Chapter 7: Data and Decision-Making

Comprehensive vocabulary flashcards generated from Chapter 7: Data and Decision-Making, covering core definitions, analytical concepts, cognitive styles, decision models, heuristics, and problem-solving strategies.

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.

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.

Management Information Systems

Systems that use technology to collect, organize, and distribute data for use in decision-making.

Intelligence Information

Information gathered from stakeholders and the external environment.

Public Information

Information known to stakeholders and the external environment.

Internal Information

Information flowing upward, downward, and horizontally across an organization.

Data Mining

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

Big Data

Data collected in huge quantities that are difficult to mine without using advanced mathematical and analytical techniques.

Analytics

The systematic gathering, evaluation, and processing of data to make informed decisions.

Volume

The first V of big data, referring to data existing in large, super large quantities.

Variety

The second V of big data, referring to data collected and taken advantage of from many different sources.

Veracity

The third V of big data, referring to how accurate, reliable, and trustworthy data is.

Velocity

The fourth V of big data, referring to data reflecting what is currently happening in the real world, in real time.

Value

The fifth V of big data, meaning data must provide benefits that outweigh its costs and help businesses make better decisions.

Business Intelligence

The process of mining information systems to extract and report data in organized ways that are helpful to decision-makers.

Executive Dashboard

A visual tool that displays important business performance information using charts, graphs, and numbers, often updated in real time.

Problem Solving

The process of identifying a discrepancy between an actual and a desired state of affairs, and then taking corrective action to resolve the problem.

Decision

A choice among alternative possible courses of action.

Performance Threat

A situation in which something is already wrong or has the potential to go wrong.

Performance Opportunity

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

Problem Avoiders

People who ignore information that would otherwise signal the presence of a performance opportunity or threat.

Problem Solvers

People who are willing to make decisions and try to solve problems, but only reactively when forced into it by the situation.

Problem Seekers

People who constantly process information and proactively look for problems to solve, even before they occur.

Systematic Thinking

Approaching problems using a rational, step-by-step, analytical process.

Intuitive Thinking

Approaching problems in a flexible, imaginative, and spontaneous fashion.

Multidimensional Thinking

The ability to view many problems simultaneously, in relationship to one another and across both long and short time horizons.

Strategic Opportunism

The ability to remain focused on long-term objectives while being flexible enough to resolve short-term problems and opportunities in a timely way.

Cognitive Styles

The ways individuals deal with information while making decisions.

Sensation Thinkers

Decision-makers who emphasize the impersonal, prefer hard facts, clear goals, certainty, and high levels of control.

Intuitive Thinkers

Decision-makers comfortable with abstraction and unstructured situations, who are logical and theoretical but tend to avoid details.

Intuitive Feelers

Decision-makers who prefer broad and global issues, value flexibility and human relationships, and are comfortable with intangibles.

Sensation Feelers

Decision-makers who emphasize both analysis and human relations, prefer facts to speculation, and are open communicators sensitive to feelings.

Structured Problems

Problems that are familiar, straightforward, and have clear information needs.

Programmed Decision

A decision that applies a specific solution or decision rule already available from past experience to a routine problem.

Unstructured Problems

New or unusual situations characterized by ambiguities and information deficiencies.

Nonprogrammed Decision

A decision that applies a specific, novel solution crafted to meet the demands of a unique problem.

Crisis Decision

A decision required when an unexpected problem arises that can lead to disaster if not resolved quickly and appropriately.

Certain Environment

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

Risk Environment

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

Uncertain Environment

An environment that lacks so much information that decision-makers are unable to assign probabilities to the likely outcomes of alternatives.

Decision-Making Process

A six-step process that begins with identification of a problem and ends with evaluation of results.

Cost-Benefit Analysis

A comparison of the costs and benefits of each potential course of action.

Classical Decision Model

A model that views decision-making with complete information, leading to an optimizing decision.

Optimizing Decision

A decision that chooses the alternative giving the absolute best solution to a problem.

Behavioural Decision Model

A model that views decision-making with limited information and bounded rationality, leading to a satisficing decision.

Bounded Rationality

Making decisions within the constraints of limited information and alternatives.

Satisficing Decision

The choice of the first satisfactory alternative that comes to one's attention.

Lack-of-Participation Error

Failure to involve in a decision the persons whose support is needed to implement it.

Spotlight Questions

Questions that test the ethics of a decision by exposing it to scrutiny through the eyes of family, community members, and ethical role models.

Heuristics

Simplifying strategies for decision-making.

Framing Error

Evaluating and resolving a problem in the context in which it is perceived, either positively or negatively.

Availability Bias

Decision-making based on information that is readily available from memory.

Representativeness Bias

Basing a decision on similarity to a stereotyped set of occurrences.

Anchoring and Adjustment Bias

Decision-making based on inappropriate deference to a previous value or starting point.

Confirmation Error

What occurs when focusing only on information that confirms or is consistent with a decision already made.

Escalating Commitment

The continuation or increase of effort and resources toward a course of action even though it is not working.

Creativity

The generation of a novel idea or unique approach that solves a problem or crafts 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.

Design Thinking

Thinking that unlocks creativity in decision-making through a process of experiencing, ideation, and prototyping.

Integrative Thinking

A process that seeks to understand the tension between two opposing ideas from which creative solutions can emerge.