CH. 6 Decision Making
Management 3100 with Sauser at Auburn University
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Data
raw facts and observations
Information
data made useful and meaningful for decision making
Information Technology
helps us acquire, store, process, analyze and transmit information
Intelligence Information
gathered from stakeholders and external environment
Internal information
flows up, down, around and across organizations
public information
disseminated to stakeholders and external environment
information systems
use of IT to collect, organize and distribute data for use in decision making
Management Information systems (MIS)
meet the specific needs of managers as they make variety of day to day decisions
problem solving
process of identifying a discrepancy between an actual and a desired state of affairs and taking action to resolve it
decision
choice among possible alternative courses of action
performance deficiency
most obvious problem situation and when performance is less than desired
performance opportunity
when a situation either turns out better than anticipated or offers the potential to do so
problem avoiders
managers who ignore information that would otherwise signal the presence of a performance opportunity or defiency
problem solvers
those willing to make decisions and try to solve problems but only when forced to
problem seekers
those who actively process information and constantly look for problems to solve
systematic thinking
approaching problems in a rational step by step analytical fashion
intuitive thinking
approaches problems in a flexible and spontaneous fashion, might be creative
multidimensional thinking
ability to view many problems at once in a relationship to one another and across both long and short term horizons
strategic opportunism
ability to remain focused on long term objectives while being flexible enough to resolve short term problems
sensation thinker
emphasize the impersonal and take a realistic approach to problem solving
sensation feelers
emphasize both the analysis and human relations
intuitive thinkers
comfortable with abstract and unstructured situations, logical and impersonal
intuitive feelers
prefer broad global issues, insightful avoid details, value flexible and human relations
structured problems
straightforward and clear in information, routine and can be dealt with with programmed decisions
unstructured problems
new or unusual situations full of ambiguities...nonprogrammed decisions required creating solutions that meet the demands of unique situations
crisis
unexpected problem that can lead to disaster if not resolved quickly
crisis management
preparation for the management of crises that threaten an org. health
( anticipation and preparation)
certain environment
ideal situation where information is avialable about other courses of actions and outcomes
(low risk programmed decisions)
risk environment
lacks complete information but offers probabilities of outcomes
(medium risk based on probabilities)
uncertain environment
almost no information with no probabilities
(high risk non programmed decisions)
cost benefit analysis
comparing costs and benefits
stakeholder analysis
costs, benefits, timeliness, ethical soundness
classical decision
manager acts rationally decides with complete info
optimizing decision
chooses the alternative giving the best solution
bounded rationality
making decision with in the restraints of limited info
behavioral decision
people act only in terms of what they perceive about a given situation (limited info and bounded rationality)
satisfying decision
choosing the first satisfactory alternative that comes to ones attentions
lack of participation error
failure to involve everyone needed to support a decision
heuristics
strategies for simplifying decision making
availability heuristic
bases a decision on recent info or events
anchoring and adjustment heuristic
bases a decision on incremental adjustments from prior decision
framing error
when a problem is evaluated and resolved in the context in which it is perceived
conformation error
when focusing only on info that confirms a decision already made
escalating commitment
continuation of a course of action even though it is not working
creativity
making a new idea or unique approach that solves a problem or makes an oppourtunity
About this deck
About StudyBlue
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Things like online flashcards with photos and audio.
Things like personalized quizzes and friendly reminders about when (and what) to study next.
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“I have been getting MUCH better grades on all my tests for school. Flash cards, notes, and quizzes are great on here. Thanks!”
Kathy
Kathy