Information’s role in decision-making:
Information is critical in decision-making. We require information even to make simple decisions. To comprehend the role of information in decision-making, we must first comprehend how decisions are made. Decision-making is essentially a process that consists of the following stages:
- Problem/opportunity identification and structuring: Information is required to identify a problem and structure it. The decision-making process does not even begin in the absence of information about a problem or an opportunity.
- Putting the problem/opportunity in context: Without knowing the context in which the problem occurred, it is impossible to make a decision. In some ways, the context information defines the problem.
- Alternatives generation: Information is a critical component in the generation of decision-making alternatives. To generate alternatives, one must have knowledge of potential solutions.
- Alternative selection: Using the information about the suitability of the alternatives, a decision is made to select the best alternative.
The most important task of managers in an organization is decision-making. As a result, it is critical to provide managers with accurate information in order for them to make sound decisions. As a result, information management in organizations takes on added significance. For information management, most organizations, business or otherwise, use a systematic systems-based approach. Systems-based information management works best in a computerized environment, and such a computerized information management system is commonly referred to as a ‘Management Information Systems (MIS),’ which provides the service of information supply to managers, allowing them to make informed decisions. It is worth noting here that MIS does not require the use of computer-based technology; however, the use of computers and information technology makes MIS suitable for business organizations in a competitive environment because it aids in the provision of timely and accurate information. Manual MIS performed without the assistance of computers is neither timely nor accurate.