Information & Decision making

  1. Intellectual capital
    The collective brain power or shared knowledge of a worforce.
  2. Information systems
    Use IT to collect, organise and distribute data for use in decision making.
  3. Decision support system
    Allows a computer to help organise and analyse data for problem solving.
  4. Expert systems
    Allows computers to mimic the thinking of human experts for applied problem solving.
  5. Programmed decisions
    Apply solutions from past experience to a routine problem.
  6. Non-programmed decisions
    Apply specific solutions crafted for a unique problem.
  7. Certain environment
    Alternative courses of action and thier outcomes are known to the decision maker.
  8. Risk environment
    Decision maker views alternatives and their outcomes in terms of probabilities.
  9. Uncertain environment
    Decision maker doesn't know all alternatives and outcomes.
  10. Systematic thinking
    Approaches problems in a rational and analytical fashion.
  11. Intuitive thinking
    Approaches problems in a flexible and spontaneous fashion.
  12. Steps in the decision making process
    • 1. Identify and define the problem
    • 2. Generate and evaluate possible solutions
    • 3. Choose a preferred solution
    • 4. Implement the solution
    • 5. Evaluate results
  13. Classical decision model
    Decisions make in a certain environment with complete information.
  14. Behavioural decision model
    Decision making in a risk or uncertain environment with limited information.
  15. Optimising decision
    Choosing the best solution possible for a problem.
  16. Satisficing decision
    Choosing the first satisfactory alternative that comes to your attention.
  17. Bounded rationality
    Decisions are only rational within the boundaries defined by our cognitive limitations and the information available.
  18. Heuristics
    Strategies for simplifying decision making.
  19. Escalating commitment
    The continuation of a course of action even though it is not working.
  20. Knowledge management
    The process of using intellectual capital for competitive advantage.
  21. Learning organisation
    An organisation that continuously changes and improves using the lessons of experience.
Card Set
Information & Decision making
115.108 - Chapter 3