Please enable JavaScript.
Coggle requires JavaScript to display documents.
Introduction to management - Coggle Diagram
Introduction to management
Managing & Decision-making
Decision-making
Influenced by
Information
Sources
Reliability
Quality
Managerial functions
Planning
Organizing
Leading
Controlling
"Big Data"
Determined by
Critical thinking
Analysis
Reflection
ARRIVING AT DECISIONS
METHODS
RATIONAL
Bounded rationality
Intuition
RATIONALITY
Managerial decision making
choices that are consistent
and value-maximising
Assumes
problem is clear and unambiguous
A single, well-defined goal
Allalternativesandconsequencesareknown
Preferencesareclear
Preferencesareconstantandstable
No time or cost constraints exist
Final choice will maximise payoff
BOUNDED RATIONALITY
Decisions made within the parameters
Bounded by the limitations and constraints
“Good enough” decisions – “satisficing”
INTUITION
a product of
Previous Experience
“Gut-Level Feeling”
Accumulated Judgment
Decision making
Styles
Linear
External data
Facts
Logical
Non-linear
Internal
Insights
Conditions
Risk
Uncertainty
Certainty
Errors
Overconfidence
Immediate gratification
Anchoring effect
Selective perception
Confirmation
Framing
Availability
Representation
Randomness
Sunk costs
Self-serving
Hindsight
How to make a better decision
Framework
identification
inventory
intervention
Institutionalization
Group Decision-making
The value of collaborative decision-making
Steve Jobs: run by ideas not hierachy
Advantages and disadvantages
Disadvantages
Time consuming
Minority domination
Pressure to conform
Ambiguous responsibility
Advantages
More diverse alternatives
Increase acceptance of solutions
More complete information and knowledge
increase legitimacy