Podcast
Questions and Answers
What distinguishes data from information?
What distinguishes data from information?
Which attribute of useful information relates to its accuracy and reliability?
Which attribute of useful information relates to its accuracy and reliability?
In decision-making, what is the first step to resolve a discrepancy?
In decision-making, what is the first step to resolve a discrepancy?
How does ambiguity in information affect decision-making?
How does ambiguity in information affect decision-making?
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What is the primary challenge managers face regarding incomplete information?
What is the primary challenge managers face regarding incomplete information?
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Which type of decision problems becomes more common as managers ascend the organizational hierarchy?
Which type of decision problems becomes more common as managers ascend the organizational hierarchy?
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What does the process of evaluating decision effectiveness involve?
What does the process of evaluating decision effectiveness involve?
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What should a manager do if the decision criteria are not equally important?
What should a manager do if the decision criteria are not equally important?
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What type of decision is characterized by having clear procedures and guidelines based on past experiences?
What type of decision is characterized by having clear procedures and guidelines based on past experiences?
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Which condition describes a situation where the decision-maker has little or no information about alternatives or future events?
Which condition describes a situation where the decision-maker has little or no information about alternatives or future events?
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Which type of bias is illustrated by the tendency to focus on initial information and disregard later data?
Which type of bias is illustrated by the tendency to focus on initial information and disregard later data?
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In which decision-making approach are managers likely to select the first satisfactory alternative instead of the optimal solution?
In which decision-making approach are managers likely to select the first satisfactory alternative instead of the optimal solution?
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What method allows managers to generate a variety of alternatives in a collaborative environment?
What method allows managers to generate a variety of alternatives in a collaborative environment?
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Which bias involves believing that past outcomes were predictable after knowing their results?
Which bias involves believing that past outcomes were predictable after knowing their results?
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What defines a nonprogrammed decision?
What defines a nonprogrammed decision?
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Which of the following is NOT a characteristic of programmed decisions?
Which of the following is NOT a characteristic of programmed decisions?
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What is the goal of evidence-based decision-making?
What is the goal of evidence-based decision-making?
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Which of the following approaches assumes that managers will always make logical and consistent choices?
Which of the following approaches assumes that managers will always make logical and consistent choices?
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Which term refers to the specific software used to manage customer information effectively?
Which term refers to the specific software used to manage customer information effectively?
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What does the term 'satisficing' mean in decision making?
What does the term 'satisficing' mean in decision making?
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Which of the following best describes the impact of information technology on business?
Which of the following best describes the impact of information technology on business?
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What is the primary goal of a Policy in decision making?
What is the primary goal of a Policy in decision making?
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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 Useful Information
- Quality: Accuracy and reliability are crucial.
- Timeliness: Information needs to be available quickly.
- Completeness: Managers need all relevant information for good decisions.
- Relevance: Information must apply to the specific circumstances.
Incomplete Information
- Managers often lack complete information due to:
- Risk: Knowing possible outcomes with probabilities.
- Uncertainty: Unknown probabilities of outcomes.
- Ambiguity: Information with multiple interpretations.
- Time constraints & costs: Limited time and resources for exhaustive searches.
Decision Making
- Decision-making is a process with steps:
- Identify a problem.
- Define decision criteria.
- Assign weights to decision criteria (if needed).
- Develop alternatives.
- Analyze alternatives using criteria.
- Select an alternative.
- Implement the alternative.
- Evaluate decision effectiveness.
Types of Decisions
-
Programmed decisions: Routine, structured problems with established guidelines.
- Procedure: Sequential steps for well-defined problems.
- Rule: Explicit dictates on what is allowed.
- Policy: Guidelines for decision making.
-
Nonprogrammed decisions: Unique, nonrecurring problems needing custom solutions.
Conditions Affecting Decision Failure
- Certainty: Complete information is available.
- Risk: Clear goals, estimates of outcome probabilities.
- Uncertainty: Known goals, incomplete information about alternatives and future.
- Ambiguity: Unclear goals, complex alternatives, unknown outcomes.
Decision-Making Biases and Errors
- Overconfidence bias: Exaggerated self-assessment.
- Immediate gratification bias: Preference for immediate rewards.
- Anchoring effect: Fixation on initial information.
- Confirmation bias: Seeking confirming information.
- Hindsight bias: False belief of accurate prediction after the fact.
- Sunk costs error: Focusing on past expenditures instead of future outcomes.
- Self-serving bias: Taking credit for successes, blaming others for failures.
Decision-Making Approaches
Rational Decision Making
- Assumes logical, value-maximizing choices.
- Assumptions:
- Objective and logical decision-making.
- Clear problem and goal.
- Knowledge of all alternatives and consequences.
- Maximizes likelihood of achieving goals.
- Decision in organization's best interest.
Bounded Rationality
- Rational but limited by individual cognitive capacity.
- Managers cannot analyze all information or alternatives.
- Satisficing: Choosing a "good enough" solution.
Intuitive Decision Making
- Based on experience, feelings, and judgment.
- Represents quick apprehension of a situation.
- Based on years of practice and experience.
Innovative Decision Making Techniques
- Brainstorming: Generating many alternatives in a group.
- Evidence-based decision making: Using facts and evidence for better decisions.
- Rigorous debate: Constructive conflict for improved decision quality.
- Avoid groupthink: Suppressing contrary opinions.
Information Systems and Management
Information Technology (IT)
- Methods and techniques for information acquisition, organization, manipulation and transmission.
Impact of IT on Business
- Accessible office anywhere
- Improved coordination
- Leaner organizations
- Enhanced collaboration
- Global connectivity
- Improved management processes
- Flexible customizability
- New business opportunities
Information System
- Using IT resources to convert data to information.
CRM (Customer Relationship Management) Systems
- Software for compiling customer information.
ERP (Enterprise Resource Planning) Systems
- Integrating operational processes for increased productivity.
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Description
Explore the essential attributes of useful information, including quality, timeliness, completeness, and relevance. This quiz delves into how these attributes affect decision-making processes and the challenges managers face due to incomplete information.
