Podcast
Questions and Answers
Which of the following is characteristic of nonprogrammed decisions?
Which of the following is characteristic of nonprogrammed decisions?
What does certainty in decision-making conditions imply?
What does certainty in decision-making conditions imply?
Which decision-making bias involves fixating on initial information?
Which decision-making bias involves fixating on initial information?
What best describes the rational decision-making approach?
What best describes the rational decision-making approach?
Signup and view all the answers
Which scenario exemplifies the sunk costs error?
Which scenario exemplifies the sunk costs error?
Signup and view all the answers
Which statement about evidence-based decision-making is true?
Which statement about evidence-based decision-making is true?
Signup and view all the answers
What is a primary purpose of Customer Relationship Management (CRM) systems?
What is a primary purpose of Customer Relationship Management (CRM) systems?
Signup and view all the answers
What is an effect of bounded rationality in decision-making?
What is an effect of bounded rationality in decision-making?
Signup and view all the answers
Which of the following best represents groupthink?
Which of the following best represents groupthink?
Signup and view all the answers
Which of the following embodies the main goal of innovative decision-making techniques?
Which of the following embodies the main goal of innovative decision-making techniques?
Signup and view all the answers
What characterizes information that is considered high quality?
What characterizes information that is considered high quality?
Signup and view all the answers
Which of the following describes a characteristic of incomplete information in decision-making?
Which of the following describes a characteristic of incomplete information in decision-making?
Signup and view all the answers
Which step is NOT part of the decision-making process?
Which step is NOT part of the decision-making process?
Signup and view all the answers
How should managers prioritize decision criteria when they differ in importance?
How should managers prioritize decision criteria when they differ in importance?
Signup and view all the answers
What type of problems do managers typically face as they advance in an organizational hierarchy?
What type of problems do managers typically face as they advance in an organizational hierarchy?
Signup and view all the answers
What is the significance of timeliness in the context of information?
What is the significance of timeliness in the context of information?
Signup and view all the answers
Which of the following best describes programmed decisions?
Which of the following best describes programmed decisions?
Signup and view all the answers
What is the primary challenge of ambiguity in decision-making?
What is the primary challenge of ambiguity in decision-making?
Signup and view all the answers
Which of the following alternatives must be considered in decision-making?
Which of the following alternatives must be considered in decision-making?
Signup and view all the answers
What factor influences completeness in information availability?
What factor influences completeness in information availability?
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.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
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.