Decision Making in Management

by Rakesh
(Jodhpur)

How do you implement decision making in management?


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Nov 20, 2009
 Management Decision Making
by: Dee Reavis

Management decision making is not a lot different than in any other area of business. The biggest difference is the potentially large impact on the company bottom line. Mistakes can be disastrous and good decisions can propel a company to new heights.

The keys for decision making in management is to collect as much data as possible. A manager must have good information in order to understand exactly what decision he is really making.

Secondly, he or she must examine all the alternatives for making the decision.

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Accounting For Decision Making

by Paul Moses
(Durban, South Africa)

The following information relates to two projects, project Alpha and Project Beta, from which one must be chosen by Pacific construction Ltd.


After-tax Cash Flows
Year Alpha	 Omega
1        0       36000
2    18500       36000
3    36200       36000
4   123000       36000

Both projects require an initial investment of R118000. The cost of capital is 12%
As the project manager of Pacific Construction Ltd you are required to:
2.1 Calculate the Net Present Value (NPV) for both projects
2.2 Which project should be chosen? Why?

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Nov 05, 2009
 The Answer
by: Anonymous

When you put the 2 scenarios into the NPV-Calculator, your get the following results:

NPV Alpha $610.
NPV Beta $-7,728

Project Alpha wins because it has a positive NPV as well as a higher NPV than project Beta.

Dee Reavis

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What Is A Decision Support System?

by Ramalingam
(London)

What is a DSS?

Answer

Here is a quote from a government website:

"A Decision Support System (DSS) can be defined in many ways. The working definition the Upper Midwest Environmental Sciences Center (UMESC) uses is, "A spatially based computer application or data that assists a researcher or manager in making decisions." This is quite a broad definition and it needs to be, as the possibilities for types of DSS are limited only by the user group and the developer's imagination. There is no one DSS; they are as diverse as the problems they help solve. This diversity requires that DSSs are built in a variety of ways using the most appropriate methods and tools for the individual application. The skills of potential DSS users vary widely as well, further necessitating multiple approaches to DSS development. Some small, highly trained user groups may want a powerful modeling tool with extensive functionality at the expense of ease of use. Other user groups less familiar with geographic information system (GIS) and spatial data may want an extremely easy to use application for a wide public or otherwise nontechnical audience. The UMESC DSS developers offer our partners a wide variety of technical skills and development options, ranging from the most simple Web page or small application to complex modeling application development."


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