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 ( )
CONTEMPORARY ( )
POSTMODERN ( present) *
4.9

10. 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

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

12. Emphasizes knowledge basis of organizations
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. Wrapp’s SUCCESSFUL MANAGER:
OPERATING PROBLEMS
GENERAL MANAGER
OPERATING DECISIONS
CORPORATE STRATEGY
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:
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
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

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