GMS 200 Lecture Notes - Lecture 2: Knowledge Worker, E-Commerce, Intellectual Capital
DepartmentGlobal Management Studies
Course CodeGMS 200
Chapter 13 lecture 2 Information and Decision Making
Chapter 13 study questions.
How is information technology changing the workplace?
What is the role of information in the management process?
How do managers use information to make decisions?
What are the steps in the decision-making process
What are the current issues in managerial decision making?
Information and Knowledge
- Do you want to become a knowledge worker and why ?
- Intellectual capital
- shared knowledge of a workforce that can be used to create wealth .
- The productivity and knowledge workers depend on computer and information competency
- What can managers do to enhance the productivity of knowledge workers.
The process of buying and selling good and services electronically through use of the internet.
What are the implications of IT within organizations?
See figure 13.1 ( 7.1 in old textbook)
What is useful Information?
- What are the differences between data and information?
- What are the characteristics of useful information?
Information needs of organizations.
What are the benefits of increasing information exchanges with the external environment?
What are the benefits of increasing information exchanges within the organizations ?
Basic information system concepts
- Info system
- Management info system ( MIS)
- Decision support systems
Managerial advantages of IT utilization:
-utilize the information gained to make decisions in all phases of the management process – planning, organizing, leading, and controlling
A Decision is..
- A choice among possible alternative course of action.
Crisis decision making
- Certain environments
- Risk environments
- Uncertain environments
- See figure 7.4 (13.4) Three environments for managerial decision making and problem solving.
PROBLEM SOLVING STYLES
- Problem avoiders
- Problem solvers
- Problem seekers
Systematic versus intuitive thinking.
- Systematic thinking approached problems in a rational, step-by-step, and analytical fashion
- Intuitive thinking approaches problems in a flexible and spontaneous fashion.
- What is your style of thinking ?
- see figure 7.5 (13.5) -
- Ajax had decided to close its plant because of poor market conditions. A buyer could not be found.
Step 1: identify and define the problem. Closing the plant would put all 172 employees out of work, and negatively
impact their families and the local community. The loss of the Ajax tax base would further hurt the community.
Step 2: generate and evaluate possible solutions.
1. Simply closing the plant on schedule
2. Delaying the plant closing until all efforts have been made to sell it to another firm
3. Offering to sell the plant to the employees and/or local interests
4. Closing the plant and offering transfers to other Ajax plants.
5. Closing the plant, offering some transfers, and helping employees find new jobs in the local area.
Step 3: choose a preferred solution.
Step 4: implement the decision. Ajax ran an ad in the local newspapers for 15 days at a cost of 2600 dollars informing
local employees of the skills and availability of the firm’s employees.
Step 5: Evaluate results. A substantial number of Ajax’s employees were able to relocate in new jobs in the Southern
See figure 13.6 (7.6) Difference in the classical and behavioral models of managerial decision making.
- Simplifying strategies for making decisions when faced with limited time, information, and energy.
- Availability heuristic
- Representativeness heuristic
- Anchoring and adjustment heuristic.
- “if at first you don’t succeed, try, try again”
- “if at first you don’t succeed, try, try again, then quit”
Individual decision vs. group decision
Do group decisions always end up better than individual decisions?
Ethical decision making
- “ethics double check”
- How would I feel if my family found out about this decision?
- How would I feel if this decision were published in the local newspaper?
Chief Knowledge officer (CKO)
Knowledge management requires a culture that values learning fosters a learning organization.
See figure 13.3(7.3) the manager as an information- processing nerve center.