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Managing Information and Decision Making (Managing and decision making…
Managing Information and Decision Making
Managing and decision making
Influenced by sources quality and reliability of information
Required critical thinking analysis and reflection, oral reports, doing marketing might be biased . You need to be able to filter through bias. Decision is based on solid reasoning and decision making. If someone challeges you you have solid information rather than personal gain.
POLC
Big data is used
Management need to use data to make decisions, must take into account to privacy
Decision
Rationality
Managerial decision making is assumed to be rational
It is not bounded in reality
Consistent and value maximisin
Maximise economic benefits for the organisation
Intuition
Example is Steve Job
On reflection steve job realised he did not rellie only on his intuition but also of those of others.
INTUITION
This involves Previous Experience, Gut Level Feeling and Accumulated Judgement
Bounded rationality
Bounded in limitations and constraints managers attempt to behave relationally
Good enough decision-satisficing (not the best decision)
Mainly found in most organisations
MANAGERIAL PROBLEMS AND DECISIONS
Structure problems and programmed decisions
structured problems are easily defined
These are problems day to day problems for example at Monash students Appling for special consideration
In a restaurant a customer complaints about the meal
Programmed decisions are those handled by a routine approach
un-structured problems and non-programmed decisions
These are problems that you don't anticipate or unusual in an organisation
Use a non program to provide a solution for this kind of problem ie tsunami in 1994 as it not a common problem
GROUP DECISION MAKING
Collaborative decision - making
using the talent of other people to make decision this is in an organic organisation. This is about focusing about the idea and not the people or who came up with the idea, not is hierarchy important
ADVANTAGES OF GROUP DECISION MAKING
complete information and knowledge ie marketing department, hr , accounting department etc
More diverse alternative might have 5 or 6 alternatives
Increased acceptance of a solution
Increased legitimacy, people feel part of the process so easily accepted
DISADVANTAGE
Time consuming, because your listening about different perspective.
Minority domination, some groups might be 5 individual there is 3 majority then the minority based on ethnicity or gender can influence this
Pressure to conform. People care what their colleges think
Ambiguous responsibility who exactly is responsibility is it an individual responsibility, is it a group is individual or collective responsibility delineated within an organisation
DECSION MAKING CONDITIONS AND ERRORS
CERTAINTY
A manager can make accurate decisions because the outcome iof every alternative is known.This is the conditions of certainty
RISK
Don't know what the outcome is manager can estimate the likelihood of certain outcomes
Uncertainty
A manager has neither certainty nor reasonable probability estimates, to avoid this you need a wide range of information, and others with diverse information. You need to know the conditions.
DECISION MAKING STYLES
LINEAR
Preference for using external data and facts
Process information through rational, logical thinking
NON LINEA
This closes to using intuition, using information within themselves(internal sources of information)
Process information through internal insights feeling and hunches, need to use based on the situation. Good leaders are both linear and non- linear thinking needs to be wholistic
MISTAKES
Overconfidence especially those who are highly skilled
Managers tend to take all the successes and blame others for failures
Selfish looking, make decisions based on self other than organisaton
Hind sight, use past experience to learn from mistakes