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MANAGING INFO & DECISION-MAKING - Coggle Diagram
MANAGING INFO & DECISION-MAKING
POLC, Info, Decision-making
Managing & Decision-making
source, quality and reliability of info
critical thinking, analysis, reflection of decision maker
the execution of POLC
Big Data and its analytics
How do managers arrive at decisions?
Methods of managerial decision-making
1/ rationality
make choices that r consistent & value maximizing
when all alternatives and their outcomes are available
2/ bounded rationality
bounded by an individual's ability to process
not best option but satisfying (good enough) is accepted
3/ intuition
previous experience
gut feelings
accumulated judgement
Managerial problems & decisions
Types of problems & decisions
Well-structured problems (encountered before/frequently) -> programmed decisions (protocol)
Un-structured problems -> non-programmed decisions (customized solution for specific issue)
Group decision-making
Advantages
more complete info & knowledge
increases acceptance of a solution
more diverse alternatives
increases legitimacy
Disadvantages
minority domination
pressure to conform
time consuming
ambiguous responsibility
Decision-making conditions, styles, errors
Decision-making styles
Linear thinking (use external data -> then decide logically)
Non-linear thinking (use internal data -> then make decisions based on feelings)
Conditions of decision-making
Certainty (outcome of alternatives is known)
Risk (probability/likelihood of the alternatives is reasonably calculated)
Uncertainty (no certainty, no reasonable probability)
Decision-making errors & biases (Txtbook pg. 215-216)