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decision making - Coggle Diagram
decision making
conditions, styles and errors
certainty
accurate decision
outcome of alternatives known
risk
estimate likelihood of outcomes
uncertainty
no certainty
no reasonable probability estimates
decision making style
linear
external data
rational thinking
non-linear
internal data
internal insights/feelings
CAN MAKE ERRORS/BIASES
overconfidence
hindsight
anchoring effect
representation
arriving at decisions
rationality
CONSISTENT AND VALUE MAXIMISING
problem is clear
well-define goal
consequences known
alternatives known
preferences clear
no time of cost restraints
bounded rationality
parameters of simplified model
essential features of plan
bounded = limitations and constraints
behave rationally
'satisficing'
intuition
previous experience
'gut feeling'
accumulated judgement
managerial problems
well structured
procedure -> rule -> policy
unstructured
unique + non-recurring = tailored solution
group decision making
advantages
complete information
diverse alternative
increased acceptance (solution)
increase legitimacy
disadvantages
time consuming
minority domination
pressure to conform
ambiguous responsibility
POLC / information
managing
influenced by
sources
quality
reliability
good decision making
critical thinking
analysis
reflection
POLC = decision making
BIG DATA - changing contemporary debate about decision making