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Week 6: Managing Information & Decision-Making - Coggle Diagram

- - - - Rationality
        
        managerial decision-making is assumed to be rational.
        
        rational decisions describe choices that are consistent & value-maximising.
        
        maximising assumes: the problem is clear & unambiguous, a single well-defined goal is to be achieved, all alternatives & consequences are known, preferences are clear, preferences are constant & stable, no time/cost constraints exist, final choice will maximise payoff.
      - Bounded Rationality
        
        decisions made within the parameters of a simplified model that captures the essential features of a problem.
        
        bounded by limitations & constraints, managers attempt to behave rationally.
        
        "good enough" decisions - "satisficing"
      - Intuition
        
        Steve Jobs & the evolution of his intuition.
        
        Intuition a product of: previous experience, "gut-level feeling" and accumulated judgement.