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Management - Chapter 6: The Decision Making Process

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What is the role of information in the management process? How do managers use information to make decisions? What are the steps in the decision-making process? What are the current issues in managerial decision making?

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Nội dung Text: Management - Chapter 6: The Decision Making Process

PowerPoint Presentation to Accompany Management, 10/e John R. Schermerhorn, Jr. Chapter 6: The Decision Making Process Prepared by: Jim LoPresti University of Colorado, Boulder Published by: John Wiley & Sons, Inc.
Planning Ahead — Chapter 6 Study Questions  What is the role of information in the management process?  How do managers use information to make decisions?  What are the steps in the decision making process?  What are the current issues in managerial decision making? Management 10/e Chapter 6 2
Study Question 1:What is the role of information in the management process?  Information and knowledge — basic linkages:  Knowledge and knowledge workers provide a decisive competitive factor in today’s economy.  Knowledge worker.  Someone whose value to the organization rests with intellect, not physical capabilities.  Intellectual capital.  Shared knowledge of a workforce that can be used to create wealth. Management 10/e Chapter 6 3
Study Question 1:What is the role of information in the management process?  Information and knowledge — basic linkages (cont.)  Knowledge and intellectual capital are irreplaceable organizational resources.  The productivity of knowledge and knowledge workers depends on:  Computer competency.  Information competency. Management 10/e Chapter 6 4
Figure 6.1 Internal and external information needs of an organization Management 10/e Chapter 6 5
Study Question 1:What is the role of information in the management process?  Implications of IT within organizations: Facilitation of communication and information sharing. Operating with fewer middle managers. Flattening of organizational structures. Faster decision making. Increased coordination and control. Management 10/e Chapter 6 6
Study Question 1: What is the role of information in the management process?  What is useful information?  Data.  Raw facts and observations.  Information.  Data made useful for decision making.  Information drives management functions.  Characteristics of useful information:  Timely.  High quality.  Complete.  Relevant.  Understandable. Management 10/e Chapter 6 7
Study Question 1:What is the role of information in the management process?  Implications of IT for relationships with external environment: Helps with customer relationship management. Helps organizations with supply chain management. Helps in monitoring outsourcing and other business contracts. Management 10/e Chapter 6 8
Figure 6.2 Information technology is breaking barriers and changing organizations. Management 10/e Chapter 6 9
Study Question 1: What is the role of information in the management process?  Information needs of organizations. Information exchanges with the external environment:  Gather intelligence information.  Provide public information. Information exchanges within the organization:  Facilitate decision making.  Facilitate problem solving. Management 10/e Chapter 6 10
Study Question 1: What is the role of information in the management process?  Basic information system concepts: Information system.  Use of the latest IT to collect, organize, and distribute data for use in decision making. Management Information System (MIS).  Specifically designed to meet the information needs of managers in daily decision making. Management 10/e Chapter 6 11
Study Question 2: How do managers use information to make decisions?  Managerial advantages of IT utilization:  Planning advantages.  Better and more timely access to useful information.  Involving more people in planning.  Organizing advantages.  More ongoing and informed communication among all parts of the organization.  Improved coordination and integration. Management 10/e Chapter 6 12
Study Question 2: How do managers use information to make decisions?  Managerial advantages of IT utilization (cont.):  Leading advantages.  Improved communication with staff and stakeholders.  Keeping objectives clear.  Controlling advantages.  More immediate measures of performance results.  Allows realtime solutions to performance problems. Management 10/e Chapter 6 13
Figure 6.3 The manager as an information- processing nerve center. Management 10/e Chapter 6 14
Study Question 2: How do managers use information to make decisions?  A performance deficiency  Actual performance being less than desired performance.  A performance opportunity  Actual performance being better than desired performance.  Problem solving  The process of identifying a discrepancy between actual and desired performance and taking action to resolve it.  A decision  A choice among possible alternative course of action. Management 10/e Chapter 6 15
Study Question 2: How do managers use information to make decisions?  Problemsolving approaches or styles:  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. Management 10/e Chapter 6 16
Study Question 2: How do managers use information to make decisions?  Systematic versus intuitive thinking.  Systematic thinking approaches problems in a rational, stepbystep, and analytical fashion.  Intuitive thinking approaches problems in a flexible and spontaneous fashion.  Multidimensional thinking applies both intuitive and systematic thinking.  Effective multidimensional thinking requires skill at strategic opportunism. Management 10/e Chapter 6 17
Study Question 2: How do managers use information to make decisions?  Cognitive styles.  Sensation Thinkers emphasize the impersonal rather than the personal and take a realistic approach to problem solving.  Intuitive Thinkers are comfortable with abstraction and tend to be idealistic. spontaneous fashion.  Intuitive Feelers prefer broad and global issues and are comfortable with intangibles.  Sensation Feelers emphasize analysis and human relations and tend to be realistic and prefer facts. Management 10/e Chapter 6 18
Study Question 2: How do managers use information to make decisions?  Programmed decisions.  Apply solutions that are readily available from past experiences to solve structured problems.  Structured problems are ones that are familiar, straightforward, and clear with respect to information needs.  Best applied to routine problems that can be anticipated. Management 10/e Chapter 6 19
Study Question 2: How do managers use information to make decisions?  Nonprogrammed decisions.  Develop novel solutions to meet the demands of unique situation that present unstructured problems.  Unstructured problems are ones that are full of ambiguities and information deficiencies.  Commonly faced by higherlevel management. Management 10/e Chapter 6 20

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