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Lecture 2

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Global Management Studies
GMS 200
Masoomeh Moharrer

May 2 2012 Chapter 13: Information and Decision Making Lecture 2 continued…. Problem Solving is coming up with potential ways to come up with a result Decision Making is from the options made in Problem solving choosing one option to follow. Data vs Information - Data is raw collected information. Raw facts and observation o Can be processed to create useful information o View of past (rise-fall) o Helps better decisions in future o Useful for generating graphs, reports and stats o - Information: Data made useful and meaningful for decision making. o The manipulated and processed form of data o Used for making decision  Information drives management functions – Census data generates different information- literacy rate. Customer’s data. Characteristics of useful information: - Timely- available when needed - High quality: accurate and reliable - Complete: and sufficient for problem at hand - Relevant: appropriate for the task at hand - Understandable: easily understandable and clear Discuss: - Examples of data - Examples of useful and useless information Information Technology - How does information Technology help managers o Acquire o Store o Process o Analyze o Transmit Information What is the purpose of receiving and sending information to external environment? - By law (packaging) What is the role of exchanging information inside the organization? - For decision making Role of Information Technology in the organization - Facilitation of communication and information sharing - Operating with fewer middle managers - Flattening of organizational structures - Faster decision making - Increased coordination and control. Figure 13.2 Management Information Systems - Information system o Use of the latest IT to collect, organize, and distribute data for use in decision making. - Management information system (MIS) o Specifically designed to meet the information needs of managers in daily decision making. Problem Solving in Organizations: - Problem Solving o The process of identifying a discrepancy between actual and desired performance and taking action to resolve it. - A decision o A choice among possible alternative course of action. Types of Managers- Problem Solving approaches - Managers are different in their openness to problems solving: o Problem avoiders  Inactive in information gathering and solving problems o Problem Solvers  Reactive in gathering information and solving problems o Problem seekers  Proactive in anticipating problems and opportunities and taking appropriate action to gain an advantage. Systematic vs intuitive thinking and multidimensional - Systematic thinking: approaches problem in a rational, step by step, and analytical fashion - Intuitive thinking: approaches problems in a flexible and spontaneous fashion- creative - Multidimensional thinking applies both intuitive and systematic thinking. Programmed decisions: - Structural problems: are ones that are familiar, straightforward, and clear with respect to information needs. They are predictable issues o RepeatProgrammed o Programmed decisions:  Apply solutions that are readily available from past experiences to solve structured problems.  Best applied to routine problems that can be anticipated  Example: Quantities to produce each day. Non-programmed decisions - Unstructured problems: are full of ambiguities and information deficiencies o Non-programmed decisions:  Develop novel solutions to meet the demands of unique situation that present unstructured problems  New, unusual situation, uncertain  Commonly faced by higher level management  Example: which global markets provide the most potential. Discussion: Write 2 programmed and nonprogrammed decisions and which level of manager is responsible. - Lower manager that does scheduling - Middle manager that does ordering for a product - Top Management: did not see a recession coming requiring cuts - Top management: Supplier going out of business - Top Management: medial Scandal Crisis Decision Making: - A crisis involves an unexpected problem that can lead to disaster if not resolved quickly and appropriately o The ultimate test of manager’s problem solving capability o Common mistake: isolating themselves (solve alone or in small group. Denies access to crucial information and assistant at needed time. Crisis Decision Making: - Rules for crisis management: o Figure out what is going on o Remember that speed matters o Remember that slow counts, too o Respect the danger of the unfamiliar o Value the skeptic o Be read to fight fire with fire - Aspect of Crisis management: o Anticipation o Preparation Decision environments or decision condition: - Certain environments: o Offer complete information about possible action alternatives and their utcomes - Risk environments o Lack complete information about action alternatives and their consequences, but offer some estimates of probabilities of outcomes for possible action alternatives - Uncertain environments o Information is so poor that probabilities cannot be assigned to likely outcomes of known action alternatives. May 7 2012 Lecture 3 5 Steps of decision making: - Find and define the problem o Focuses on information gathering, information processing, and deliberation o Establish objectives o Common problems when defining the problem  Defining the problem too broadly or too narrowly  Focusing on symptoms instead of causes. (example= medicine)  Choosing the wrong problem. - Generate and evaluate alternative solutions o Identify alternative courses of action o Anticipate conse
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