Lesson 2 Flashcards
Managers must have….
- Technological competency
- Information competency
- Analytical competency
Technological competency:
Ability to understand new technologies and to use them to their best advantage
Information competency:
Ability to locate, gather, organize, and display information for decision-making and problem solving
Analytical competency:
Ability to evaluate and analyze information to make actual decisions and solve real problems
What is useful information?
- Data (raw facts)
- Information (data made useful)
Information drives management decision-making
Characteristics of useful information:
- Timely
- High quality
- Complete
- Relevant
- Understandable
Management Information System:
Using the latest technologies to collect, organize, and distribute data
Data mining:
The process of analyzing data to produce useful information for decision-makers
Big data:
Exists in huge quantities and is difficult to process without sophisticated mathematical and analytical techniques
Management analytics:
Involves the systematic evaluation
and analysis of data to make informed decisions
Business Intelligence:
Taps information systems to extract and report data in organized ways that are useful to decision-makers
Data Visualization:
Visually update and display key performance metrics and information on a real-time basis through executive dashboards
Information exchanges with the external environment:
- Gather intelligence information
- Provide public information
Information exchanges within the organization:
- Facilitate decision- making
- Facilitate problem- solving
The 5 V’s of Data:
- Volume
- Variety
- Veracity
- Velocity
- Value
Volume:
Data has to exist in large, like google searches
Variety:
Data from social media, news
Veracity:
Should be believable and not misleading
Velocity:
Should represent what really is happening
Value:
Big data have to be worth time/effort
Managers as Information Processors:
Continually gather, share, and receive information
Internal and external information needs in organizations:
- External environment - gather intelligence info, provide public info
- Gather intensive information
- Provide public information
Problem solving:
The process of identifying a discrepancy between actual and desired performance and taking action to resolve it
Decision:
A choice among possible alternative courses of action
Performance threat:
Something is wrong or has the potential to go wrong
Performance opportunity:
Situation offers the chance for a better future if the
right steps are taken
Problem avoiders:
Inactive in information gathering and solving problems
Problem solvers:
Reactive in gathering information and solving problems
Problem seekers:
Proactive in anticipating problems and opportunities
and taking appropriate action to gain an advantage
Systematic thinking:
Approaches problems in a rational, step-by-step, and
analytical fashion
Intuitive thinking:
Approaches problems in a flexible and spontaneous fashion
Multi-dimensional thinking:
Applies both intuitive and systematic thinking
(View many problems at once, focused on long-term objectives, flexible to resolve short-term problems)
Effective multi-dimensional thinking requires skill at __________
strategic opportunism
Structured problems:
Ones that are familiar, straightforward, and clear with respect to information
needs
Programmed decisions:
Apply solutions that are readily
available from past experiences to solve structured problems
Unstructured problems:
Ones that are full of ambiguities and information deficiencies
Non-programmed decisions apply a specific solution to ________
meet the demands of a unique problem
A crisis:
Involves an unexpected problem that can lead to disaster if not resolved quickly and appropriately
Rules for crisis management:
- Figure out what is going on - take time to understand
- Remember that speed matters - attack it quickly
- Remember that slow counts too - know when to back off
- Respect the danger of the unfamiliar - understand the danger
- Value the sceptic - don’t get too comfortable w/agreement
- Be ready to “fight fire with fire ” - when things go wrong, get creative
Certain environment:
Offers complete factual information on possible action alternatives and their consequences
Risk environment:
Lacks complete information but offers probabilities of the
likely outcomes for possible action alternatives
Uncertain environment:
Lacks so much information that it is difficult to assign probabilities to the likely outcomes of alternatives
The Decision-Making Processes:
- Identify and Define the problem
- Generate and Evaluate alternative solutions
- Choose a preferred course of action
- Implement the decision
- Evaluate the results
What happens in the “Identify and Define the problem” stage:
Focuses on information gathering, information processing, and deliberation
What happens in the “Generate and Evaluate alternative courses of action” stage:
Potential solutions are formulated and more information is gathered, data are analyzed, the advantages and disadvantages of alternative solutions are identified
What happens in the “Decide on a preferred course of action” stage”
Two different approaches
- Classical model leads to optimizing decisions
- Behavioral model leads to satisficing decisions
What happens in the “Implement the decision” stage:
Involves taking action to make sure the solution decided upon becomes a reality
________________ should be avoided
Lack-of-participation error
What happens in the “Evaluate results” stage:
Involves comparing actual and desired results (Positive and negative consequences of chosen course of action should be examined)
Availability Bias:
Bases a decision on recent information or events
Representativeness Bias:
Bases a decision on similarity to other situations
Anchoring and Adjustment Bias:
Bases a decision on incremental adjustment from a prior
decision point
Framing Error:
Trying to solve a problem in the context perceived, positive
or negative
Confirmation Error:
Focusing on information that confirms a decision already
made
Escalating Commitment:
Continuing a course of action even though it is not working
