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Managing information & decision making (Managing and decision-making,…
Managing information & decision making
Managing and decision-making
decision-making influenced by source,quality and reliability of information
ability to engage in critical thinking, analysis, and reflection determine how well one makes decisions based on available information
the execution of the managerial functions of POLC results in decision-making, often daily
big data and its associated analytics changing contemporary debates and arguments around decision-making
method of managerial decision-making
rationality
rational decisions describe choices that are consistent and value-maximizing
assumption
problem is clear and unambiguous
single and well-defined goal
all alternatives and consequences are known
preferences are constant and stable
preferences are clear
no time or cost constraints exist
final choice will maximize payoff
bounded rationality
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
Intuition
a product of
gut-level feeling
accumulated judgement
previous experience
Managerial problems, decision & group decision making
Types of problems and decisions
well structured problems and programmed decisions
structured problems are easily defined, programmed decisions are those handled by a routine approach
un-structured problems and non-programmed decisions
un-structured problems are new or unusual, non-programmed decisions need a custom approach
pros and cons of group decision-making
Ad
more complete information&knowledge
more diverse alternatives
increases acceptance of a solution
increase legitimacy
dis
time consuming
minority domination
pressure to conform
ambiguous responsibility
Decision making conditions, styles and errors
Conditions
certainty
a manager can make accurate decisions because the outcome of every alternative is known
risk
a manager can estimate the likelihood of certain outcomes
uncertainty
a manager has neither certainty nor reasonable probability estimates
decision-making styles
linear
preference for using external data and facts
process information through rational, logical thinking
non-linear
preference for internal sources of information
process information through internal insights, feeling, and hunches