Decision Making, Decision Levels and Types of Problems - Research Paper Example

System theories such as decision theory (involving studies on how to choose better solutions) and game theory (involving studies on conflict identification and resolution) are useful in organizations today. However, as organizations are governed by complex systems, there are also corresponding approaches that go with these theories. According to Walonick (1993, para. 5), there are two different approaches used in understanding a system or its components, the cross-sectional and developmental approaches.

In the cross-sectional approach, a system is analyzed in relation to other systems while in the developmental approach, a system is analyzed through the changes that it undergoes throughout time. These approaches are used to understand a particular, general system; either in its own context, or in the context of its relations to other systems. Accordingly, these approaches are practiced in various fields in arts (e.g. architecture) and sciences (e.g. medicine, computer studies). General Systems Theory and Approach in Information Technology As system theories and approaches are used to understand the concepts behind a system, these theories and approaches are essential elements in the process of conflict identification and resolution. . Considering this situation, it can also be said that system theories are necessary in the decision-making process of information system creation as those influence the design of the system.

Decision Levels and Types of Problems The decision-making process in creating an information system consists of a combination of complex problems and solution. As mentioned by Skyttner (2005, p. 400), there are three types of problems (structured, semi-structured, and unstructured) and three decision levels (operational, tactical, and strategical) involved in the decision-making process. Additionally Skyttner (2005, p. 400) explains that structured problems refer to problems that can be broken down into different quantifiable elements while semi-structured problems points to problems that are “partly structured and partly unstructured.

Furthermore, unstructured problems refer to problems that do not have clear conventions, which require the evaluative and insightful capacity of decision-makers. Aside from the impact system theories in the identification of the problem structure, those theories are also essential in recognizing the appropriate decision level that should be maintained in conflict resolution process. In the words of Schmidt and Wilhelm (2000, p. 1510), the tactical level in the decision-making process refers to “the material flow of from suppliers to production facilities.

In this process, decision-makers are able to choose the material that should be used in operation as well as where to get those materials. Following the tactical level in the decision-making process is the strategic level wherein decision-makers prescribe the use of specific materials in the production. Thus, strategic level decisions consist of pronouncements regarding production