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Managing information and Decision-making - Coggle Diagram
Managing information and Decision-making
Types of decision making
Rationality- constant and value maximising , maximising the economic benefit for organisation , objective protocols, assumes problem is clear and is likely.
A goal is to be achieved
Preferences are clear and stable
No time or cost constraints
Not always the best option
Bounded rationality
Limitations and constraints
Leads to good enough decision , " saticifising"
Intuition
Gut- feeling
Previous experience
Accumulated judgement
Greater experience, greater accuracy
creative based industry use this, in order to stand out and get ahead
Experienced managers use a combination of these methods
Problems arise from this
Decision making problems
Group decision- making
Complexity of contemporary structure
Reliant on group decision making
Value of collabrive decision making
Run by ideas, not hierarchy
Want good, talented people to be heard, as the value and impact from decisions may be significant for the firm
Advantages of decision-making
Complete picture of knowledge and ideas
More diverse alternatives , increasing acceptance of a solution
Increased legitimacy from the group dynamic
Diverse knowledge and innovative ideas
Disadvantages of group decision making
Resonpibility, formally created manager or natrualed formed,affecting quality potential of decision
Individual domination, from group which making
Time consuming for group decision making
Pressure to conform, those with valuable ideas, conform to the form ideology from the group
Decision- making conditions
The certainty condition
A manager who can make accurate decisions because the outcome of every alternative is known
Risk based
A manger can estimate the likelihood go certain outcomes
Uncertantiy
A mangers don't know the outcomes of cannot estimate them
Decision making styles
Linear approach
preference for using external data and facts, grounded approach, process information through rational and logical thinking
Non-linear approach
Prevalence for internal sources of information, process information through internal instinct, feeling and hurdles
Different mangers variety, depending on experience and personal characteristics
Errors and bias
Stereo typing
Mangers need to avoid the anchoring affect
Hertgacy
Over- confidence bias
the immediate justification bias
anchoring effect
selective perception bias
Confirmation bias
framing bias
availability bias
representative bias
randomise bias
sunk cost bias
self-serve bias
kind system bias
Mangers perception on individual is anchored due to stereo types
Decision making is influenced by sources , quality of information and reliability of information
Ability to engage in critical thinking and analysis based on information
POLC- results in decision making, daily, even several times a day
Big data is changing around decision-making as people are reliant on it
more data driven- inclusiveness- who uses it, for productive purposes, to what end and via what means and strategies
The more complete and reliable information, the better the decision will be
Mangers should get help and critical analysis from observers
analysis themselves
Structures
Well structured and programmed decisions- straight forward, familiar and easily defined problems
a repetitive decision that can be handled by routine
Procedure
Policy
Rule
Simple to follow and ensures consitsa=tancy
Unstructured problems and non programmed decision
Problems that are new r unusual for which information is ambiguous of incomplete
Custom made responses
Technology is used for decision-making