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Managing Information and Decision Making - Coggle Diagram
Managing Information and Decision Making
POLC, INFORMATION AND DECISION MAKING
decision making influenced by:
source
quality and reliability of information
the more reliable the information, the better the decisions
ability to engage in critical thinking, analysis and reflection
determines how well one makes decision
execution of POLC = decision making
VALUE OF COLLABORATIVE DECISION MAKING
Disadvantages
pressure to conform
ambiguous responsibility
time consuming to consult whole group
minority domination, decision may not reflect opinions of whole group
Advantages
increased acceptance of solutions by the group
more complete information + knowledge
more diverse alternatives
increased legitimacy
How do managers make decisions?
Rationality
Consistant
Value maximising
Specific constraints, known consequences
Objective/measurable protocols
No time/cost constraints
Bounded rationality
Decisions made with parameters
Bounded by limitations and constraints
"Good enough" decision
Intuition
Subjective
'Gut feeling'
Previous experience, values, ethics
Greater experience/emotional intuition= successful decision making
Creative org. use to 'stand out'
MANAGERIAL PROBLEMS AND DECISIONS
TYPES OF PROBLEMS & DECISIONS
well structured problems and programmed decisions
structured problems
straightforward, familiar and easily defined
programmed decisions
repetitive decision
can be handled by routine or standardised approach
procedure, rule or policy
example - if a fire occurs
un-structured problems and non-programmed decisions
unstructured problems
new and unusual
information is ambiguous
non-programmed decisions
need a custom approach
existing standards will not likely be appropriate
example - COVID
CONDITIONS OF DECISION MAKING
experience wide range of conditions = shifts in environments
effective managers - competent decision makers
CONDITIONS
certainty
outcome of every alternative is known
accurate decisions
no need for contingency thinking
idealistic > realistic
risk
estimate the likelihood of certain outcomes
ability to assign probabilities to outcomes
use personal experiences, secondary information or historical data
uncertainty
netter certainty or reasonably probability estimates available
limited information available
psychological orientation of the decision maker can influence choices
optimistic manager - maxima choice
pessimist - maximin choice
DECISION MAKING STYLES
linear
preference for using external data and facts
process information through rational, logical thinking
grounded approach to decision making
non-linear
Process information through internal insights
Feelings/hunches
Preference for internal sources of information
DECISION MAKING ERRORS
overconfidence
immediate gratification
anchoring effects
selective perception
confirmation
framing
availability
representation
randomness
sunk costs
self-serving
hindsight