Understanding Data vs. Information
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Questions and Answers

Which of the following is characteristic of nonprogrammed decisions?

  • They involve routine, repetitive situations.
  • They follow a predetermined series of steps.
  • They require custom-made solutions to unique problems. (correct)
  • They are based on established rules and policies.
  • What does certainty in decision-making conditions imply?

  • The decision-maker has complete knowledge of the required information. (correct)
  • There is a high level of ambiguity concerning goals.
  • Only partial information about outcomes is available.
  • The problem is complex, making decision-making challenging.
  • Which decision-making bias involves fixating on initial information?

  • Immediate gratification bias
  • Hindsight bias
  • Confirmation bias
  • Anchoring effect (correct)
  • What best describes the rational decision-making approach?

    <p>It assumes decision-makers have access to all possible information.</p> Signup and view all the answers

    Which scenario exemplifies the sunk costs error?

    <p>Continuing with a project due to substantial past investment despite poor prospects.</p> Signup and view all the answers

    Which statement about evidence-based decision-making is true?

    <p>It emphasizes making informed decisions based on the best available facts.</p> Signup and view all the answers

    What is a primary purpose of Customer Relationship Management (CRM) systems?

    <p>To compile customer information for relationship monitoring.</p> Signup and view all the answers

    What is an effect of bounded rationality in decision-making?

    <p>Decision-makers settle for satisfactory options rather than ideal ones.</p> Signup and view all the answers

    Which of the following best represents groupthink?

    <p>Suppressing dissenting viewpoints in group discussions.</p> Signup and view all the answers

    Which of the following embodies the main goal of innovative decision-making techniques?

    <p>To generate a wide range of alternatives and encourage collaboration.</p> Signup and view all the answers

    What characterizes information that is considered high quality?

    <p>It demonstrates consistency, accuracy, and reliability.</p> Signup and view all the answers

    Which of the following describes a characteristic of incomplete information in decision-making?

    <p>It stems from risk, uncertainty, and ambiguity.</p> Signup and view all the answers

    Which step is NOT part of the decision-making process?

    <p>Engage in team-building exercises.</p> Signup and view all the answers

    How should managers prioritize decision criteria when they differ in importance?

    <p>Allocate weights to the criteria.</p> Signup and view all the answers

    What type of problems do managers typically face as they advance in an organizational hierarchy?

    <p>Less structured problems.</p> Signup and view all the answers

    What is the significance of timeliness in the context of information?

    <p>Information must be timely to be effective in decision-making.</p> Signup and view all the answers

    Which of the following best describes programmed decisions?

    <p>They are based on established guidelines or rules.</p> Signup and view all the answers

    What is the primary challenge of ambiguity in decision-making?

    <p>It can lead to multiple interpretations of information.</p> Signup and view all the answers

    Which of the following alternatives must be considered in decision-making?

    <p>Developing multiple alternatives.</p> Signup and view all the answers

    What factor influences completeness in information availability?

    <p>Time constraints and costs associated with searching.</p> Signup and view all the answers

    Study Notes

    Data vs. Information

    • Data is raw, unanalyzed facts.
    • Information is processed and analyzed data.

    Attributes of Useful Information

    • Quality: Accuracy and reliability are crucial for high-quality information.
    • Timeliness: Information often needs to be accessible in real-time.
    • Completeness: Comprehensive information allows for effective control, coordination, and decision-making.
    • Relevance: Information needs to be relevant to the manager's specific needs.

    Incomplete Information

    • Managers face limitations in accessing complete information due to:
      • Risk: Known possible outcomes with assigned probabilities.
      • Uncertainty: Unknown probabilities of outcomes.
      • Ambiguity: Information that can be interpreted in multiple conflicting ways.
      • Time constraints and information costs: Limited time and resources for extensive research.

    Decision Making

    • Decision making involves steps:

      • Identify the problem (discrepancy).
      • Identify decision criteria.
      • Allocate weights to criteria if prioritizing.
      • Develop alternatives.
      • Analyze alternatives using criteria.
      • Select an alternative.
      • Implement the decision.
      • Evaluate the decision's effectiveness.
    • Structured problems are straightforward and defined.

    • Unstructured problems are new and unusual.

    • Programmed decisions are previously made based on established guidelines.

      • Procedure: Sequential steps for solving structured problems.
      • Rule: Explicit statement defining permissible actions.
      • Policy: Guideline for decision-making.
    • Nonprogrammed decisions are unique and require custom solutions.

    Conditions Affecting Decision Failure

    • Certainty: Complete information availability.
    • Risk: Clear goals, estimations of successful vs. failed outcomes.
    • Uncertainty: Known goals, incomplete information on alternatives/future events.
    • Ambiguity: Unclear goals, difficult-to-define alternatives, unavailable outcome information.

    Decision-Making Biases and Errors

    • Overconfidence bias: Overestimating knowledge or performance.
    • Immediate gratification bias: Prioritizing immediate rewards.
    • Anchoring effect: Reliance on initial information, ignoring subsequent data.
    • Confirmation bias: Favoring information confirming existing choices.
    • Hindsight bias: Falsely predicting outcome knowledge.
    • Sunk cost error: Focusing on past expenditure rather than future consequences.
    • Self-serving bias: Taking credit for success, blaming others for failure.

    Decision-Making Approaches

    • Rational decision-making: Logical and consistent choices maximizing value.

      • Assumptions of rationality: Objective, clear problem, clear goal, knowledge of alternatives/consequences.
    • Bounded rationality: Rational but limited by information processing.

      • Satisficing: Accepting satisfactory rather than optimal solutions.
    • Intuitive decision-making: Decisions based on experience, feelings, and judgments.

    Innovative Decision-Making Techniques

    • Brainstorming: Group interactive session for generating diverse alternatives.
    • Evidence-based decision-making: Relying on best available facts and evidence.
    • Rigorous debate: Constructive conflict promotes better decision-making.
    • Avoid groupthink: Preventing suppression of contrary opinions.

    Information Systems and Management

    • Information Technology (IT): Methods for acquiring, organizing, manipulating, and transmitting information.
    • Impact of IT on business: Portable offices, better service, leaner organizations, increased collaboration, global exchange, improved management, customization, new business opportunities.
    • Information system: Using IT to convert data to information, processing, and transmission for decision-making.
    • CRM: Software for compiling customer information to monitor and measure interactions.
    • ERP: Integrating operational and business processes for increased organizational productivity.

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    Description

    This quiz explores the distinction between data and information, highlighting the essential attributes that make information useful for decision-making. It covers challenges such as incomplete information and the impact of quality, timeliness, relevance, and uncertainty on managerial decisions.

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