Homework Help is Here – Start Your Trial Now!
Business
Management
As you saw in the opening vignete, computerized decision making has really taken ofT in recent years. Some have Mamed the financial crisis that began in 2007-2008 on ex- cessive reliance on these computerized decision-making modeh. Lending offices who used to make individualized decisions about credit worthiness through personal judg- CASE INCIDENT I Computerized Decision Making However, computer tain faults that might se Although computers ca they are not capable of scholar Amar Bhidé n ply rely on historical p opportunities." People portunities that lie just ment were replaced by computerized and statistical mod- ch shich rruulted in mechanistic decision making. As a els

As you saw in the opening vignete, computerized decision making has really taken ofT in recent years. Some have Mamed the financial crisis that began in 2007-2008 on ex- cessive reliance on these computerized decision-making modeh. Lending offices who used to make individualized decisions about credit worthiness through personal judg- CASE INCIDENT I Computerized Decision Making However, computer tain faults that might se Although computers ca they are not capable of scholar Amar Bhidé n ply rely on historical p opportunities." People portunities that lie just ment were replaced by computerized and statistical mod- ch shich rruulted in mechanistic decision making. As a els

Understanding Business
Understanding Business
12th Edition
ISBN:9781259929434
Author:William Nickels
Publisher:William Nickels
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
See similar textbooks
icon
Related questions
Question
However, computer decision-making systems have cer- tain faults that might severely constrain their usefulnew. Although computers can grind through masses of data, they are not capable of intuition or creative thought. As scholar Amar Bhidé notes, "An innovator cannot sim- ply rely on historical patterns in placing bets on future opportunities." People are much more likely to spot op portunities that lie just beyond what the data can tell us CASE INCIDENT I Computerized Decision Making As you saw in the opening vignette, computerized decision making has really taken ofT in recent years. Some have blamed the financial crisis that began in 2007-2008 on ex- cessive reliance on these computerized decision-making model. Lending officers who used to make individualized decisions about credit worthiness through personal judg- ment were replaced by computerized and statistical mod- els, which resulted in mechanistic decision making. As a result, large numbers of decisions were tied to a common set of assumptions, and when those assumptions proved to be wrong, the entire credit system fell apart and the economy faltered. Besides the use of computerized decision models, the use of computerized systems like Twitter for in- formation sharing and the burgeoning number of computer "apps" may be leading to information over- load, so facts and figures replace analysis and thought in making human decisions. Eric Kessler from Pace University's Lubin School of Business notes, "What starts driving decisions is the urgent rather than the im- portant." Researchers have begun to find that people using too much information actually make worse deci- sions than people with less information, or they get so swamped in information that they are unable to reach a decision at all. directly. Also, groups of people working in collaben tion can discuss and question assumptions and concls sions. Computers cannot actively consider whether theie programming makes sense or adapt automatically when values change. Questions 1. What are the specific advantages of using computes ized decision making? How can computers be better decision makers than humans? 2. What are the weaknesses of using computes as decision tools? Are computers likely to have specific problems in making decisions that people wouldn't have? any 3. Do you think computer decision making systems can effectively take ethical issues into account? What is the role of human decision makers in creating ethical choices? Computer decision models do present certain advan- tages. Computers are capable of amassing and compiling cnormous amounts of data and using them to spot trends and patterns a human observer would simply never sce. Computers also are not prone to emotional decision mak- ing or falling into the heuristics and biases we discussed in this chapter. Finally, computerized decision making sys- tems are generally faster than human beings. 4. Are there advantages to conmpletely disconnecting from the wired world when possible? What can you do to try to retain your ability to focus and proces information deeply?
Transcribed Image Text:However, computer decision-making systems have cer- tain faults that might severely constrain their usefulnew. Although computers can grind through masses of data, they are not capable of intuition or creative thought. As scholar Amar Bhidé notes, "An innovator cannot sim- ply rely on historical patterns in placing bets on future opportunities." People are much more likely to spot op portunities that lie just beyond what the data can tell us CASE INCIDENT I Computerized Decision Making As you saw in the opening vignette, computerized decision making has really taken ofT in recent years. Some have blamed the financial crisis that began in 2007-2008 on ex- cessive reliance on these computerized decision-making model. Lending officers who used to make individualized decisions about credit worthiness through personal judg- ment were replaced by computerized and statistical mod- els, which resulted in mechanistic decision making. As a result, large numbers of decisions were tied to a common set of assumptions, and when those assumptions proved to be wrong, the entire credit system fell apart and the economy faltered. Besides the use of computerized decision models, the use of computerized systems like Twitter for in- formation sharing and the burgeoning number of computer "apps" may be leading to information over- load, so facts and figures replace analysis and thought in making human decisions. Eric Kessler from Pace University's Lubin School of Business notes, "What starts driving decisions is the urgent rather than the im- portant." Researchers have begun to find that people using too much information actually make worse deci- sions than people with less information, or they get so swamped in information that they are unable to reach a decision at all. directly. Also, groups of people working in collaben tion can discuss and question assumptions and concls sions. Computers cannot actively consider whether theie programming makes sense or adapt automatically when values change. Questions 1. What are the specific advantages of using computes ized decision making? How can computers be better decision makers than humans? 2. What are the weaknesses of using computes as decision tools? Are computers likely to have specific problems in making decisions that people wouldn't have? any 3. Do you think computer decision making systems can effectively take ethical issues into account? What is the role of human decision makers in creating ethical choices? Computer decision models do present certain advan- tages. Computers are capable of amassing and compiling cnormous amounts of data and using them to spot trends and patterns a human observer would simply never sce. Computers also are not prone to emotional decision mak- ing or falling into the heuristics and biases we discussed in this chapter. Finally, computerized decision making sys- tems are generally faster than human beings. 4. Are there advantages to conmpletely disconnecting from the wired world when possible? What can you do to try to retain your ability to focus and proces information deeply?
Expert Solution
steps

Step by step

Solved in 5 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Understanding Business
Understanding Business
Management
ISBN:
9781259929434
Author:
William Nickels
Publisher:
McGraw-Hill Education
Management (14th Edition)
Management (14th Edition)
Management
ISBN:
9780134527604
Author:
Stephen P. Robbins, Mary A. Coulter
Publisher:
PEARSON
Spreadsheet Modeling & Decision Analysis: A Pract…
Spreadsheet Modeling & Decision Analysis: A Pract…
Management
ISBN:
9781305947412
Author:
Cliff Ragsdale
Publisher:
Cengage Learning
Management Information Systems: Managing The Digi…
Management Information Systems: Managing The Digi…
Management
ISBN:
9780135191798
Author:
Kenneth C. Laudon, Jane P. Laudon
Publisher:
PEARSON
Business Essentials (12th Edition) (What's New in…
Business Essentials (12th Edition) (What's New in…
Management
ISBN:
9780134728391
Author:
Ronald J. Ebert, Ricky W. Griffin
Publisher:
PEARSON
Fundamentals of Management (10th Edition)
Fundamentals of Management (10th Edition)
Management
ISBN:
9780134237473
Author:
Stephen P. Robbins, Mary A. Coulter, David A. De Cenzo
Publisher:
PEARSON
SEE MORE TEXTBOOKS