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Managers & Decisions making - Coggle Diagram
Managers & Decisions making
managerial problems and decisions
well structured problems
rule
procedure
policy
un-structured problems
non programmed
unique + non recurring = tailored solution
POLC, Information + Decision Making
managerial function of POLC
often daily
=decision making
critical thinking
reflection
analysis
influencing decisions
quality
sources
reliability of info
big data
influencing contemporary debates
arguments
Decision-making
Bounded Rationality
Bounded by limitations and constraints
Good enough decisons
Intuition
Gut-level feeling
Accumulated Judgement
Previous Experience
Rationality
Assumptions
Alternatives and Consequences are known
Preferences are clear
Preferences: Constant and stable
Time and cost constraints don't exist
single well defined goal
Final choice = Maximize profit
Problems: Clear and unambiguous
Choices
Value Maximising
Consistent
Decision-making conditions,styles & errors
Conditions of decision-making
Risk
The outcome can be estimate
Uncertainty
Neither certainty nor reasonable estimates
Certainly
The outcome of every alternative is known
Decision-making styles
Linear
External data and facts
More rational, logical
Non-Linear
Internal sources of information
More to lean on insights, feelings and huches.
Decision-making errors and biases
Confirmation
Framing
Selective perception
Availability
Anchoring effect (Individuals rely too heavily on the initial information provided to make subsequent judgments during the decision-making process)
Representation
Immediate gratification
Randomness
Overconfidence
Sunk costs
Self-serving
Hindsight
LO4: Group decision making
Advantages
More diverse alternatives
Increases acceptance
More info & knowledge
Increase legitimacy
Disavantages
Minority domination
Pressure to conform
Time consuming
Ambiguous responsibility
Reference of group decison making
Organisations should be run by ideas, not hierachy