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14 Cards in this Set

  • Front
  • Back
Behavioral (administrative) theory of decision making
A theory of managerial decision making, based on the work of Herbert A. Simon, that describes how managers actually make decisions in business situations.
Bounded rationality
Managers must make decisions as rationally as possible with only limited information available.
Classical theory of decision making
Theory of managerial decision making representing an ideal model of decision making, with maximizing outcomes as a primary goal.
The generation of new ideas.
Critical thinking
An approach to evaluating a claim that requires thorough analysis of assumptions and reasoning followed by evaluation based on the argument rather than on assertions.
Decision making
The process through which a manager identifies and solves problems creatively; a process that involves making appropriate and rational decisions.
The translation of a new idea into a new product, service, production method, or organization
The process of making a decision that is aimed at realizing the best possible outcome on one dimension - seeking the best answer.
Nonprogrammed and programmed decisions
Nonprogrammed decisions are decisions that have no precedents and represent situations that have not been dealt with previously, and if so, only on a limited basis within the organization. Programmed decisions are decisions made routinely on a recurring basis and most often do not require huge expenditures and are less complex in nature.
Selecting the best alternative from a range of options that have been evaluated within the existing time and price constraints.
Problem solving
A process of identifying a problem, exploring solutions, and testing a solution.
Adopting the solution that minimally meets the objectives, often found in the first acceptable option that arises within without extensive study.
Scientific method
The steps of logical thinking, which include identifying and defining the problem; gathering information about the problem; developing alternative solutions; evaluating alternatives; and choosing an alternative.
Vroom model
The most common decision-making tree, which was developed by Vroom and Yetton. The model helps determine the optimal amount of subordinate participation desired in the decision-making process.