Decision Making and Information Quality

Data = Raw, unanalyzed facts Information = Processed and analyzed data Quality = Accuracy and reliability of information Timeliness = Availability of information on a real-time basis

Completeness = Gives managers all the information needed Relevance = Useful and suits particular needs Risk = Known outcomes with assignable probabilities Ambiguity = Information interpretable in multiple ways

Structured problems = Straightforward and easily defined Unstructured problems = New or unusual problems Programmed decisions = Follow established guidelines Nonprogrammed decisions = Requires creative problem solving

<p>Identify a problem = First step in decision-making Analyze alternatives = Fifth step in decision-making Select an alternative = Sixth step in decision-making Evaluate decision effectiveness = Eighth step in decision-making</p> Signup and view all the answers

<p>Uncertainty = Probabilities of outcomes cannot be determined Time constraints = Limited time to search for solutions Cost of information = Financial limitations on data gathering Ambiguity = Multiple interpretations of information</p> Signup and view all the answers

<p>Decision criteria = Factors that define importance in resolving problems Weights = Prioritization of decision criteria Develop alternatives = Creating different options to consider Implement the alternative = Putting the chosen decision into action</p> Signup and view all the answers

<p>Quality = High accuracy of market data Timeliness = Real-time updates on sales figures Relevance = Tailored reports for management needs Completeness = Full financial disclosure for decision-making</p> Signup and view all the answers

<p>Risk = Known outcomes with probabilities Uncertainty = Unknown future outcomes Ambiguity = Conflicting interpretations of data Time constraints = Limited duration for decision-making</p> Signup and view all the answers

<p>Programmed Decisions = Decisions made in response to well-structured problems Nonprogrammed Decisions = Unique decisions requiring custom-made solutions Procedures = A series of sequential steps for addressing problems Policies = Guidelines for making decisions</p> Signup and view all the answers

<p>Certainty = All necessary information is fully available Risk = Clear-cut goals with some information for estimation Uncertainty = Incompleteness of information about alternatives Ambiguity = Unclear goals and difficult-to-define alternatives</p> Signup and view all the answers

<p>Overconfidence Bias = Believing you know more than you actually do Confirmation Bias = Seeking information that reaffirms past choices Sunk Costs Error = Focusing on past expenditures over future consequences Hindsight Bias = Believing outcomes were predictable after they occur</p> Signup and view all the answers

<p>Rational Decision Making = Logical choices to maximize value Bounded Rationality = Satisficing rather than maximizing solutions Intuitive Decision Making = Based on experience and feelings Evidence-Based Decision Making = Making informed decisions based on facts</p> Signup and view all the answers

<p>Brainstorming = Spontaneous suggestion of alternatives in a group setting Rigorous Debate = Constructive conflict to enhance decision quality Avoid Groupthink = Suppressing contrary opinions within a group Innovative Techniques = Using creativity in the decision-making process</p> Signup and view all the answers

<p>Customer Relationship Management (CRM) = Monitoring contacts with customers Enterprise Resource Planning (ERP) = Integrating business processes across an organization Information Technology (IT) = Methods for managing and transmitting information Information System = Converting data into actionable information</p> Signup and view all the answers

<p>Rationality Assumptions = Logical and objective manager decision-making Satisficing = Choosing the first alternative that meets minimal criteria Intuition = Quick decisions based on experience without conscious thought Innovative Decision-Making = Using new techniques for better decisions</p> Signup and view all the answers

<p>Anchoring Effect = Fixating on initial information despite later evidence Immediate Gratification Bias = Choosing options for fast rewards, ignoring costs Self-Serving Bias = Credit for successes while blaming failures on others Hindsight Bias = Incorrectly believing an outcome was predictable</p> Signup and view all the answers

<p>Portable Offices = Remote access to information Increased Collaboration = Improving teamwork through technology New Business Opportunities = Innovations and market creation via IT Efficient Organizations = Streamlining operations through technology</p> Signup and view all the answers

<p>Certainty = Full availability of essential information Risk = Some information is available for outcome estimation Uncertainty = Lack of complete information on outcomes Ambiguity = Unclear problem definitions and potential solutions</p> Signup and view all the answers

<p>Nonprogrammed Decisions = Responses to unusual opportunities or threats Procedures = Sequential actions for addressing structured problems Rules = Statements indicating what can or cannot be done Policies = Broad guidelines for decision-making</p> Signup and view all the answers

<p>Cognitive Bias = Overconfidence and confirmation biases Judgment Bias = Anchoring and intuitive biases Emotional Bias = Self-serving and immediate gratification biases Statistical Bias = Sunk costs and hindsight biases</p> Signup and view all the answers

<p>Brainstorming = Generating ideas within a group context Evidence-Based Decision-Making = Using data to inform choices Avoiding Groupthink = Encouraging diverse opinions in groups Rigorous Debate = Enhancing decision quality through conflict</p> Signup and view all the answers

<p>Low Risk = High certainty in information and outcomes Moderate Risk = Some information available for estimation High Risk = Significant uncertainty in goals and outcomes Unquantifiable Risk = Lack of clear definitions for decisions</p> Signup and view all the answers

<p>Rational Decision Making = Assumes all information is available and analyzed Bounded Rationality = Recognizes limits to information processing Intuitive Decision Making = Involves instinctual choices based on past experiences Evidence-Based Decision Making = Focuses on factual data for decisions</p> Signup and view all the answers