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W6 - Managing Information and Decision-Making - Coggle Diagram
W6 - Managing Information and Decision-Making
LO1: POLC, INFORMATION & DECISION-MAKING
MANAGING & DECISION-MAKING
Critical thinking, analysis, and reflection determines how well one makes decisions based on available information
The execution of the managerial functions of POLC
results in decision-making, often daily
Decision-making influenced by sources, quality, and
reliability of information
Big Data and its associated analytics changing
contemporary debates and arguments around decision-making
LO2: How do Managers arrive at Decisions?
Rationality
Decisions made are consistent, value-maximising, rational
Problem clear/unambiguous
Single, well-defined goal
All alternatives/consequences known
Preferences clear, stable, constant
No time or cost constraints
Final choice maximises payoff
Bounded Rationality
Decisions made within simplified model
Features limitations and constraints
Model captures problem's essential features
Managers attempt to be rational
Aim for "Good Enough/Satisficing" Decisions
Intuition
Previous experience
Gut-level feeling
Accumulated judgement
MANAGERIAL PROBLEMS & DECISIONS
TYPES OF PROBLEMS & DECISIONS
Well structured problems and programmed
decisions
Procedure > Rule > Policy
Un-structured problems and nonprogrammed decisions
Unique + Non-recurring > Tailored solution
GROUP DECISION-MAKING
ADVANTAGES & DISADVANTAGES OF GROUP
DECISION-MAKING
Advantages
More diverse alternatives
Increases acceptance of a solution
More complete information & knowledge
Increase legitimacy
Disadvantages
Minority domination
Pressure to conform
Time consuming
Ambiguous responsibility
THE VALUE OF COLLABORATIVE DECISION-MAKING
Steve Jobs on the value of collaborative decisionmaking
No, you see you can’t. If you want to hire great
people and have them stay working for you, you have to let them make a lot of decisions and you have to, you have to be run by ideas, not hierarchy. The best ideas have to win, otherwise
good people don’t stay.
DECISION-MAKING CONDITIONS,
STYLES & ERRORS
DECISION-MAKING STYLES
DECISION-MAKING ERRORS
CONDITIONS OF DECISION-MAKING
Risk
A manager can estimate the likelihood of
certain outcomes
Uncertainty
A manager has neither certainty nor
reasonable probability estimates
Certainty
A manager can make accurate decisions
because the outcome of every alternative is known