What is Simon’s framework for decision making? How does it help in MIS design?
Simon’s framework has broken down the process of decision making into three stages:
- Intelligence: This is the stage in which the decision maker recognizes that there is a problem or opportunity that requires him to make a decision.
- Design: The decision-maker determines the alternatives that are available to him to resolve the problem or-exploit the opportunity.
- Choice: An alternative generated in stage 2 is singled out to be pursued. The selection process may involve feasibility analysis or cost-benefit analysis.
Accordingly we can distinguish between three major classes of decisions:
Programmed Decisions are there in which all stages are handled by following a preset well-defined procedure. The decisions are repetitive and routine which arise often and are capable of being modeled mathematically in their entirety The classic example would be inventory-ordering decisions.
Non-programmed decisions are difficult to structure in logical-mathematical terms. These decisions cannot be handled in well-defined and pre-specified procedures. There opportunities are not repetitive in nature and they require fresh intelligence, design and choice phases to be executed.
Semi-programmed decisions are those in which at least one and no more than two of the above stages can be handled by well-defined preset procedures. An example where the intelligence phase is well structured would be the diverse kinds of variance analysis. A comparison with a budget or standard is undertaken in a well-defined way to signal the need for a decision.