Knowledge has become a health care asset not only for the health provider, but for the
patient as well.
Health care now, more than ever before, requires quality, value, service, innovation,
efficiency and effectiveness.
If information is to become knowledge, then people must do the work to accomplish
meaning.
o How does this compare to others?
o What are the implications for decisions?
o How does this relate to others?
o What do others think?
KNOWLEDGE MANAGEMENT SYSTEM

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CHALLENGES IN BUILDING KM SYSTEMS

Culture getting people to share knowledge
Knowledge evaluation assessing the worth of knowledge across the firm
Knowledge processing documenting how decisions are reached
Knowledge implementation organizing knowledge and integrating it with the
processing strategy for final deployment
KNOWLEDGE MANAGEMENT DRIVERS
Corporate Knowledge
Failure to know what you know

Employee

knowledge

vs.

corporate

knowledge
Lack of systematic approaches to learning &
unlearning
Organizational structure
Lack of cross-functional, project-centric
knowledge
Inability to keep pace with effects of
changing business environment
(Market development, customer preferences etc.)
Business processes
Improve competitiveness through better use of knowledge, e.g.
Elimination of poor quality (avoid repeated mistakes)
Avoid unnecessary reinvention
Improve prediction & planning capability

Improve competitive responsiveness (best: become leader)

Technology:
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Management Information System

Web Services

Unit - 2

Enabling computer-to-computer information processing via enhanced protocols

based on HTTP
Standards such as XML, SOAP, WSDL and UDDI
Semantic Web & Semantic Web Services
Bringing meaning, trust and transactions to the Web
Creating an object-oriented Web information space
Standards such as Web Ontology Language (OWL)
GRID Services
Regarding computing as an information utility
Custom configure remote computing dynamically
Service-Oriented Architectures
Providing computing and information processing as services
Software agents to manage services
Artificial Intelligence
John McCarthy, who coined the term Artificial Intelligence in 1956, defines it as "the science
and engineering of making intelligent machines, especially intelligent computer programs.
'The exciting new effort to make computers think ... machines with minds, in the full and
literal sense' (Haugeland, 1985)
Artificial Intelligence is a new electronic machine that stores large amount of
information and process it at very high speed
The computer is interrogated by a human via a teletype It passes if the human cannot
tell if there is a computer or human at the other end
The ability to solve problems
It is the science and engineering of making intelligent machines, especially intelligent
computer programs. It is related to the similar task of using computers to understand
human intelligence
Importance of AI
Game Playing
You can buy machines that can play master level chess for a few hundred dollars. There is
some AI in them, but they play well against people mainly through brute force computation-looking at hundreds of thousands of positions. To beat a world champion by brute force and
known reliable heuristics requires being able to look at 200 million positions per second.
Speech Recognition
In the 1990s, computer speech recognition reached a practical level for limited purposes.
Thus United Airlines has replaced its keyboard tree for flight information by a system using
speech recognition of flight numbers and city names. It is quite convenient. On the other
hand, while it is possible to instruct some computers using speech, most users have gone
back to the keyboard and the mouse as still more convenient.
Understanding Natural Language
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Unit - 2
Just getting a sequence of words into a computer is not enough. Parsing sentences is not
enough either. The computer has to be provided with an understanding of the domain the text
is about, and this is presently possible only for very limited domains.
Computer Vision
The world is composed of three-dimensional objects, but the inputs to the human eye and
computers' TV cameras are two dimensional. Some useful programs can work solely in two
dimensions, but full computer vision requires partial three-dimensional information that is not
just a set of two-dimensional views. At present there are only limited ways of representing
three-dimensional information directly, and they are not as good as what humans evidently
use.
Areas of artificial intelligence:
Expert System: Refer to Expert System
Natural Languages: concerned with the development of human language computer
interface and with the translation of human languages.
Patterns recognition: Attempts to identify patterns in visual auditory and other signals
in data.
Vision systems: address the technology required for computer system to see in night
time.
Robotics:

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Unit - 2
Group decision support system (DSS): - A group decision support system is a decision
support system that facilitates decision making by a team of decision markets working as a
group. The importance of collective decisions is being felt today. For main issue to be sorted
out, brainstorming sessions are carried out and the collective pool of ideas and opinions give
a final shape to a decision. A GDSS is a DSS that facilitates decision making by a team of
decision maker working as a group.
A GDSS is an interactive, computer based system that facilitates solution of unstructured
problems by a set of decisions makers working together as a group. A GDSS is superior then
DSS because in GDSS the decisions are taken by a group of DSS. So it is superior to the DSS.
Characteristics of GDSS: The main features of GDSS is explained as follows:

A GDSS is a goal oriented. A GDSS is designed with the goal of supporting groups of

decision makers in their work.

A GDSS is a specially designed information system.
A GDSS is easy to learn and to use.
A GDSS is designed with the goal of supporting groups of decisions makers in their

work.
The GDSS is designed to encourage activities such as idea generation, conflict
resolution and freedom of expression.

Types of GDSS:
There are three types of computer based supports are available: Decision Network: This type helps the participants to communicate each other
through network or through a central database. Application software may use
commonly shared models to provide support. The commonest implementation using
local area network and microcomputers. The technology filters out many group
dynamics of a participative meeting.
Decision Room: Participants are located at one place i.e. the decision room. The
purpose of this is to enhance participants interactions and decision making by
computerized within a fixed period of time using a facilitator.
Teleconferencing: Groups are composed of members or sub groups that are
geographically dispersed; teleconferencing provides interactive connection between
two or more decisions rooms. This interaction will involve transmission of computerized
and audio visual information. Decision network can be viewed as the use of local area
network, for decision making involving groups the decision room is entirely new
development. The decision room should consist of a table with network workstations for
the purpose. Breakout rooms, used for similar discussions, are also equipped with
similar machines. A combinations of overhead projector, flipchart, photocopier and
other presentations devices are provided as well.
Advantages of GDSS
1. Take better decision: Through the GDSS we can take better decisions because the
under GDSS the decisions are taken by a group of DSS.
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Unit - 2
2. To solve the problem: GDSS provide solution to unstructured problems. GDSS collects
various type of information at various sources.
3. To minimize the risk: GDSS allows managers to assess the risks associated with
various alternatives. This helps managers to be proactive rather than reactive.
4. To collect large amount of information: GDSS collect information at

various

sources for making decision making. This information minimizes the risk.
5. To provide interactive communication: GDSS provide interactive communication.
It takes better decision through the interactive communication.
6. To improve the decision making process: GDSS improve the decision making
process because GDSS is a goal oriented. When the GDSS is designed the goal is
considered.
7. To make coordination in various activities: In GDSS decision are taken by a group
of DSS. The work is divided into different parts then each DSS performs own work. So
the coordination is possible.
Disadvantage of GDSS: The disadvantage of GDSS are as follows: 1.
2.

More chances for clash of opinions are there.

Very large group bring work complex.

Application of Group Decision Support System

1.
2.
3.
4.
5.
6.
7.
8.
9.
10.

For meetings.
Marketing.
Banking sector.
Stock exchange/foreign market.
Brain storming.
Maintaining records.
Assessing the judgmental tasks.
Office automation.
Documentation.
Engineering firms.

ARCHITECTURE of GDSS

Response

Data Request

Components of GDSS: The main components of GDSS is explained as follows: 1.

Hardware: It includes Single PC, Computer PCs and Keypads, a decision room,
distributed GDSS, Audio Visual Aids, Network Equipment etc.

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Management Information System

Unit - 2
2.
Software: GDSS software includes modules to support the individual, the group, the
process and specific tasks. The software allows each individual to do private work, the
3.

usual collection of text and file creation, graphics, spreadsheet and DBMS.
Procedure: It enables ease of operation and effective use of the technology by group

4.

members.
People

How GDSS can enhance group decision making:

GDSS help to enhance group decision making by following ways:
1.

Improved preplanning: Improved preplanning forces an agenda to keep the meeting

2.

on track.
Increased participation: More number of persons, result more effective contribution

3.

towards decisions.
Open, collaborative meetings atmosphere: GDSS help to provide open, and

4.

collaborative meeting atmosphere which provide nonjudgmental input by all attendees.

Criticism free idea generation: GDSS provide criticism free idea generation with

5.

more inputs and better ideas.

Documentation of meeting: GDSS help for effective documentation of meetings

6.

which are used for further discussion and use.

Setting priorities and making decisions: GDSS help to set the priorities and give
importance to those problems which are more critical.

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