Week5-Topic5-Decision Management

Decision Behaviour:

The way the managers make most of their decisions is called decision behaviour. The behaviour can be classified as structured and unstructured. When the rules and the constraints governing the decision is already known it is called structured decision behaviour. Complex situations where the rules governing the situation are complicated is known as unstructured decision behaviour.

Usually a manager will fall into one of the two areas: Analytical Manager and Intuitive Manager.

Analytical manager : They tend to make use of figures, quantitative data

Intuitive manager : They concentrate more looking at the situation as a whole rather than independent parts, qualitative data

Decision model framework shows how a decision moves through 5 different stages.Each stage much be completed first before moving on to the next stage. The 5 stages are Intelligence, Design, Choice, Implement decision and Evaluation of decision.

Systems that support managerial decisions can be categorised into the following types : Management Information System (MIS), Decision Support System (DSS) and Executive Information System (EIS)

Management Information System(MIS) is a system that provides information needed to manage organizations effectively. Management information systems involve three primary resources: technology, information, and people, and the most important resource is people, the information that we get supports the routine decision making in the functional areas.

 

Decision Support System(DSS) is used to model data and make quality decision based on the data, making the right decision is usually based on the quality of the  data and one's ability to analyze the data. Decision Support Systems are usually computer applications with a human component. They can shift through large amounts of data and pick between the many choices and supports the non – routine decision.

Executive Information System(EIS) provide senior managers with systems to analyse compare and highlight trends to help govern strategic direction of a company.

Week4-Topic4-Systems in small businesses

The number of employees and either turnover or balance sheet total are the factors that determine whether the company is an SME or not.

Learnt about Mintzberg's organisational structure and simple structure.

The four basic steps for a small business to systemisation are :
1. Flowchart each process in the business
2. Document how it gets done
3. Measure using key performance indicators
4. Allow the system to change/grow

Key systems for small businesses:
Lead generation - Marketing
Lead conversion - Selling
Client Fulfillment - delivering value

Objectives of systemisation in small business:
Reduces risk by enabling the employees to perform a range of processes by following set procedures
Enables work to be allocated to the lowest possible cost source
Allows measurement and improvement of the business processes
Frees up the owner in procuring new business
Allows the owner to be away from business once processes are set and followed
Paves the way to being the business of value that can be sold
Paves the way for using the more complex information systems that will improve management information allowing greater control on the business

Use of information systems in micro business:
Micro businesses in their first year will make limited use of systems, concentrating on demand creation: Website, Google analytics, Facebook, twitter etc.
They need to manage their finances using softwares like spreadsheet or kashflow(cloud based system)
The Information systems will be implemented out of box with no concern for the associated processes
The owner faces a crisis for being overworked; working in the business rather than working on the business. This leads to a need to implement business processes.

Mature Micro Business:
A mature micro business will have an accounting software that enables them to keep a track of financial performance of the company
With less than 10 employees communication will be easy although managing leads, prospects, sales and customers maybe increasingly complex, so the business should look for a Customer Relationship Management software.
Also, the potential use of ERP system may also occur

When we grow from a Micro business to Small business:
Sharing of information becomes very important
The increasing size of the organization leads to more complex buying decisions
Do we go for a best software or take an integrated software solution from SAP, Microsoft or other vendor
Do we hire consultants or do we look for supplier who will provide end to end service.

 

Week3-Topic3-Snowden's Cynefin framework

Sense Making : Sense Making is what people continuously do to work out what is going on in their situations, where they fit and what the need for action.

Dervin, Weick and Snowden are the three big names associated with different approaches in the study of sense making.

Dervin relates sense making to knowledge management. Also, states knowledge as a verb, it is dynamic, forever changing, which has implications for systems that try to store and transfer knowledge

Weick says sense making has to following characteristics : Grounded in identity construction, Retrospective, Inactive of sensible environments, social, ongoing, focused on and by extracted cues and driven by plausibility rather than accuracy.

Snowden's framework says that sense making can be in any of the five environments. Simple, Complicated, Complex, Chaos and disordered

Simple domain : Simple problems - known solutions. Here the knowledge is readily available and can be applied. Often termed as best practice. Action is : Sense - Categorise - Respond

Complicated domain : Complicated problems - knowable solutions. We will have varied solutions to the problem, we may require training or expert's knowledge to solve the problem. Action is : Sense - Analyse - Respond

Complex domain : Complex problems - unknown solutions. It's an experimental practice, innovation. Knowledge is developing along with the problem. Action is : Probe - Sense - Respond.

Chaos domain : Unknown problems - unknown solutions. Crisis management. Action is : Act-Sense-Respond

Implications of sense-making :
Systems that involve humans are messy, unpredictable in different ways and forever changing, such systems are often complex and self-modifying.

A grounded KMSD methodology : Sense-making, envisioning, designing, exploring and evolving

A simplified KMSD methodology : Sense-making, envisioning, designing and exploring

Wee2-Topic2-Knowledge Management

Definition of Knowledge Management :
A broad range of activities related to ensuring an organisation makes the best use of its information services.

Knowledge can be classified into two categories : Tacit and Explicit
Explicit knowledge is formal and systematic and can be expressed in a specific language and processed and transmitted easily

Tacit knowledge is deeply influenced by ideas, commitment, beliefs, values and emotions. It is highly personal and difficult to formalise and transmit

We learnt about the SECI (Socialization, Externalization, Combination, Internalization) model.

The organization can go into two extremes in their KM practices they are capture and connectivity.
Capture : a) Activities that relate to the codification of knowledge. b) Organizations that invest heavily in creating and distributing explicit knowledge, c) Create information packs, knowledge bases and websites

Connectivity : a) Activities that relate to stimulating connections between people b) Transfer of explicit knowledge c) Sharing knowledge through experience, peer interactions, workshops and communities of practice

Embedding knowledge management into everyday working practices helps move the organisations into a state of continuous learning and innovation
1. Unconscious incompetence
2. Conscious incompetence
3. Conscious competence
4. Unconscious competence