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Managing Information & Decision-Making (Group Decision-making…

- - - - Managerial decision making is assumed to be rational
      - Rational decisions describe choices that are consistent and value-maximizing
      - Rational decisions are made with the objective of maximizing the economic benefit received by the organization
      - Based on the assumptions that
        
        The problem is clear and unambiguous
        
        A single, well-defined goal is to be achieved
        
        all alternatives and consequences are known
        
        preferences are clear
        
        preferences are constant and clear
        
        no time or cost constraints exist
        
        final choice will maximize payoff
    - - Occurs when decisions are made within the parameters of a simplified model that captures the essential features of a problem
      - This method of decision making is utilized when managers are bout by limitations and constraints while still attempting to behave rationally
      - This can be expressed as when managers decide that their decisions are 'good enough' rather than being 100% confident that the decision will be successful
    - - There is no scientific method involved with intuition
      - Decisions are made solely based on
        
        Previous experience
        
        Gut-feeling
        
        Accumulated Judgement
      - https://www.youtube.com/watch?v=KU0vNd2CtR4
- - - - non-linear: Preference for internal sources of
        information, Process information through internal insights, feelings, and hunches
      - linear:Preference for using external data
        and facts, Process information through rational, logical thinking
    - - Certainty
      - Uncertainty
      - risk
    - - overconfidence, self-serving, hindsight, sunk costs, randomness, representation, immediate gratification, anchoring effect, selective perception, confirmation, framing, availability