Podcast
Questions and Answers
Data is considered processed and analyzed facts.
Data is considered processed and analyzed facts.
False (B)
Completeness is an attribute of useful information that ensures managers have all the information needed to make effective decisions.
Completeness is an attribute of useful information that ensures managers have all the information needed to make effective decisions.
True (A)
Uncertainty in decision-making refers to knowing the possible outcomes and assigning probabilities to them.
Uncertainty in decision-making refers to knowing the possible outcomes and assigning probabilities to them.
False (B)
The first step in the decision-making process is to develop alternatives.
The first step in the decision-making process is to develop alternatives.
Managers often have complete information when making decisions due to the nature of information availability.
Managers often have complete information when making decisions due to the nature of information availability.
Structured problems are typically new or unusual issues that require innovative solutions.
Structured problems are typically new or unusual issues that require innovative solutions.
Relevance in the context of useful information means the information suits a manager's particular needs and circumstances.
Relevance in the context of useful information means the information suits a manager's particular needs and circumstances.
After selecting an alternative in the decision-making process, the next step is to analyze its effectiveness.
After selecting an alternative in the decision-making process, the next step is to analyze its effectiveness.
Programmed decisions are characterized by being unique and nonrecurring.
Programmed decisions are characterized by being unique and nonrecurring.
A rule is an explicit statement that tells managers what can or cannot be done.
A rule is an explicit statement that tells managers what can or cannot be done.
Nonprogrammed decisions arise from well-structured problems with clear guidelines.
Nonprogrammed decisions arise from well-structured problems with clear guidelines.
The certainty condition in decision-making means that all information needed is unknown.
The certainty condition in decision-making means that all information needed is unknown.
The immediate gratification bias involves choosing options with delayed rewards.
The immediate gratification bias involves choosing options with delayed rewards.
Sunk costs error leads individuals to focus on future consequences rather than past investments.
Sunk costs error leads individuals to focus on future consequences rather than past investments.
Intuitive decision-making relies solely on logical reasoning without any personal experience.
Intuitive decision-making relies solely on logical reasoning without any personal experience.
Evidence-based decision-making emphasizes the use of the best available facts for making decisions.
Evidence-based decision-making emphasizes the use of the best available facts for making decisions.
Groupthink promotes the open exchange of differing opinions within a group.
Groupthink promotes the open exchange of differing opinions within a group.
Information technology is limited to organizing and storing data without enhancing decision-making.
Information technology is limited to organizing and storing data without enhancing decision-making.
Enterprise Resource Planning (ERP) systems integrate various business processes across an organization.
Enterprise Resource Planning (ERP) systems integrate various business processes across an organization.
The rational decision-making approach assumes that all decision-makers are fully objective and logical.
The rational decision-making approach assumes that all decision-makers are fully objective and logical.
Bounded rationality indicates that managers can analyze all possible information and alternatives.
Bounded rationality indicates that managers can analyze all possible information and alternatives.
A procedure consists of a series of steps used to respond to ill-structured problems.
A procedure consists of a series of steps used to respond to ill-structured problems.
Flashcards
Data
Data
Raw, unanalyzed facts. It's like the ingredients before you bake a cake.
Information
Information
Processed and analyzed data, providing meaning and context. It's like the baked cake itself, made from raw ingredients.
Information Quality
Information Quality
The accuracy and reliability of information, making it more trustworthy. It's like having the right recipe for the cake.
Timeliness of Information
Timeliness of Information
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Completeness of Information
Completeness of Information
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Relevance of Information
Relevance of Information
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Problem
Problem
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Decision Making
Decision Making
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Programmed Decision
Programmed Decision
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Procedure
Procedure
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Rule
Rule
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Policy
Policy
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Nonprogrammed Decision
Nonprogrammed Decision
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Certainty
Certainty
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Risk
Risk
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Uncertainty
Uncertainty
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Ambiguity
Ambiguity
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Overconfidence Bias
Overconfidence Bias
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Immediate Gratification Bias
Immediate Gratification Bias
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Anchoring Effect
Anchoring Effect
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Confirmation Bias
Confirmation Bias
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Hindsight Bias
Hindsight Bias
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Sunk Costs Error
Sunk Costs Error
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Study Notes
Data and Information
- Data are raw, unanalyzed facts.
- Information is processed and analyzed data.
- Useful information has quality, timeliness, completeness, and relevance.
Attributes of Quality Information
- Quality: Accurate and reliable information is high quality.
- Timeliness: Information needs to be available in a timely manner, often real-time.
- Completeness: Complete information provides all needed data for decisions.
- Relevance: Relevant information directly helps managers in their tasks and needs.
Incomplete Information
- Real-world decisions lack complete information due to:
- Risk: Potential outcomes and probabilities are known.
- Uncertainty: Outcomes' probabilities are unknown.
- Ambiguity: Multiple, potentially conflicting interpretations of information.
- Time constraints and information costs: Limited time and resources to evaluate all options.
Decision Making
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Decision-making involves steps:
- Identify a problem: Discrepancy between desired and current state.
- Identify decision criteria: Define what's important.
- Allocate weights to criteria (if needed): Prioritize criteria.
- Develop alternatives.
- Analyze alternatives using criteria.
- Select an alternative.
- Implement the alternative.
- Evaluate decision effectiveness.
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Structured vs. Unstructured Problems:
- Structured problems are familiar and easily defined.
- Unstructured problems are unique and unusual, demanding custom-made solutions.
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Programmed vs. Nonprogrammed Decisions:
- Programmed decisions are routine, with established guidelines.
- Types: Procedures, rules, and policies.
- Nonprogrammed decisions are unique, requiring creative solutions to novel problems/opportunities.
- Programmed decisions are routine, with established guidelines.
Conditions Affecting Decisions
- Certainty: Complete information is available.
- Risk: Clear goals and estimated probabilities of success/failure.
- Uncertainty: Known goals, but incomplete information about alternatives or future events.
- Ambiguity: Unclear goals, hard-to-define alternatives, and unavailable outcome information.
Decision-Making Biases and Errors
- Overconfidence bias: Overestimating one's knowledge or abilities.
- Immediate gratification bias: Prioritizing immediate rewards over long-term gains.
- Anchoring effect: Focusing too much on initial information.
- Confirmation bias: Seeking information confirming pre-existing beliefs.
- Hindsight bias: Falsely believing an outcome was predictable.
- Sunk cost error: Focusing on past investments instead of future outcomes.
- Self-serving bias: Attributing successes to oneself and failures to others.
Decision-Making Approaches
- Rational decision-making: Logical choices to maximize value.
- Rationality assumptions: Objective, clear goals, thorough analysis of options, and maximizing choices.
- Bounded rationality: Rational but limited by cognitive capacity.
- Satisfice: Choosing a "good enough" solution.
- Intuitive decision-making: Based on experience and feelings.
Innovative Decision-Making Techniques
- Brainstorming: Interactive group to generate diverse ideas.
- Evidence-based decision-making: Using best available evidence for smart decisions.
- Rigorous debate: Encourages constructive conflict for better decisions.
- Avoid groupthink: Prevent suppression of dissenting opinions.
Information Systems and Management
- Information technology (IT): Methods for acquiring, organizing, manipulating, and transmitting information.
- Impact of IT on business: Increased flexibility, collaboration, global exchange, and business opportunities.
- Information system: Using IT to convert data into usable information.
- Customer Relationship Management (CRM): Software for managing customer interactions.
- Enterprise Resource Planning (ERP): Software that integrates operational and business processes.
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Description
Test your understanding of data, information, and their attributes. This quiz covers the qualities of information needed for effective decision-making and the challenges posed by incomplete information. Dive into concepts such as quality, timeliness, completeness, and relevance.
