Managing information & decision-making (POLC, Information and decision…
Managing information & decision-making
POLC, Information and decision making
decision making influenced by
reliability of information
engage in critical thinking, analysis and reflection determined how well one makes decision based on available information.
Managers need to consider inclusiveness of data (who uses it) in addition to the use of data for productive purposes.
Decision-making conditions,styles and errors
-Certainty: accurate decision based on prediction outcome avaliable.
-Risk: manager can estimate the likelihood of certain outcome.
-Uncertainty: neither certainty nor reasonable probability estimates.
-Liner: preference for using external data and facts. / process information through rational, logical thinking.
-non-liner: Internal sources of information./ process information through internal insights, feelings and hunches.
Predicting hunger, Craving, Overconfidence........
The value of collaborative decision-making:
No, you see you can’t. If you want to hire great people and have them stay working for you, you have to let them make a lot of decisions and you have to, you have to be run by ideas, not hierarchy. The best ideas have to win, otherwise good people don’t stay.
Pros and cons of group decision-making
More complete information & knowledge
More diverse alternatives
Increases acceptance of a solution
Pressure to conform
Managerial Problems and decisions
Structured Problems & Programmed Decisions
Structured problems are easily defined
Programmed decisions are those handled by a routine approach
There are set procedures, rules and policies put in place for normal and re-occurring problems in a business
Unstructured Problems & non-programmed decisions
Un-structured problems are new or unusual
Non-programmed decisions need a custom approach
The problem is unique and not re-occurring, meaning it requires a tailored solution
HOW DO MANAGERS ARRIVE AT DECISIONS
choices that are consistent and value-maximising
single, well defined goal
all alternatives and consequences are known
problem is clear and unambiguous
preferences are clear
preferences are constant and stable
no time or cost constraint exist
final choice will maximise profit
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, "satisfying".
previous experience gut-level feeling, accumulated judgement.