Managing Information & Decision-Making (POLC, information and decision…
Managing Information & Decision-Making
Decision-making conditions, styles and errors
– Preference for using external data
– Process information through rational, logical thinking
– Preference for internal sources of
– Process information through internal insights, feelings, and hunches
Conditions of decision-making
– A manager can make accurate decisions because the outcome of every alternative is known
– A manager can estimate the likelihood of
– A manager has neither certainty nor reasonable probability estimates
Managerial problems and decisions
• Time consuming
• Minority domination
• Pressure to conform
• Ambiguous responsibility
• More complete information & knowledge
• More diverse alternatives
• Increases acceptance of a solution
• Increase legitimacy
Un-structured problems and non-programmed decisions
Well structured problems and programmed decisions
How do managers arrive at decisions?
Previous Experience, “Gut-Level Feeling” and Accumulated Judgment.
Decisions made within the parameters of a simplified model that captures the essential features of a problem
Bounded by the limitations and constraints, managers attempt to behave rationally
“Good enough” decisions – “satisficing”
Managerial decision making is assumed to be rational
Rational decisions describe choices that are
consistent and value-maximising
Rational decisions made by managers “maximise” economic benefit for the organization
POLC, information and decision-making
As organizational decisions increasingly become more data driven, managers need to consider inclusiveness of data (i.e. who uses it) in addition to the use of data for productive purposes.
Ability to engage in critical thinking, analysis, and reflection determines how well one makes decisions based on available information.
Decision-making influenced by sources, quality, and reliability of information.
Managerial functions of planning, organising, leading, and controlling are executed through accessing information and using the same to decide between alternative courses of action.