Page 75 - Using MIS

Q3 What Are the Four Primary Purposes of Collaboration? 43

produce a work product for the decision, evaluate that product, and make revisions in an itera-
tive fashion—the essence of collaboration.

Strategic Decisions

Strategic decisions are those that support broad-scope, organizational issues. Typical deci-
sions at the strategic level are: Should we start a new product line? Should we open a centralized
warehouse in Tennessee? Should we acquire company A?
Strategic decisions are almost always collaborative. Consider a decision about whether to
move manufacturing operations to China. This decision affects every employee in the organiza-
tion, the organization’s suppliers, its customers, and its shareholders. Many factors and many
perspectives on each of those factors must be considered.

The Decision Process
Information systems can be classified based on whether their decision processes are structured
or unstructured. These terms refer to the method or process by which the decision is to be made,
not to the nature of the underlying problem. A structured decision process is one for which
there is an understood and accepted method for making the decision. A formula for comput-
ing the reorder quantity of an item in inventory is an example of a structured decision process.
A standard method for allocating furniture and equipment to employees is another structured
decision process. Structured decisions seldom require collaboration.
An unstructured decision process is one for which there is no agreed-on decision-making
method. Predicting the future direction of the economy or the stock market is a classic example.
The prediction method varies from person to person; it is neither standardized nor broadly ac-
cepted. Another example of an unstructured decision process is assessing how well suited an
employee is for performing a particular job. Managers vary in the manner in which they make
such assessments. Unstructured decisions are often collaborative.

The Relationship Between Decision Type and Decision Process

The decision type and decision process are loosely related. Decisions at the operational level
tend to be structured, and decisions at the strategic level tend to be unstructured. Managerial
decisions tend to be both structured and unstructured.
We use the words tend to be because there are exceptions to the relationship. Some op-
erational decisions are unstructured (e.g., “How many taxicab drivers do we need on the night
before the homecoming game?”), and some strategic decisions can be structured (e.g., “How
should we assign sales quotas for a new product?”). In general, however, the relationship holds.

Decision Making and Collaboration Systems
As stated, few structured decisions involve collaboration. Deciding, for example, how much of
product A to order from vendor B does not require the feedback and iteration among members
that typify collaboration. Although the process of generating the order might require the coor-
dinated work of people in purchasing, accounting, and manufacturing, there is seldom a need
for one person to comment on someone else’s work. In fact, involving collaboration in routine,
structured decisions is expensive, wasteful, and frustrating. “Do we have to have a meeting
about everything?” is a common lament.
The situation is different for unstructured decisions because feedback and iteration are
crucial. Members bring different ideas and perspectives about what is to be decided, how
the decision will be reached, what criteria are important, and how decision alternatives score
against those criteria. The group may make tentative conclusions and discuss potential out-
comes of those conclusions, and members will often revise their positions. Figure 2-3 illus-
trates the change in the need for collaboration as decision processes become less structured.