Page 122 - Fundamentals of Management Myths Debunked (2017)_Flat

Exhibit 4–7 What Is Intuition?
Managers make
decisions based on
their past experiences
Managers make Managers make
decisions based on decisions based on
ethical values or culture feelings or emotions
Experience-Based
Decisions
Values or Ethics- Affect-Initiated
Based Decisions Decisions

Intuition
Subconscious Cognitive-Based
Mental Processing Decisions

Managers use data from Managers make
subconscious mind to decisions based on skills,
help them make decisions knowledge, and training
sources: Based on J. Evans, “Intuition and Reasoning: A Dual-Process Perspective,” Psychological Inquiry, October–December 2010, pp. 313–326; T. Betsch and A.
Blockner, “Intuition in Judgment and Decision Making: Extensive Thinking Without Effort,” Psychological Inquiry, October–December 2010, pp. 279–294; R. Lange and
J. Houran, “A Transliminal View of Intuitions in the Workplace,” North American Journal of Psychology, 12, no. 3 (2010), pp. 501–516; E. Dane and M. G. Pratt,
“Exploring Intuition and Its Role in Managerial Decision Making,” Academy of Management Review, January 2007, pp. 33–54; M. H. Bazerman and D. Chugh,
“Decisions Without Blinders,” Harvard Business Review, January 2006, pp. 88–97; C. C. Miller and R. D. Ireland, “Intuition in Strategic Decision Making: Friend or Foe
in the Fast-Paced 21st Century,” Academy of Management Executive, February 2005, pp. 19–30; E. Sadler-Smith and E. Shefy, “The Intuitive Executive: Understanding
and Applying ‘Gut Feel’ in Decision-Making,” Academy of Management Executive, November 2004, pp. 76–91; and L. A. Burke and M. K. Miller, “Taking the Mystery
Out of Intuitive Decision Making,” Academy of Management Executive, October 1999, pp. 91–99.
• Suggestions for using intuitive decision making:

— Use it to complement, not replace, other decision-making approaches. 20
— Look to act quickly with limited information because of past experience with a similar problem.

— Pay attention to the intense feelings and emotions experienced when making decisions.
The payoff? Better decisions! 21

::::::: Technology and the Manager’s Job :::::::
MAkIng BETTER DECISIonS WITH TECHnoLogy

Information technology is providing managers with a wealth of • Can distinguish patterns and trends too subtle or complex for
22
decision-making support. Two decision-making tools include: human beings.
Expert systems and Neural networks. • Can perceive correlations among hundreds of variables, unlike
our limited human brain capacity, which can only easily assimi-
exPert systeMs: late no more than two or three variables at once.
• Encode relevant expert experience using software programs. • Can perform many operations simultaneously, recognizing
• Act as that expert in analyzing and solving unstructured patterns, making associations, generalizing about problems not
problems. exposed to before, and learning through experience.
• Guide users through problems by asking sequential questions about • Example: banks using neural network systems to catch fraudu-
the situation and drawing conclusions based on answers given. lent credit card activities in a matter of hours, not days.
• Make decisions easier for users through programmed rules If your professor has assigned this, go to the Assignments section of
modeled on actual reasoning processes of experts.
• Allow employees and lower-level managers to make high- mymanagementlab.com to complete these discussion questions.
quality decisions normally made only by upper-level managers. talk about it 3: Can a manager ever have too much data
when making decisions? Explain.
neural netWorks:
• Use computer software to imitate the structure of brain cells talk about it 4: How can technology help managers make
and connections among them. better decisions?

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