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Managing Information & Decision-Making (Managing and decision-making…
Managing Information & Decision-Making
Video Resource - Team Decision Making
Don't be an ego maniac
Recognize your ego could be a big obstacle to team decisions
Conditions of decision-making
certainty
manager can make accurate decisions as they know for certain the outcomes of all alternatives
risk
manager can estimate the likelihood of certain outcomes
uncertainty
manager has neither certainty nor reasonable probability estimates
Methods of managerial decision-making
Rationality
An economic theory that does not exist in real-life
Assumes:
The problem is clear and unambiguous
A single, well-defined goal is to be achieved
Preferences are clear
Preferences are constant and stable
No time or cosrt constraints exist
Final choice will maximise payoff
Bonded Rationality
Decision made within certain parameters
Bounded by the limitations and constraints, managers attempt to behave rationally
"Good enough" decisions
Intuition
A product of previous experiences, "gut-level" feeling & accumulated judgment
Managing and decision-making
Decision-making influenced by sources, quality, and reliability of information.
Ability to engage in critical thinking, analysis, and reflection determines how well one makes decision based on available information
The execution of the managerial functions of POLC results in decision-making, often daily.
Big Data and its associated analytics changing contemporary debates and arguments around decision-making.
As organisational decisions increasingly become more data driven, managers need to consider inclusiveness of data, (i.e. who uses it) in addition to the use of data for productive purpose.
Types of problems and decisions
Well-structured problems and programmed decisions
Structured problems are well defined
Un-structured problems and non-programmed decisions
Un-structured problems are new or unusual
Non-programmed decisions need a custom approach
Decision making styles
non- linear
preference for internal sources of information,
process information through internal insights, feeling, hunches
linear
preference using external data and facts
process information using logical, rational thinking