BUS 237 Chapter Notes - Chapter 8: Cluster Analysis, Decision-Making, Olap Cube
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BUS 237 Full Course Notes
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Decision making and business intelligence: for business managers, decision making or choosing from a range of alternatives is the essence of management, decision making process is much more complicated for three reasons: The concept of rationality is hard to define. Good outcomes may occasionally result from irrational processes, and bad outcomes can result from good processes. Humans intend to be rational, but there are limits on our cognitive capabilities. This is called bounded rationality: herbert simon suggested that we must satisfice, that is, choose the most reasonable and available solution rather than the perfect choice. This theory suggested that designers of mis make several erroneous assumptions about managerial decision making. Theorized by russell ackoff: the first assumption is that managers will have no problem making decisions if they get data they need. Ackoff countered that for most managers, too many possibilities exist; they should not expect to make better decisions even with perfect data.