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 EXPLAIN HOW INFO SYSTEMS AID MANAGERS & DECISION MAKING * 4.3

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

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

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

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

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

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

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

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

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

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

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

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

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

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

2. KNOWLEDGE-BASED VIEW OF FIRM: 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

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

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

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

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

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

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

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4. INFORMATION, MANAGEMENT & DECISION MAKING 4.26