Please enable JavaScript.
Coggle requires JavaScript to display documents.
Week 6: - Coggle Diagram
Week 6:
Decision Making Errors and Biases
Self serving
Framing
Hindsight
Availability
Overconfidence
Randomness
Managing and Decision Making
The execution of the managerial functions of POLC results in decision making, often daily
Big data and its associated analytics are changing contemporary debates and arguments around decision making.
Critical thinking, analysis and reflection determines how well one makes decisions based on available information
Decision making influences by sources, quality and reliability of information
Methosd of managerial decision making
Bounded rationality
Decisions made within the parameters of a
simplified model that captures the essential
features of a problem
Intuition
Rationality
Rational decisions describe choices that are consistent and value- maximising
Rationality Assumes
The problem is clear and unambiguous
a single, well defined goal is to be achieved
all alternatives and consequences are known
references are clear
Managerial decion making is assumed to be rational
GROUP DECISION-MAKING
THE VALUE OF COLLABORATIVE DECISION-MAKING
Steve Jobs on the value of collaborative decision-making
The best ideas have to win, otherwise good people don’t stay
ADVANTAGES & DISADVANTAGES OF GROUP DECISION-MAKING
Advantages
More diverse alternatives
Increases acceptance of a solution
More complete information & knowledge
Increase legitimacy
Disadvantages
Minority domination
Pressure to conform
Time consuming
Ambiguous responsibility
Learning Objective 3: Managerial Problems and Directions
Well Structured Problems and Programmed Decisions
Structure problems are easily defined
Programmed decisions are those handed by a routine or standardised approach
Un-Structured Problems and Non-Programmed Decisions
Unsctructured problems ave not been seen before and thus require a new structure to be created
Non-Programmed Decisions Need a custom approach