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Managing information & Decision making (L04 - Group decision making…
Managing information & Decision making
L04 - Group decision making
Steve Jobs:
No, you see you can’t. If you want to hire great people and have them stay working for you, you have to let them make a lot of decisions and you have to, you have to be run by ideas, not hierarchy. The best ideas have to win, otherwise good people don’t stay.
Pros
More complete knowledge graph
Diversity of thought
Less controversial when solution is chosen
'Legitimate'
Cons
Potential for over representation of minority views
Time consuming
Group dynamics and pressure to conform play a party
Lack of clear responsibility
L05 - Decision-making conditions, styles and errors
Conditions
Certainty - all outcomes known
Risk - reasonable estimations
Uncertainty - no certainty nor is it possible for reliable estimations
Styles
Linear
Rational, logical, external data and 'facts'
Nonlinear
Internal, uses feeling and intuition
Errors
How do Managers arrive at decisions
BOUNDED RATIONALITY
Decision made within the parameters of a simplified model that captures the essential features of a problem
contained by time, skills, resources, info
"good enough"
bounded by limitations
INTUITION
subjective
previous experience, 'gut-level feeling' and accumulated judgement
trust your intuition as well as others around you
RATIONALITY
Theoretical- not that realistic
describes choices that are consistent and value maximising (Maximise outcome for org, best interest of org)
Managerial decision making is assumed to be rational
Rationality assumes:
The problem is clear and unambiguous
A single, well defined goal is to be achieved
all alternatives and consequences are known
preferences are clear, constant and stable
no time constraints
final choice will maximise pay off
objective
LO3-Types of problems and decisions
well structured--> programmed decisions
familiar, straightforward e.g A customer wants to return a purchase
lower level managers
on a daly basis
unstructured-->non-programmed decisions
unique, unexpected
need of custom approach
LO1-Information and decision making
sources, quality abd reliability may vary
the need for critical thinking, analysis and reflection
may also need to consider the inclusiveness of data--> safe and cannot be hacked
