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Managing Information and Decision-Making (Methods of Decision-Making…
Managing Information and Decision-Making
Methods of Decision-Making
Rationality
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
Bounded Rationality
Decisions made within parameters
Good enough decision-making
Intuition
Product of:
Previous Experience
'Gut Level Feeling'
Accumulated Judgement
Pros and Cons of Group Decision-Making
Advantages:
More complete info
Diverse alternatives
Increased acceptance of Solution
Increase Legitimacy
Disadvantages:
Time consuming
Minority Domination
Pressure to conform
Ambiguous responsibility
Types of problems and decisions:
Well-Structured
Easily defined
Handled by routine approach
Un-structured
New or unsual
Needs custom approach