Which of the following describes how the Simon framework of decision-making works in high-velocity decision environments?
All four steps are performed by humans with the support of high-speed, high-volume DSS and ESS.
Only the initial step is performed by the software; the final three steps are handled by humans.
All four steps of the process are handled by software algorithms; humans are eliminated from the decisions because they are too slow.
The first two steps of Simon’s framework are eliminated and the final two steps are handled by software algorithms.
The first three steps of the process are handled by software algorithms and the final step is handled by experienced managers.
The Correct Answer and Explanation is :
The correct answer is: The first three steps of the process are handled by software algorithms and the final step is handled by experienced managers.
Explanation:
The Simon framework of decision-making outlines a structured approach to how decisions are made in organizations, consisting of four key steps: Intelligence, Design, Choice, and Implementation. In high-velocity decision environments, such as those found in industries like finance, technology, or logistics, the speed and volume of data necessitate a different approach to decision-making.
- Intelligence: In this initial step, relevant data is gathered and analyzed. In high-velocity environments, this step is often automated through the use of sophisticated software systems such as Decision Support Systems (DSS) and Executive Support Systems (ESS). These systems can process large amounts of data quickly and efficiently, allowing organizations to identify issues and opportunities in real-time.
- Design: The second step involves developing alternative solutions or courses of action based on the data analyzed. Software algorithms can simulate various scenarios and outcomes, offering potential solutions to decision-makers. This capability allows organizations to explore a wide range of options rapidly, which is crucial in fast-paced environments.
- Choice: In this step, the best alternative is selected. Again, software plays a significant role, using algorithms to evaluate the various options based on predefined criteria. This allows for swift decision-making, which is essential in high-velocity situations where delays can result in missed opportunities or increased risks.
- Implementation: The final step of the process, however, often requires human judgment and oversight. Experienced managers are needed to execute the chosen solution, as they can consider factors beyond what algorithms can analyze, such as organizational culture, stakeholder impact, and ethical considerations.
In summary, while software algorithms handle the first three steps in a high-velocity decision-making environment, the critical final step remains in the hands of human managers who can make nuanced decisions that software alone cannot achieve.