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Managing Information & Decision-Making (Decision making, conditions,…
Managing Information &
Decision-Making
Decision Making
reliability, sources & quality of info affects it
use critical thinking to analyse
uses POLC
group decision making
disadvantages
-time consuming, pressure to confirm, minority domination,
grouping is bad, risky shifts,
big group - you can make bigger risks
advantages
more complete information and knowledge, increase acceptance of solution, diverse alternatives, increase legitimacy
Decision making, conditions, styles and errors
Conditions of Decision Making
a manager is certain about the outcome of all decisions thus they can make the right one
they can estimate the likelihood of the risk that they face
linear/non linear thinking
Linear- focuses on facts, data, research and uses a logical approach. best decision to make under the limitations they face
Non linear, managers here are less rational and may involve more emotions into their decision making process
uses more internal sources
ERRORS- overconfidence, self perception , randomness, not systematic, self serving,
Managerial problems
Structured problems
easily defined
Programmed decisions
Handled by a routine approach
Un-structured problems
new or unusual
non- programmed decision
Methods of decision-making
Rationality
maximises value
consistent choices
makes certain assumptions:
problem and preferences are clear
not time or cost limitations
one goal to achieve
Bounded rationality
tries to make decisions that are good enough under the restrictions placed on them
Intuition
from personal experience
"gut-feeling"
accumulated judgement
A framework for improving decisions
intervention
inventory
indentification
institutionalisation