Chapter 13: Information and Decision-Making
● Career success requires two “must have” competencies:
o Computer competency – the ability to understand computers and to use them to their
o Information competency – the ability to use technology to locate, retrieve, evaluate,
organize, and analyze information for decision-making
● Data are raw facts and observations, while information is data made useful for decision-
● Management process of planning, organizing, leading, and controlling is driven by information.
● Information that is truly useful in management meets the test of these five criteria:
1. Timely – the information is available when needed; it meets deadlines
2. High quality – the information is accurate and it is reliable; it can be used with confidence
3. Complete – the information is complete and sufficient for the task at hand; it is current
and up to date as possible
4. Relevant – the information is appropriate for the task at hand; it is free from irrelevant
5. Understandable – the information is clear and easily understood by the user; it is free
from unnecessary detail
● Information Technology – helps us acquire, store, and process information
● Internal and external information flows are essential to problem solving and decision-making
1. Intelligence information – gathered from stakeholders and external environment
2. Internal information – flows up, down, around, and across organizations
3. Public information – disseminated to stakeholders and external environment
● Information Systems – use IT to collect, organize, and distribute data for use in decision-
● Management Information Systems – meet the information needs of managers in making
● All of the managerial roles identified by Henry Mintzberg – interpersonal, decisional, and
informational – involve communication and information processing. So do all aspects of the
management process – planning, organizing, leading, and controlling.
o Planning advantages of IT – better and more timely access to useful information,
involving more people in the planning process. o Organizing advantages of IT – more ongoing and informed communications among all
parts, improving coordination and integration.
o Leading advantages of IT – more frequent and better communication with staff and
diverse stakeholders, keep objectives clear.
o Controlling advantages of IT – more immediate measures of performance results,
allowing real-time solutions to problems.
● Problem Solving – involves identifying and taking action to resolve problems
● Success in problem solving depends on using information to make good decisions – a choice
among possible alternative courses of action.
● Managers also differ in their use of “systematic” and “intuitive” thinking during decision-
o In systematic thinking, a person approaches problems in a rational, step-by-step, and
analytical fashion. People who think like this, often break down a complex problem into
smaller parts, and then address them in a logical way.
o Someone using intuitive thinking approaches problems in a flexible and spontaneous.
People who think like this, are expected to deal with many aspects of a problem at once.
● Multidimensional Thinking – the ability to address many problems at once
● Effective multidimensional thinking requires skill at strategic opportunism.
● Strategic Opportunism – focuses on long-term objectives while being flexible in dealing with
● Cognitive styles describe the way people deal with information while making decisions.
o Sensation Thinkers tend to emphasize the impersonal rather than the personal and take
a realistic approach to problem solving. They like hard “facts,” clear goals, certainty, and
situations of high control.
o Sensation Feelers tend to emphasize both analytical and human relations. They tend to
be realistic and pref