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Managing Information and Decision-Making (Methods of Decision-Making…

- - - - Clear and Unambiguous
      - Well-defined goal
      - All alternatives and consequences are known
      - Preferences are clear
      - No time or cost constraints
      - Finale choice will maximize payoff
  - - - Previous Experience
      - 'Gut Level Feeling'
      - Accumulated Judgement

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Managing Information and Decision-Making

Managing Information and Decision-Making

Methods of Decision-Making

Rationality

Bounded Rationality

Intuition

Assumed to be rational

Consistent and Value-Maximizing

Maximize economic organization

Assumes:

Clear and Unambiguous

Well-defined goal

All alternatives and consequences are known

Preferences are clear

No time or cost constraints

Finale choice will maximize payoff

Decisions made within parameters

Good enough decision-making

Product of:

Previous Experience

'Gut Level Feeling'

Accumulated Judgement

Pros and Cons of Group Decision-Making

Advantages:

Disadvantages:

More complete info

Diverse alternatives

Increased acceptance of Solution

Increase Legitimacy

Time consuming

Minority Domination

Pressure to conform

Ambiguous responsibility

Types of problems and decisions:

Well-Structured

Un-structured

Easily defined

Handled by routine approach

New or unsual

Needs custom approach