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CHAPTER 1 MANAGEMENT SUPPORT SYSTEMS: QUESTIONS FOR REVIEW 1. What caused the latest revolution in management use of computers? List at least two causes. The increase in the use of computers by managers stemmed from the availability of personal computers and the introduction of easy-to-use software. 2. What is a computer-based information system (CBIS)? Computer-Based Information Systems (CBIS) include Transaction Processing Systems (TPS), Management Information Systems (MIS), Office Automation (OA) Systems, Decision Support Systems (DSS), and Expert Systems (ES). 3. List and define the three phases of the decision-making process (according to H. Simon). Simon's three phases of the decision-making process are: intelligence, where conditions that call for decisions are identified; design, where possible courses of action are invented, developed, and analyzed; and choice, where a course of action is selected. 4. Define DSS. Decision Support Systems are computer-based information systems that use data and models to support non-structured decisions made by managers. 5. Discuss the major characteristics of DSS. There are four major characteristics of DSS. These are: 1) it uses data and models 2) it is used to assist managers when they solve semi-structured or unstructured problems 3) it is used to support the manager; it does not replace the manager 4) its goal is to support the effectiveness of decisions 6. List five major benefits of DSS. The major benefits provided by DSS include: 1) it may provide solutions for problems that cannot be solved by other methods 2) it performs a thorough, quantitative analysis in a very short time 3) it permits what if analysis quickly and objectively. This allows several different strategies and conditions to be analyzed 4) it exposes the user to new insights and these can be used as learning tools 5) it facilitates communication and improves teamwork 6) it allows increased control and may improve performance 7) it can reduce or eliminate the cost of wrong decisions 8) it provides consistent and objective decisions 9) it frees managers for more important tasks because they are able to perform tasks in less time and with less effort 1
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Chapter 1 Management Support Systems 7. Management is often equated with decision making. Why? Management is equated with decision making because managers continually make decisions that will help the organization achieve its goal. Resources, such as people, capital, and equipment, must be allocated to achieve goals. 8. Discuss the major trends that affect managerial decision making. The major trends that affect managerial decision making involve the changing environment that organizations operate in. Technological advances necessitated change because they result in more alternatives to choose from. The large size of organizations, their complexity, and the growth in competition affect the costs of making errors. Finally, a number of external conditions, such as international markets, political stability, consumerism, and government intervention cause great
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This note was uploaded on 02/17/2010 for the course ACS ACS-3911 taught by Professor Chen during the Spring '10 term at Windsor.

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