Analyzing the Effectiveness of Corporate Management Decision Making Using Information Entropy and Information Gain Ratio

Abstract

The information industry has increasingly become the dominant modern economy, and the introduction of informationization into enterprise management has become one of the necessary means for enterprises in various countries to improve their competitiveness and enhance their vitality. This paper is dedicated to studying the impact of information entropy and information gain ratio on enterprise management decision-making, which further confirms the necessity of modern enterprise management to implement informationization. This paper defines the relationship between information entropy and information gain ratio in enterprise management and establishes a comprehensive evaluation model that matches the two. The objective of indicator assignment improvement is improved by using weight determination based on information entropy to solve the issue of weighting between different indicators of two layers. According to the advantage that the information gain ratio can reflect the information orientation, the expert’s primary viewpoint assignment in the traditional enterprise management decision-making is replaced by the ratio of the information gain ratio of the sorted neighboring indicators to obtain the weights of each evaluation indicator. Taking enterprise Y as the research object to carry out empirical analysis, the entropy weight value of “consistency with the planned target” is 0.8599, which is an essential factor affecting the enterprise management decision. It can fully reflect the information orientation of the data itself and the subjective will of the experts or decision makers, which not only overcomes the shortcomings of the existing assignment methods that cannot objectively reflect the information orientation of the number or the subjective will of the experts or decision makers but also avoids the drawbacks of the existing combination assignment methods that cannot reasonably allocate the combination coefficients.

Keywords

• information entropy
• entropy weight method
• information gain ratio
• enterprise management decision-making
• 97p10