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Management by Objectives (MBO) as a concept first appeared in a 1954 book The Practice of Management . The author, Peter Drucker, has since become known as one of the world’s most influential business experts. Management by Objectives is ...
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All non-trivial decisions have multiple objectives, and sometimes sub-objectives. The resulting complexity opens the door to the limitations of effective decision making and the use of counter productive strategies . Structuring objectives into...
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Quantitative data is highly valued. But there are several potential problems using raw quantitative data: It may not represent what you think it does; for example, data about the past does not necessarily reflect what will happen in the future....
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Synthesis involves putting together or combining parts into a whole. Analysis - the separating of any material or abstract entity into its constituent elements - is the opposite of synthesis. 1 Organizations have become quite good at doing analys...
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Humans are unreliable decision makers because our judgments as humans are generally strongly influenced by irrelevant factors. 1 This is the expert opinion of Daniel Kahneman, the Nobel Prize winner in Economic Sciences and a master in understandi...
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Consensus decision-making is a group decision-making process in which group members develop, and agree to support, a decision in the best interest of the whole. Consensus decision-making is a dynamic way of reaching agreement between all members of...
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Most, if not all, decisions are made under uncertain conditions. Sensitivity analysis is a technique used to determine how different values of an independent variable impact a particular dependent variable under a given set of assumptions. It is ...
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When a manager looks at the world through only one mental window, s/he fails to see other views. This may lead to the use of outdated, or even wrong, frames. Frame Blindness is setting out to solve the wrong problem (or failure to adequately sol...
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A Sunk Cost is a cost that is incurred and can not be meaningfully recovered by any practical means. 1 For example, a business may have invested a million dollars in new hardware. This money is now gone and cannot be recovered, so it shouldn’t ...
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Availability Bias is the tendency to let an example that easily comes to mind easily affect decision-making or reasoning. 1 This occurs when we overweight evidence that comes more easily to mind or is more prevalent in our memories. The study o...