POLC, INFORMATION & DECISION-MAKING

Decisions

Rationality

Bounded Rationality

Intuition

Clear and unambiguous

well-defined goal

Preferences are clear

Preferences (constant & stable)

No time or cost constraints

Maximise payoff

Made within the parameters

limitations and constraints

“Satisficing”

Previous Experience

Gut Feeling

Accumulated Judgment

Types of Problem & Decision

Well structured problems & programmed
decisions

Un-structured problems & non-programmed decisions

Group Decision Making

Advantage

Disadvantage

More information & knowledge

More diverse alternatives

Increases acceptance of a solution

Increase legitimacy

Time consuming

Minority domination

Pressure to conform

Ambiguous responsibility

Condition

Certainty

Stye

Risk

Uncertainty

Linear

Non-Linear

Errors

using external data

internal sources

Insights, feelings, and hunches

rational, logical thinking

Overconfidence

Immediate gratification

Anchoring effect

Selective perception

Confirmation

Framing

Availability

Representation

Randomness

Sunk costs

Self-Serving

Hindsight