Chapter 7: Data and Decision-Making

Comprehensive vocabulary flashcards covering managerial competencies, data analysis, problem-solving styles, decision environments, the decision-making process, heuristic biases, and creativity drivers from Chapter 7: Data and Decision-Making.

Technological competency

The ability to understand new technologies and to use them to their best advantage.

Information competency

The ability to locate, gather, organize, and display information for decision-making and problem solving.

Analytical competency

The ability to evaluate and analyze information to make actual decisions and solve real problems.

Data

Raw facts and observations.

Information

Data made useful and meaningful for decision-making.

Characteristics of useful information

Information that is timely, of high quality, complete, relevant, and understandable.

Management Information System (MIS)

The use of the latest technologies to collect, organize, and distribute data.

Data mining

The process of analyzing data to produce useful information for decision-makers.

Big data

Data that exist in huge quantities and are difficult to process without sophisticated mathematical and analytical techniques.

Management analytics

The systematic evaluation and analysis of data to make informed decisions.

Business Intelligence

An approach that taps information systems to extract and report data in organized ways that are useful to decision-makers.

Data Visualization

The visual updating and displaying of key performance metrics and information on a real-time basis through executive dashboards.

Intelligence information

Information gathered from stakeholders and the external environment.

Public information

Information disseminated to stakeholders and the external environment.

Internal information

Information that flows up, down, around, and across organizations.

Problem solving

The process of identifying a discrepancy between actual and desired performance and taking action to resolve it.

Decision

A choice among possible alternative courses of action.

Performance threat

A situation where something is wrong or has the potential to go wrong.

Performance opportunity

A situation that offers the chance for a better future if the right steps are taken.

Problem avoiders

Managers who are inactive in information gathering and solving problems.

Problem solvers

Managers who are reactive in gathering information and solving problems.

Problem seekers

Managers who are proactive in anticipating problems and opportunities and taking appropriate action to gain an advantage.

Systematic thinking

Approaching problems in a rational, step-by-step, and analytical fashion.

Intuitive thinking

Approaching problems in a flexible and spontaneous fashion.

Multi-dimensional thinking

A mode of thinking that applies both intuitive and systematic thinking.

Strategic opportunism

The skill of remaining focused on long-term objectives while being flexible to resolve short-term problems.

Sensation Thinkers (STs)

Cognitive thinkers who evaluate information by thinking and process information by sensing, liking facts and goals.

Intuitive Thinkers (ITs)

Cognitive thinkers who evaluate information by thinking and process information by intuition, characterized as idealistic and theoretical.

Sensation Feelers (SFs)

Cognitive thinkers who evaluate information by feeling and process information by sensing, liking facts and feelings.

Intuitive Feelers (IFs)

Cognitive thinkers who evaluate information by feeling and process information by intuition, characterized as thoughtful and flexible.

Structured problems

Problems that are familiar, straightforward, and clear with respect to information needs.

Programmed decisions

Decisions that apply solutions readily available from past experiences to solve structured problems.

Unstructured problems

Problems that are full of ambiguities and information deficiencies.

Non-programmed decisions

Decisions that apply a specific solution to meet the demands of a unique problem, commonly faced by higher-level management.

Crisis

An unexpected problem that can lead to disaster if not resolved quickly and appropriately.

Certain environment

A decision environment that offers complete factual information on possible action alternatives and their consequences.

Risk environment

A decision environment that lacks complete information but offers probabilities of the likely outcomes for possible action alternatives.

Uncertain environment

A decision environment that lacks so much information that it is difficult to assign probabilities to the likely outcomes of alternatives.

Classical Model

A decision-making model where a manager acts with rationality in a perfect world with structured problems, complete information, and known alternatives, leading to an optimizing decision.

Optimizing decision

A decision outcome that chooses the absolute best alternative among all possible courses of action.

Behavioural Model

A decision-making model where a manager acts with bounded rationality and cognitive limitations under unstructured problems and incomplete information, leading to a satisficing decision.

Bounded rationality

Managerial decision-making that is constrained by cognitive limitations in an imperfect world.

Satisficing decision

A decision outcome that chooses the first satisfactory alternative encountered.

Lack-of-participation error

A failure in decision implementation resulting from not including key people whose support is needed.

Heuristics

Strategies or simplified rules of thumb used to make decision-making easier.

Availability Bias

A cognitive bias that bases a decision on recent information or events.

Representativeness Bias

A cognitive bias that bases a decision on similarity to other situations.

Anchoring and Adjustment Bias

A cognitive bias that bases a decision on an incremental adjustment from a prior decision point.

Framing Error

An error that occurs from trying to solve a problem in the specific context perceived, whether positive or negative.

Confirmation Error

An error characterized by focusing exclusively on information that confirms a decision that has already been made.

Escalating Commitment

The tendency to continue a course of action even though it is clearly not working.

Creativity

The generation of a novel idea or unique approach that solves a problem or exploits an opportunity.

Big-C creativity

Creativity that occurs when extraordinary things are done by exceptional people.

Little-C creativity

Creativity that occurs when average people come up with unique ways to deal with daily events and situations.

Personal creativity drivers

The individual components—task expertise, task motivation, and creativity skills—that feed into creative outcomes.

Situational creativity drivers

The organizational factors—team creativity skills, management support, and organizational culture—that foster creativity.