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Managing & Decision Making (Conditions and Errors (Errors (Self…
Managing & Decision Making
Critical Thinking
Execution of POLC
Big Data
Decisions are more data driven
How To Arrive at Decisions
Rationality
Assumed to be rationa
Consistant with value maximisation
maximise economic benefit
clear an unabiguous
helps achieve goals
consequuences are known
No time costs or contraints
Maxinmise payoff with final decision
Bounded rationality
Good enough approach
Decisions made within parameter
Bounded by limitations and constraints
Intuition
Relying on others for help
Previous exp
Gut level
Accumulated judgement
not void of rationality
Critical to making decisions
Managerial Problems
Unstructured
Unusual
unforseen
Non-programed decisions needed
Custom approach
One-off solutions
Structured
Easily defined
Routine Approach
Procedure
Rule
Policy
Anticipation of problems which happen on day to day
Group decision making
Advantages
More complete info and knowledge
Increase diversity
Increases acceptance of solution
Increases legitimacy
Reduce Workload
Disadvantages
Time consuming
minority domination
Peer pressure
Ambiguous responsibility
Conditions and Errors
Certainty
Every alternative is known
Risk
Ability to estimate likelihood of certain outcomes occuring
Uncertainty
Not every alternative is known
Styles
Linear
use existing external data and facts
Information is processed through logical thinking
Rational and bound rational
Non-Linear
Internal sources of information
internal insights, feelings and hunches
intuitional management styles
have been equally or more successful than Linear
Errors
Self-serving
Immediate Clarification
Anchoring Effect
Hindsight
Selective Perception
Over confidence
Availability