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25 Cards in this Set

  • Front
  • Back
Decision making
The process by which managers respond to opportunities and threats by analyzing options and making determinations about specific organizational goals and courses of action.
Programmed decision making
Routine, virtually automatic decision making that follows established rules or guidelines.
Nonprogrammed decision making
Nonroutine decision making that occurs in response to unusual, unpredictable opportunities and threats.
Feelings, beliefs, and hunches that come readily to mind, require little effort and information gathering, and result in on-the-spot decisions.
Reasoned judgment
A decision that takes time and effort to make and results from careful information gathering, generation of alternatives, and evaluation of alternatives.
Classical model
A prescriptive approach to decision making based on the assumption that the decision maker can identify and evaluate all possible alternatives and their consequences and rationally choose the most appropriate course of action.
Optimum decision
The most appropriate decision in light of what managers believe to be the most desirable future consequences for their organization.
Administrative model
An approach to decision making that explains why decision making is inherently uncertain and risky and why managers usually make satisfactory rather than optimum decisions.
Bounded rationality
Cognitive limitations that constrain one's ability to interpret, process, and act on information.
Searching for and choosing an acceptable, or satisfactory, response to problems and opportunities, rather than trying to make the best decision.
Rules of thumb that simplify decision making.
Systematic errors
Errors that people make over and over and that result in poor decision making.
Prior-hypothesis bias
A cognitive bias resulting from the tendency to base decisions on strong prior beliefs even if evidence shows that those beliefs are wrong.
Representativeness bias
A cognitive bias resulting from the tendency to generalize inappropriately from a small sample or from a single vivid event or episode.
Illusion of control
A source of cognitive bias resulting from the tendency to overestimate one's own ability to control activities and events.
Escalating commitment
A source of cognitive bias resulting from the tendency to commit additional resources to a project even if evidence shows that the project is failing
A pattern of faulty and biased decision making that occurs in groups whose members strive for agreement among themselves at the expense of accurately assessing information relevant to a decision.
Devil's advocacy
Critical analysis of a preferred alternative, made in response to challenges raised by a group member who, playing the role of devil's advocate, defends unpopular or opposing alternatives for the sake of argument.
Dialectical inquiry
Critical analysis of two preferred alternatives in order to find an even better alternative for the organization to adopt
Organizational learning
The process through which managers seek to improve employees' desire and ability to understand and manage the organization and its task environment.
Learning organization
An organization in which managers try to maximize the ability of individuals and groups to think and behave creatively and thus maximize the potential for organizational learning to take place.
A decision maker's ability to discover original and novel ideas that lead to feasible alternative courses of action
Production blocking
A loss of productivity in brainstorming sessions due to the unstructured nature of brainstorming.
Nominal group technique
A decision-making technique in which group members write down ideas and solutions, read their suggestions to the whole group, and discuss and then rank the alternatives.
Delphi technique
A decisionmaking technique in which group members do not meet face-to-face but respond in writing to questions posed by the group leader.