IT 262 PRINCIPLES OF MANAGEMENT CHAPTER 4 Week 3 TOPIC: INFORMATION AND DECISION MAKING

Learning Objectives Discuss the role of technology in the workplace. Discuss the significance of managerial decision making. Identify the major types of problems faced by decision makers Distinguish between programmed and non-programmed decision. Describe each step of the decision making process. Weigh the advantages and disadvantages of group decision making. Describe some of the techniques used for improving group creativity. Discuss what knowledge management is. 1. Define Management 2. Explain 4 functions of management and explain elements in the process. 3. Describe what managers do and 10 major roles they play. 4. Explain 3 major types of skills needed by managers. 5. Distinguish between effectiveness and efficiency as it relate to performance. 6. Describe how managerial jobs differ according to hierarchical level

Enhancing group decision making Information and Decision Making Role of technology at the workplace Types of Managerial Decisions Steps in Decision Making Knowledge Management Case Study 4.1 Group Decision Making Enhancing group decision making

Role of technology in the workplace Technology is changing the way businesses are selling goods and services. Traditionally, selling goods and products in retail shops. Now, online sales system are used. Pacific Island context Booking at Tanoa and Scenic Hotel, not only target local customers and tourists but also international consumers. Lunaéva’s online store This online transaction system allows consumers to buy products online by using their credit cards.

How businesses use information technology at their workplace? Storage: Store large amounts of data in their computer Industry Information Communication: Send emails Understand markets Improve productivity and reduce defects

1. Improve Productivity and Reduce Defects Introduction of IT, businesses are now able to improve service delivery. Eg. Printing industry , Designing flyers, brochures, wedding cards and birthday cards. Make numerous copies of artwork and product. Makes our work easier by improving employees productivity. Eg.Preparing reports and powerpoint presentations. 2. Data storage device Reduce cost and space associated with storing information in storage rooms. Eg.filing system Disadvantage of storage rooms – Difficult to locate information and costly.

3. Acquire Industry Information Getting information on competitors by using information computer technology. Information is free and readily available on competitors websites Information on products and services that your competitor provides, prices of goods and services and annual reports 4. Improve communication Using email to communicate with customers Use computers to market their product and services 5. Understand Market Using computer to understand needs and wants of consumers by providing feedback and complaints

Two types of Managerial Decisions Managers at different levels make decisions and have different degrees of importance to the organisation. They also face different types of problems. If they come across a problem they have encountered before, they have to come up with a non-programmed decision. If they are faced with a problem that comes up every now and then, they could easily make a programmed decision. 1. Programme Decision: are those made in routine, repetitive, well- structured situations through the use of predetermined decision rules. 2. Non-Programmed Decision: are made in respond to unusual opportunity or threats. Basically, these situations are unique, are poorly defined and largely unstructured.

Steps in Effective Decision Making Process Step 1: Identify and define the problem Step 2: Generate/Evaluate possible solutions Step 3:Consider carefully and choose a solution Step 4: Implement the solution Step 5: Evaluate the results

Steps in Effective Decision Making Process Description Identify and define the problem Managers need to understand and define the problem. Gather related information Managers common mistakes: Managers focusing on symptoms rather causes eg. Small business in Tuvalu, a drop in performance is a symptom, lack of motivation can be a cause fo the problem. Generate/ Evaluate solutions Determine possible solutions Examine pros and cons Select the right solution

Steps in Effective Decision Making Process Description Choose a solution Choose solution based on available resources Managers should take responsibility for the selection solution Solution should be beneficial for everyone in the organisation Eg. Small business in Tuvalu, problem - decline profitability. Solutions – invest in training and development, motivate staff and reduce defective products. Out of the 3, manager chose to motivate staff rather than train them. Implement the solution Actions are taken. Eg. Director of small business will have to relook at human resource management policies on rewarding staff. Evaluate the results Managers should evaluate impact of solution on the organisation.

Group Decision Making Def: is a type of participatory process in which multiple individuals acting collectively, analyze problems or situations, consider and evaluate alternative courses of action, and select from among the alternatives a solution or solution

Group Decision Making (cont) Advantages Disadvantages More information, expertise and knowledge. More people involved from different background and different area of expertise which inevitably lead to a better decision. More alternatives are developed Greater alternatives and acceptance of final decision Time consuming especially if there’s a major disagreement among members. Final decision could easily compromise which is not always the BEST decision. A danger of being dominated by one member. If bitter disagreements should arise, members could develop hard feelings that could affect future relations and might lead to a decline in productivity in the workplace.

Enhancing Group Decision Making How? Involve in the group those who are directly concerned with the problem at hand. Involve in the group those who will implement the decision. Consider the composition of the group. Eg. Companies board of directors. The wider the range of perspectives on the problem at hand, the better the decision.