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Managing Information and Decision-Making - Coggle Diagram
Managing Information and Decision-Making
LO 3: MANAGERIAL PROBLEMS & DECISIONS
TYPES OF PROBLEMS & DECISIONS
Well structured problems & programmed decisions
Rule
Policy
Procedure
Un-structured problems & non- programmed decisions
Unique+Non Recurring=Tailored solution
POLC, Information, decision-making
Influenced by factors
Sources,quality, reliability of information
available information
results in daily decision-making
Big data
How do managers arrive at decisions?
rationality
consistent
value-maximizing for organization
has a clear view of the problem
bounded rationality
decisions based on what they know at the time
bounded by limitations and time constraints
captures the essential features of a problem
intuition
decisions based on gut feeling
past experiences
based on culture and ethics
Group Decision-making
Advantages
Diverse alternatives
Increased acceptance of solution
More complete knowledge
Increased legitimacy
Disadvantages
Minority domination
Pressure to conform
Time-consuming
Ambigious responsibility
Decision-making conditions, styles and errors
Conditions
Certainty
Every alternative known
Risk
Likelihood of certain outcomes known
Uncertainty
Outcomes cannot be known
Errors
Selective perception
Confirmation
Anchoring effect
Framing
Immediate Gratification
Availability
Overconfidence
Representation
Randomness
Sunk Costs
Self-serving
Hindsight
Styles
Linear
External data
Rational and Logical
Non-linear
Internal sources
intuition and feelings