The Significance of Involving DSS and GDSS in Reinforcing Effective Business Management - Coursework Example

MANAGING DECISION MAKING: THE SIGNIFICANCE OF INVOLVING DSS AND GDSS IN REINFORCING EFFECTIVE BUSINESS MANAGEMENT By Student’s Name Course Title Name of Instructor University Affiliation State Date Executive Summary Business organizations have recognized the need for managing decision making in their operations in the recent years. The decision-making process plays a critical in the planning and coordinating process that enables a business to achieve its goals and objectives. The adoption of the Decision Support Systems and the Group Decision Support Systems have brought a tremendous impact on the management of the decision-making process. The technological advancements have led to the integration of both the DSS and the GDSS into the management information system. This measure has also enhanced the process of solving spreadsheets tasks. There are several types of DSS, for example, the document-driven, communication-driven, and knowledge-driven decision support systems. All these subdivisions of DSS creates an enabling environment for the integration of technology in decision making. The major types of GDSS include the Delphi Approach and the Group Consensus Approach. Both approaches have enhanced the relationships among the teams. Moreover, GDSS has boosted the decision making process and also ensured efficient management reporting. The DSS has improved control of a business since it shapes the decisions that are made within the business. The end user computing has also enhanced the decision making process among business organizations. Introduction The advancement Information Technological infrastructure has led to the development of the DSS and the GDSS. These vital decision-making support systems have shaped the operations of the business organization leading to effective business management. The adoption of the decision support systems has created an enabling environment for the making of insightful decisions in the firm. The decision support systems boost teamwork within an organization and also makes communication efficient. The application of technology has also enhanced the decision-making process since through the creation of supportive systems within the business framework. The report examines the benefits of reinforcing the DSS and the GDSS in effective business management. Through creating a sustainable environment in the company, the development of the DSS and the GDSS has enhanced the process of managing modern business organizations. Discussion The functions and types of DSS and GDSS Decision Support System refers to the system of managing decision making by an individual. The system thus enables an individual to develop the skill of decision making using the technological infrastructure. The DSS thus facilitates the collection of viable data that can be used to enhance the decision-making process (Gallupe & McKeen 1990, p.11). The Group Decision Support System, on the other hand, refers to the method of managing decision making through collaboration. Various individuals within an organization, such as employees come together and work as a team towards making decisions that can improve the operations of the business. Different types of DSS have been applied in the firm (Courtney 2001, p. 23). The types include model-driven DSS, knowledge-driven, communication-driven and document-driven DSS. The model-driven DSS is used to solve quantitative problems while the communication-driven DSS is used to handle communication-related issues during the decision-making process. The types of GDSS include the Delphi Approach and the Group Consensus Approach. The Delphi Approach is a structured decision making technique in which selected experts fill questionnaires in order to develop an agreement. The technique is efficient since the decision is reached by a structured group that has a moderator. The Group Consensus Approach on the other hand refers to a decision making technique in which a group seeks an agreement through collaboration, participation and cooperation. The decision must serve the interest of the whole group and not just a few individuals. The difference of these two aspects of the GDSS is the nature of developing a decision. The Delphi Approach uses a structured team of experts while the Group consensus uses the whole group to develop an agreement through collaboration. Both has shaped the process of data management in the contemporary business organizations. Application in business and effect on business management The DSS and GDSS can be applied in various departments of the firm. Both the decision-making support system can clarify the structure of a problem thus makes it easier to interpret during the decision-making process. The support systems can also be used to create different sizes of decision models. This thus improves the decision-making process leading to enhanced management. The DSS and GDSS moreover can be used to build accurate analysis and the evaluation of the whole decision-making process (Jessup & Tansik 1991, p.271). The application of the two-decision support system has also boosted communication within the organization and also prevent unnecessary time wastage during the decision making process. Through enhanced communication within the business, the employees can collaborate and develop viable ideas that can be used to achieve the set goals and objectives. Moreover, the decision-making process can be enhanced through the application of the document-driven DSS. This type of DSS can be used to analyze several documents and also to undertake the documentation process. According to Karmakar et al. (2007, p.194), the knowledge-driven DSS can be used to acquire knowledge that is critical for the process of decision making within the organization. However, the data-driven DSS can be used to analyze large quantities of data within a program. The managers of an organization can adopt the data-driven DSS in case several datasets need to be analyzed and evaluated in regards to data retrieval. The model-driven DSS, on the other hand, deals with the quantitative and financial problems within the organization. The program can easily handle the financial calculations and forecasting. Communication plays a central role in business. Therefore, to achieve effective flow of communication within the company, the managers can adopt the communication-driven DSS (Wolfe & Chanin 1993, p.42). Moreover, the communication-driven DSS can also be integrated with the GDSS since it plays a crucial role in a team where collaboration is essential. The application of the Delphi Approach is important since it enables the working teams to achieve motivation. Motivation helps in building rapport among the teams hence resulting in an improved decision-making process. In the case where the teams want to share ideologies and develop a concrete decision concerning the business, the best approach to use is the group consensus approach. This technique enables the working teams to collaborate in identifying the most viable choice that can be used to enhance the operations of the business. Both the DSS and the GDSS is necessary for several divisions of the company (Nowduri 2011, p.45). For example, the production, marketing, and finance department can apply the techniques so as to develop a long-term decision-making framework. The application of the DSS and the GDSS can, therefore, be used to boost the management of business among the modern multinational business organizations. Advantages and disadvantages of DSS and GDSS in business The increasing need for the adoption of decision support systems and the group decision support systems has led to the analysis of the benefits and the limitations of the systems in the decision-making process. The application of DSS and the GDSS, however, has elicited different reactions among the developers and the computer end users (Berenson et al. 2006). This is because the use of the decision support systems has either affected decision making negatively and positively. Advantages of Decision Support System (DSS) Advantages Disadvantages Enhances the skills in communication The application of the Decision Support Systems boosts the interaction and exchange of information among the decision makers. The DSS thus enables the decision-making process to utilize proper communication skills with the aim of improving the business management. High implementation cost It is very expensive to develop and implement the DSS since it involves the integration of computer information systems. The advancement of technology has made the adoption of new technological infrastructure to become very expensive for small and medium-size businesses (Hedgebeth 2007, p.418). Moreover, it is very costly to train employees to efficiently operate the DSS and apply in the day to day operations of contemporary business organizations. Saves time during decision making The DSS is a system that supports decision making hence it prevent time consumption through helping in the analysis of data using the computer systems. This then makes the decision-making process faster and more efficient. Higher chances of making a wrong decision Due to the presence of significant amount of data, there is a likelihood of the decision makers adopting a decision that can hinder the operations of the business. According to Herrera-Viedma et al. (2005, p.651), the overload of information can thus misguide the decision makers thus having a devastating impact on the management process of the firm. Facilitates the reporting of concise data The adoption of the DSS enables the managers of business organizations to report accurate and concise data (Doll, Xia, & Torkzadeh 1994, p.456). The various divisions within the company can, therefore, use the actual data to make real decisions that boost the management in the organization. Overreliance on DSS to make decisions Although the adoption of the DSS is crucial for the performance of the business, over-relying on it can limit the cognitive ability of the workers. Instead of using creativity to develop and share ideas, the managers can just rely on the DSS and use the computer information systems in making crucial decisions that affect the organization. This scenario may result in the inability to make decisions when the computer information systems fail. Improves control within the business The DSS can shape the decisions that are made in the firm. Through the integration of the DSS and the spreadsheet programs, the organization can acquire real-time data that can be used to manage the operations effectively and achieve the goals and objectives (Freer, Moore, & Donnelly 1997, p. 88). The acquisition and analysis of crucial data can thus assist in the coordination of operations hence leading to the control of the business. Over-reliance on the decision-making process The business organization may only focus on how to develop ideas using the decision support system without recognizing other important aspects of business management. Although the application of the DSS is vital in managing a business, the managers need to identify and evaluate other important aspects of business management. Advantages and disadvantages of the Group Decision Support Systems (GDSS) Unlike the DSS, the GDSS is used through a collaborative effort among working teams. The system helps in the decision-making process within an organization. The group members are thus able to interact and develop ideas that are crucial to the decision-making process (Harrison & Reiner 1992, p. 102). Several advantages and limitations have been experienced because of the use of the GDSS in computer information systems. Advantages Disadvantages Enhances the decision-making process GDSS is critical in the decision-making process since it involves the collaborative effort. The presence of many participants can elicit diverse opinions that can be used to manage the business effectively. The discussions by the working teams present a chance of developing goal-oriented decisions. Hinders effective communication One feature about GDSS is that it results in slow communication within the organization. This is because all the members of the teams must participate in the decision-making process. The opinions and ideas of the members are used in selecting the most appropriate decision. This can take a lot of time that may derail the activities in the business. The presence of working groups, therefore, has a negative impact on the process of making decisions. Results to efficient management reporting The Group decision support systems boost the level of management reporting since the teams can select the best decisions that can have a significant impact on the administration of the business. Unlike the DSS derived decisions individually, the GDSS uses a group to develop ideas (Igbaria 1992, p.647). The managers can, therefore, acquire accurate and insightful decisions that are used to achieve the goals and objectives of the business. Inability to embrace changes Change is necessary for the operation of a business organization. However, the presence of teams can hinder the adoption of change or reforms since people have different opinions. Some members of the team may refuse to embrace a new ideology hence making the whole group to shun the particular ideology. Moreover, the technological systems are always changing hence requiring a change of the decisions. However, the managers may be hesitant to adopt a new technology due to the difficulty in the implementation process. Boost the relationship among the teams Through collaboration, the managers can interact frequently and develop a rapport with one another. This helps in solving common departmental problems that may arise within the organization. When the teams meet during the decision-making process, their socialization results in the creation of bonds that unite them together and enhances the ability to come up with concrete decisions. Presence of conflicting ideas Since a group of managers undertakes GDSS, it is likely to be affected by the conflicting ideas presented by different people in the group. During the decision-making process, some members may have different views and opinions concerning the management of the business (Khodashahri & Sarabi 2013, p.23). Failure to agree will thus set back the process of managing the business. Goal-oriented structure Unlike the DSS technique, the GDSS has a structure that is focused on achieving the goal of efficient management of the business. The groups are encouraged to value the decisions of each and every one before choosing the best decision for the organization. The structure of the GDSS is, therefore, important in the integration of the system into the computerized informational systems. Time consuming Another disadvantage of GDSS is the tendency to consume time. The whole process of developing ideas in a group takes time since arguments and debates will characterize it. Unlike the DSS that does not involve a group of people, GDSS system is only fully implemented after the team members have come to the agreement on a single decision. This situation can hinder the operations of the business, especially in a case that there are competitors of the firm. The Development Issues of DSS and GDSS with a focus on spreadsheet development The presence of developmental issues can have a tremendous impact on the functionality of the DSS and the GDSS. This is because the occurrence of a developmental problem can result in the acquisition and usage of inaccurate data and also the making of wrong decisions. All these scenarios can hinder effective management of business activities (Marakas 2003). Since the GDSS and the DSS aim at boosting the level of decision making in an organization, there is an increasing need to manage the development issues that may occur within the business. The development of a decision support system is thus helpful in solving such developmental issues. According to Premkumar et al. (1994, p. 177), one important step to take when one wants to reduce the developmental problems in creating a DSS is adequate planning. Through planning, a developer can organize the DSS and make it easier to understand by the end users. However, in a case that the manager is using spreadsheets in DSS, there it is important to enter various kinds of data after first performing sketches on the spreadsheets. This measure ensures that the data is entered accurately and can be easily read by the end users. The developer should also avoid over-developing the spreadsheet models. One of the methods that can be used to prevent the occurrence of over-developing the spreadsheet models is to involve the end-users in the process of developing the DSS system (Muhanna 1993, p.220). The end-users should be allowed to analyze the data entered in the spreadsheet and also change the data depending on their preferences and taste. Through customizing the data, the ease of use of the program increases tremendously. Such measures can boost decision-making process that eventually improves the management of the business in the long term. There is also the need to make assumptions concerning the computer information systems. The assumptions are critical in enhancing the usability of the DSS. The developers, however, should ensure that the end users clearly understand the assumptions that have been made in the system. This measure can help in preventing confusion among the end users as they interact with the DSS. The presence of errors also plays a critical role in the development of the GDSS and the DSS. Errors can originate from the entering of inaccurate data or even the relationship variables. The developers should ensure that they enter the data in each cell within the spreadsheet program (Salewicz & Nakayama 2008, p.31). Each data should have its cell so as to prevent the occurrence of an error in the computer system. Moreover, the process of validation, if undertaken, can assist in the identification the possible errors within the spreadsheet program. According to Sosik, Avolio, & Kahai (1997, p. 89), DSS can be used to analyze several documents and also to undertake the documentation process. The knowledge-oriented support system can be used to acquire knowledge that is critical for the process of decision making within the organization. Although there are developmental issues during the development of the DSS and the GDSS, the adoption of effective strategies can help in preventing such developmental issues. All stakeholders such as the business organizations, the developers, and the end-users should collaborate to control the developmental issues to ensure the usage of high-quality GDSS and DSS in the decision-making process. Business organizations should incorporate the GDSS and the DSS in the various departments with the aim of improving the operations as well as the achieving the set goals and objectives (Stoltzfus 2017). For example, the GDSS can be used to encourage teamwork within the organization. The technology-based decision-making system can have a positive impact on the business. End user computing and end user development and its relationship to DSS/GDSS One important aspect of the development of decision support systems and the group decision support system is the presence of end users. The end users are the individuals who put the DSS into use through the help of the computer information technologies (Vogel & Nunamaker 1997, p.21). Within a business organization, the DSS and GDSS can be used in the various departments such as finance, marketing, human resource, and administration. In such departments, decision making is critical hence the end users require the end user computing program to adopt viable judgments in the business. Through the integration of the software with the communication infrastructure, the end user computing helps in the dissemination of viable information during the decision-making process. Several factors affect the end user computing. The factors include the computer technology, the presence of problems or issues within the business and the need to meet the demands of the end users. The end users can develop applications that can hence be used to support the decision-making process. The computer based system is necessary in the provision of solutions to the problems that are related to decision making in the business. The end user applications such as spreadsheets play a crucial role in the development of end-user computing (Yam & Tu 2001, p.389). Being a non-dynamic environment, end user development should be treated with care to ensure that both the end users and the software developers benefit from the programs. The software developers should thus develop business oriented spreadsheet applications that can be easily integrated with the end user computing programs. This boost decision making in the firm and also enhance the management of the organization. In the recent years, the usability of the spreadsheet has increased in the business fields. All most all the sections of business such as finance and human resource today use a spreadsheet to store and analyze sensitive data. End users should be allowed to develop their decision support systems (Frolick & Ariyachandra 2006, p.45). This is because the measure can enhance communication between the end users and other stakeholders of the business. Conclusion The adoption of advanced technology has boosted decision making among modern business organizations. Through the integration of computerized information systems and the Decision Support System and the Group Decision Support Systems, organizations have been at the forefront of making important decisions that have also enhanced management reporting. Both the GDSS and the DSS have resulted in making decisions that are guided technological information systems. The Decision Support System has led to improved control in the business since it ensures the adoption of efficient decisions. Moreover, both the DSS and the GDSS has enhanced communication due to the integration of technology in the decision making process. 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