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Managing Information and Decision Making - Coggle Diagram
Managing Information and Decision Making
POLC, INFORMATION & DECISION-MAKING
Decision-making influenced by sources, quality, and
reliability of information
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
Big Data and its associated analytics changing contemporary debates and arguments around decision-making
POLC: Planning/ Organising/ Leading/ Controlling
METHODS OF MANAGERIAL DECISION-MAKING
Rationality
Assumed to be completely rational
Defined as choices that are consistent ad value maximising
Makes numerous assumptions
Issue is clear and unambiguous
Desired goal is singular and well defined
Aware of all alternatives and consequences
Preferences are made
Clear (Easily defined)
Constant
Stable
No time or cost constraints exist
Final choice maximises payoff
Bounded Rationality
Decisions made within the constraints of a model
Model is simple
Model is structured
Model focuses solely on the essential features of a problem
Constraints are implemented
Ensures managers aren't excessively ambitious
Allows managers to stay grounded and rational when making decisions
Decisions are "Good enough" - Enough to adequately satisfy the problem, but don't provide additional benefit beyond that
Intuition
Varies and is composed of numerous individual elements
Individuals previous experience
An individuals "Gut Feeling"
Individuals accumulated judgement
MANAGERIAL PROBLEMS & DECISIONS
Un-structured problems and non-programmed decisions
unique
Tailored solution
Non recurring
Well structured problems and programmed decisions
Procedure
Rate
Policy
Decision-Making Conditions, Styles and Errors
Conditions of Decision Making
Risk
Estimate likelihood of outcomes (very common situation)
Uncertainty
Limited amount of information available for decision maker
Certainty
Decision maker can make accurate decisions --> outcome is known
Decision Making Styles
Linear
External data and facts
Rational and logical thinking
Non-Linear
Internal sources
Information is processes though internal insights and feelings
Decision Making Errors
Overconfidence
Selective perception
Hindsight
Availability
Randomness
Group desicion-making
Advantages
More complet information &knowledge
More diverse alternatives
Increase acceptance of a solution
Increase legitimacy
Disadvantages
Time consuming
Minority domination
Pressure to conform
Ambiguous responsibility
The value of collaborative decision-making