1. BA 5201 Organization and Management Information and organizational decision making Instructor: Ça ğ rı Topal 1

2. Information Organizations as information processors Input for decision making Valuable if useful Relevance, quality, richness, quantity, timeliness, accessibility, and symbolic value 2

3. Relevance Relevance to the core technology and operation of the organization What information is relevant To whom in the organization the information is relevant Information related to task environment Business units or departments whose domains of operation are directly affected by the information Information for strategic decisions 3

4. Quality Whether the information accurately represents reality Balancing the cost of acquiring information and of acting on erroneous information Type I error: when information is accepted as true when it is actually false Type II error: when the organization accepts as false something that is actually true Unknown-unknown Known-unknown 4

5. Information richness Carrying capacity of a particular method of conveying information Written less richer, spoken relatively rich, face-to-face much richer Important for lower-analyzability tasks, higher levels of hiearchy, and clan control systems 5

6. Quantity Amount of information Not too much or too little Assumptions when lack of enough information 6

7. Timeliness Time value of recent information Ability to obtain information soon enough to take or not take action Untimely information and opportunity cost 7

8. Accessibility Relative ease of obtaining information Likely to be more important than quality in practice Reasons for using available sources Less costly Structural necessity Rewarding system Trustworthiness 8

9. Symbolic value Prestige or status due to access to information Not practicality Strategic plans and symbolic control Being or not being in the “information loop” 9

10. Management information system Gathering information Reporting information Analyzing information Accepting information Storing information Retrieving information Using information 10

11. Decision making models Rational decision making Perfect and unbiased information at no cost Perfect rationality Utility-maximizing decisions Linear process: problem identification or recognition, determining the desired outcome, collecting the data, developing alternative solutions, assessing and choosing a utility-maximizing solution or solutions, and implementing the decision 11

12. Decision making models Bounded rational decision making Boundaries on ability to be rational Uncertainty and imperfect information Cost of information Time constraints Limited and biased cognition Compromise and power Satisficing decisions 12

13. Decision making models Garbage can decision making-1 Nonlinear process Solutions preceding problems Problems invented for existing solutions Decisions not solving problems Solutions for less important problems Inconsistent solutions Complex process and multiple decisions 13

14. Decision making models Garbage can decision making-2 Organizational anarchy Ambiguous and conflicting goals Ambiguous means Fluid participation Descriptive model 14