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28 Cards in this Set
- Front
- Back
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Managers of highly reliable organizations (HROS)
Get |
the input of frontline supervisors
And let them make decisions |
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A characteristic that the experts say
An effective decision-making process requires |
only as much
Information and analysis as is necessary |
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To make effective decisions
In todays fast moving world |
Mangers need to know
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When decision makers assess the likelihood
Of an event based on How closely it resembles other events They are using |
representation bias
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When decision makers seek out information
Discount information that contradicts past judgements, They are exhibiting |
confirmation bias
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When decision makers tend to think
They know more than they do Or hold unrealistically positive views of hemselves and their performance, They are exhibiting |
overconfidence bias
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Many managers use
Rules of thumb To |
simplify their decision making
Called heuristics |
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A manager
Who desires to minimize His maximum regret will Op for a |
minimax choice
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A pessimist manger
Will follow maximizing the The minimum possible payroll Called a |
maximin choice
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An optimistic manager Will follow maximizing the
The maximum possible payoff Called a |
maximax choice
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Nonprogrammed decisions are
Typically made under a Condition of |
uncertainty
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The retail clothing store manager who estimates how much to order
For the current spring season Based on last springs outcomes is operating under |
Risk
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If an individual knows the price of three similar cars
At different dealerships, He is operating under |
Certainty
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A certainty is
A situation in which a manger Can make accurate decisions Because |
the outcome of every alternative
Is known |
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The difference between a policy and a rule is
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a policy is very broad and
Establishes parameters |
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A policy
In the majority of cases Contains an |
ambiguous term
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A rule is
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An explicit statement that tells a manger What he or she can or cannot do
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Programmed decision making is
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Relatively simple and
Tends to rely heavily on previous solutions |
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When a decision maker chooses an alternative Under perfect rationality She
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maximizes her decision
Whereas under the bounded rationality She chooses a satisfiable decision |
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The type of decision making
In which the solution is considered “Good enough” is know as |
Satisficing
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Rational Decision Making is
a type of decision-making In which |
choices are logical and
Consistent and maximize value |
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Managers can make
Rational decisions if |
The alternatives are limited
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Managers that are assumed to be rational make
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consistent
Value maximizing choices |
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Allowing those impacted by the outcomeTo participate in the process is
Important in |
effectively implementing
The chosen alternative |
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In allocating weights to the decision criteria
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Assign the most important criterion A score, and then assign weights Against the standard
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The problem must be
Such that it exerts Some type of |
pressure
On the manager to act |
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A problem is
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The existence of a discrepancy between An existing and a desired state of affairs
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Decision-making Process
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1. Identification of a problem- agree in writing
2. Identification of decision criteria 3. Allocation of weights to criteria 4. Development of alternatives 5. Analysis of alternatives 6. Selection of an alternative 7. Implementation of the alternative 8. Evaluation of decision effectiveness |
