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4. INFORMATION, MANAGEMENT & DECISION MAKING

4. INFORMATION, MANAGEMENT & DECISION MAKING. 4.1. LEARNING OBJECTIVES. EVALUATE SCHOOLS OF MANAGEMENT THINKING DESCRIBE LEVELS, TYPES, STAGES OF DECISION MAKING COMPARE INDIVIDUAL & ORGANIZATIONAL DECISION MAKING *. 4.2. LEARNING OBJECTIVES. ASSESS CHANGING MANAGEMENT PROCESS

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4. INFORMATION, MANAGEMENT & DECISION MAKING

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  1. 4. INFORMATION, MANAGEMENT & DECISION MAKING 4.1

  2. LEARNING OBJECTIVES • EVALUATE SCHOOLS OF MANAGEMENT THINKING • DESCRIBE LEVELS, TYPES, STAGES OF DECISION MAKING • COMPARE INDIVIDUAL & ORGANIZATIONAL DECISION MAKING * 4.2

  3. LEARNING OBJECTIVES • ASSESS CHANGING MANAGEMENT PROCESS • EXPLAIN HOW INFO SYSTEMS AID MANAGERS & DECISION MAKING * 4.3

  4. MANAGEMENT CHALLENGES • WHAT MANAGERS DO • INTRODUCTION TO DECISION MAKING • INDIVIDUAL MODELS OF DECISION MAKING • HOW INFORMATION TECHNOLOGY HAS CHANGED MANAGEMENT PROCESS * 4.4

  5. THREE MANAGEMENT THEORIES • TECHNICAL - RATIONAL “Classical” • BEHAVIORAL • COGNITIVE * 4.5

  6. THREE MANAGEMENT THEORIES TECHNICAL - RATIONAL “Classical”: • EMPHASIZES PRECISION OF TASK • ORGANIZES TASKS INTO JOBS • ORGANIZES JOBS INTO PRODUCTION SYSTEMS * 4.6

  7. THREE MANAGEMENT THEORIES BEHAVIORAL: • EMPHASIZES ORGANIZATION’S ADAPTATION TO EXTERNAL, INTERNAL ENVIRONMENT * 4.7

  8. THREE MANAGEMENT THEORIES COGNITIVE: • EMPHASIZES LEARNING & APPLYING KNOW-HOW, KNOWLEDGE • HOW WELL MANAGERS PROVIDE MEANING TO NEW SITUATIONS * 4.8

  9. EVOLUTION OF MANAGEMENT THEORY • CLASSICAL (1880-1927) • CONTEMPORARY (1930-1962) • POSTMODERN (1965 - present) * 4.9

  10. CLASSICAL PERIOD: • TECHNICAL-RATIONAL VIEW • TIME & MOTION STUDIES • SCIENTIFIC MANAGEMENT Planning, organizing, coordinating, deciding, controlling * 4.10

  11. CONTEMPORARY PERIOD: • SOCIAL PSYCHOLOGISTS • SOCIOLOGISTS • ORGANIZATIONAL BEHAVIORISTS Emphasized individual collective behavior * 4.12

  12. POSTMODERN PERIOD: • ECONOMISTS • SOCIOLOGISTS • MANAGEMENT THEORISTS Emphasizes knowledge basis of organizations * 4.12

  13. BEHAVIORAL MODEL OF MANAGEMENT: High-volume; high-speed work Variety; fragmentation; brevity Speculation; hearsay; gossip Complex web of interactions; contacts Prefer verbal media Control agenda * 4.13

  14. MANAGERIAL ROLES (Mintzberg): Interpersonal: figureheads & leaders Informational: receive; disseminate critical info Decisional: initiate activities; handle disturbances; allocate resources; negotiate conflicts * 4.14

  15. OPERATING PROBLEMS GENERAL MANAGER OPERATING DECISIONS CORPORATE STRATEGY Wrapp’s SUCCESSFUL MANAGER: 4.15

  16. COGNITIVE PERSPECTIVE ORGANIZATION: • Is knowing, sentient organism • Can “learn” & “know” • Success depends on learning- & knowledge processing infrastructure • Two schools * 4.16

  17. 1. MANAGERIAL SENSE-MAKING: MANAGERS: • Create mental maps • Are problem solvers, decision makers • Are information processors • Create & support information processing * 4.17

  18. 2. KNOWLEDGE-BASED VIEW OF FIRM: KNOWLEDGE: • Central productive / strategic asset • Explicit (codified); Tacit (know-how) • Includes information, social relations; know-how; skills • Change based on new information • Firm creates value by integrating specialized knowledge • Strategy: Develop core competencies * 4.18

  19. LEVELS OF DECISION MAKING • STRATEGIC:Long-term objectives; resources; policies • MANAGEMENT CONTROL:Monitor use of resources; performance • KNOWLEDGE-LEVEL:Evaluate potential innovations; knowledge • OPERATIONAL:How to carry out specific day-to-day tasks * 4.19

  20. TYPES OF DECISIONS • STRUCTURED:Repetitive; routine; definite procedure; certainty • SEMISTRUCTURED:One or more factors not structured; risk • UNSTRUCTURED:Unique; non-routine; uncertainty; requires judgment * 4.20

  21. INFO SYSTEMS, LEVELS, DECISIONS ORGANIZATIONAL LEVEL TYPE OF DECISION OPERATIONAL KNOWLEDGE MANAGEMENT STRATEGIC ACCOUNTS STRUCTURED RECEIVABLE PRODUCTION ELECTRONIC COST OVERRUNS SCHEDULING TPS SEMI- BUDGET MIS OAS STRUCTURED PREPARATION PROJECT SCHEDULING FACILITY DSS LOCATION ESS KWS UNSTRUCTURED PRODUCT DESIGN NEW PRODUCTS NEW MARKETS 4.21

  22. STAGES OF DECISION MAKING • INTELLIGENCE:Collect information; identify problem • DESIGN:Conceive alternatives; select criteria • CHOICE:Use criteria to evaluate alternatives; select • IMPLEMENTATION:Put decision into effect; allocate resources; control * SOURCE: Simon, The New Science of Management Decision (1960) 4.22

  23. INDIVIDUAL MODELS OF DECISION MAKING • RATIONAL:Comprehensive rationality; evaluate all alternatives • SATISFICING:Bounded rationality; choose first “good” alternative • MUDDLING:Successive comparison; marginal changes • PSYCHOLOGICAL:Cognitive types; manages differ in how they make choices * 4.23

  24. ORGANIZATIONAL MODELS OF DECISION MAKING • RATIONAL ACTOR:Maximize organization’s benefits • BUREAUCRATIC:Follow standard operating procedures (SOP) • POLITICAL:Key groups compete and bargain • “GARBAGE CAN”:Organizations not rational; solutions accidental * 4.24

  25. Connect to the INTERNET PRESS LEFT MOUSE BUTTON ON ICON TO CONNECT TO THE LAUDON & LAUDON WEB SITE FOR MORE INFORMATION ON THIS CHAPTER 4.25

  26. 4. INFORMATION, MANAGEMENT & DECISION MAKING 4.26

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