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Managing information & decision- making (week 6) (Managing &…
Managing information & decision- making (week 6)
Managing & decision- making
Influenced by sources, quality, and reliability of information
Ability to engage in critical thinking, analysis, and reflection
Execution of POLC
Big Data (large data that be analysed computationally to reveal patterns, trends, and associations)- changing contemporary debates and arguments around decision- making
Determines who will use the data for productive purpose
Methods of decision- making
Rationality
Maximize economic benefit for the organization
Based upon a series of assumptions
Bounded rationality
Bounded by limitations and constraints (ie: time, resources, ...)
"Good enough" but not "Best" decisions
Intuition
Previous experience
"Gut- Level Feeling"
Accumulated judgement
Managerial problems and decisions
Well structured problems: easily defined
Programmed decisions: handle by routine approach
Unstructured problems: new or unusual
Non- programmed decisions: need a custom approach
Group decision- making
Advantages
More complete information & knowledge
More diverse alternatives
Increase acceptance of a solution
Increase legitimacy
Disadvantages
Time consuming
Minority domination
Pressure to conform
Ambiguous responsibility
Conditions of decision- making
Certainty: make PERFECTLY accurate decisions
Risk: estimate the likelihood of certain outcomes
Uncertainty: no ideas about the outcomes
Decision- making styles
Linear (i.e: bank)
Using external data and facts
Process information through rational, logical thinking
Benefits:
Accurate
Scientific method adds quality of data
Cautionary Messages:
Gathering data may be time and energy consuming
Correct assumptions are crucial
Non- linear (i.e: New IT companies, creative, media)
Using internal sources of information
Process information through internal insights, feelings and hunches
Cautionary Messages:
Individual decision making may be overvalued
Human brain may still be poorly understood
Benefits:
Trains rational brain to think more effectively
Decision makers know when to use emotional brain
Decision- making errors
Overconfidence
Selective perception
Self- serving
Hindsight (understanding of situation after it happened)