Decision Making in Rural Tourism Management: The Case of Algarve

Decision Making in Rural Tourism Management: The Case of Algarve

Ana Pego (Universidade Nova de Lisboa, Portugal) and Maria do Rosário Matos Bernardo (Universidade Aberta, Portugal & Universidade de Lisboa, Portugal)
DOI: 10.4018/978-1-5225-3525-6.ch012


Decision making is an important role performed by managers. This chapter will analyze the importance of information systems (IS) on the decision-making process at rural organizations in Portugal's Algarve region. Managers' perceptions were analyzed and compared with the decision-making process model proposed in this chapter, which was based on the models of Simon (1977) and Mintzberg, Raisinghani, and Theorêt (1976). This chapter will discuss the capacity of rural tourism organizations to solve problems, as well as review the time needed to solve problems through the use of IS. This chapter will conclude that IS in the organizational decision-making process is positively related to the identification of the decision-making problem and time needed to solve the problems. This investigation will allow other sectors the opportunity to discuss decision process models based on technology, information capability, and organizational competitiveness.
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The Decision-Making Process

Managers play an important role in the decision-making process as they solve problems by selecting the best alternatives from a set of solutions. Decision making is often associated with the moment of choice of an alternative among several alternatives available. It is part of a process made up of several interconnected and interdependent steps implying the realization of a set of activities (Harrison, 1995; Mintzberg et al., 1976; Simon 1977).

This study adopts a combination of two models of decision making:

Key Terms in this Chapter

Business Intelligence (BI): Systems to solve problems and support the decision-making process. BI applications and technologies collect and analyze data to help users make the best possible decision. Examples include: data warehouse, OLAP, and data mining.

Rural Tourism: A tourism activity developed in rural or natural areas.

Strategy: Reaching management goals in short, medium, or long runs. Organizations position themselves in their market to achieve goals and objectives.

Information and Communication Technology (ICT): Digital devices and technologies that enable users to access, store, transmit, and manipulate information. Examples include: Internet, cellular telephones, computers, and digital television.

Client/Consumer Relationship Management (CRM): Information system consisting of a real-time relationship between the client and the organization.

Management Decision: Organizational objective decisions practiced by mangers.

Destination Management Services: An information system that provides tourism information (not in real time).

Systems Development Methodology: A standard process within an organization to analyze, design, implements, and maintain information systems for improved management performance.

Decision Support System (DSS): As a support to decision management, data is transformed in information toward decision making.

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