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Managing Information & Decision-Making (Conditions, Styles, Errors…
Managing Information &
Decision-Making
L01: POLC
managing and decision-making
factors:
sources
quality
reliability
sources
ability:
critical thinking
analysis
reflection
data driven
consider inclusiveness of data
use data for productive purpose
daily decision making
LO2: Decisions
methods of managerial decisions
rationality
choices that are consistent and value-maximising
maximise economic benefit
assumes:
problem is clear and unambiguous
single, well defined goal
preferences are clear
final choice will maximise payoff
bounded rationality
captures essential features of problems
bounded by limitations and restraints
satisficing
intuition
previous experience
'gut level feeling'
accumulated judgement
Managerial problems
Stuctured
Programmed decisions
Policies
Rules
Procedures
Easily defined
Un structured
Non-programed decisions
Needs custom approach
New or unusual problem
Group Decision
Disadvantages
Time consuming
Minority domination
Pressure to conform
Ambiguous responsibility
Advantages
More complete information
more complete knowledge
Increased acceptance of solution
Increased legitimacy
Conditions, Styles, Errors
Condtions
Certainty
Can make accurate decision
Outcome of every alternative known
Risk
Can estimate likelihood of certain outcomes
Uncertainty
No certainty
No reasonable probability estimates
Errors
Hindsight
Overconfidence
Self-serving
Availability
Styles
Linear
External data and facts
Logical thinking
Rational
non-linear
Uses internal data
intuition
feelings
insights
hunches