W-224
ONLINE FILE W12.4
DECISION SUPPORT FRAMEWORK
Technology is used to support the decisions shown in the column at the far right and
in the bottom row. The right-hand column and the bottom row indicate technologies
needed to support the various decisions. Gorry and Scott-Morton (1971) suggested,
for example, that for the semistructured and unstructured decisions, conventional
MIS and management science approaches are insufficient. Therefore, they proposed
the use of a DSS.
Low-level managers usually perform the structured and operational controloriented tasks (cells 1, 2, and 4), whereas tasks in cells 6, 8, and 9 are mainly the
responsibility of top executives. Cells 3, 5, and 7 are usually the responsibility of middle managers and/or professional staff. This means that DSS, ESS, expert systems,
and neural networks are often applicable for top executives and professionals tackling specialized, complex problems.
Nature of Decision
Type of Decision
Operational
Control
Structured
Accounts receivable,
order entry
Semistructured
Production
scheduling,
inventory control
Unstructured
Selecting a cover
for a magazine,
buying software,
approving loans
Support Needed
MIS,
management science
Management
Control
1
4
7
Budget analysis,
short-term forecasting,
personnel reports,
make-or-buy analysis
Credit evaluation,
budget preparation,
plant layout,
project scheduling,
reward systems design
Negotiating,
recruiting an executive,
buying hardware,
lobbying
Management
science, DSS, EIS, ES
Strategic
Planning
2
5
8
Financial
management
(investment),
warehouse location,
distribution systems
Support
Needed
3
6
Building new plant,
mergers and acquisitions,
new product planning,
compensation planning,
quality assurance
planning
R & D planning,
new technology
development,
social responsibility
planning
9
MIS, management
science models,
financial and
statistical models
DSS
DSS
ES
neural networks
EIS, ES,
neural networks
Figure W12.4.1 Decision support framework. Technology is used to support the decisions shown in the
column at the far right and in the bottom row.
Reference for Online File W12.4
Gorry, G. A., and M. S. Scott-Morton, “A Framework for Management Information Systems,” Sloan Management Review, 13(1),
Fall 1971.