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33 Cards in this Set

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  • Back
Anchoring and adjustment bias
The tendency to make decisions based on an initial figure.
Availability bias
Managers use information readily available from memory to make judgments.
Bounded rationality
This is the concept that suggests that the ability of decision makers to be rational is limited by numerous constraints.
Coalitional model
In this model of decision making, managers band together in groups favoring different alternatives, and the groups bargain, negotiate, and compromise on a particular problem.
Consensus
This occurs when members are able to express their opinions and reach agreement to support the final decision.
Deciding to decide
In doing this a manager agrees that he or she must decide what to do about a problem or opportunity and take effective decision-making steps.
Decision
This is a choice made from among available alternatives.
Decision making
This is the process of identifying and choosing alternative courses of action.
Decision-making style
This reflects the combination of how an individual perceives and responds to information.
Defensive avoidance
This is when a manager can’t find a good solution and follows by (a) procrastinating, (b) passing the buck, or (c) denying the risk of any negative consequences.
Delphi group
This method of decision making uses physically dispersed experts who fill out questionnaires to anonymously generate ideas
Diagnosis
This refers to analyzing the underlying cause of a situation.
Escalation of commitment bias
In this bias decision makers increase their commitment to a project despite negative information about it.
Garbage-can model
This model of decision making is one in which managers make virtually random decisions.
Goal displacement
This occurs when the primary goal is subsumed to a secondary goal.
Groupthink
This occurs when group members strive for agreement among themselves for the sake of unanimity and avoid accurately assessing the decision situation.
Heuristics
These are strategies that simplify the process of making decisions.
Incremental model
This model of decision making is one in which managers take small, short-term steps to alleviate a problem.
Interacting group
This is a group in which members interact and deliberate with each other to reach a consensus.
Intuitive model
This model of decision making consists of a manager’s quickly sizing up a situation and making a decision based on his or her experience or practice.
Nominal group
The purpose of this is to generate ideas and evaluate solutions, which members do so by writing down as many ideas as possible. The ideas are then listed on a blackboard, then discussed, then voted upon.
Non-programmed decision
Types of decisions that occur under non-routine, unfamiliar circumstances.
Non-rational models of decision-making
These explain how managers do make decisions
Opportunities
These are situations that present possibilities for exceeding existing goals.
Panic
This is when a manager is so frantic to get rid of the problem that he or she can’t deal with the situation realistically.
Participative management (PM)
This is the process of involving employees in (a) setting goals, (b) making decisions, (c) solving problems, and (d) making changes in the organization.
Problems
These are difficulties that inhibit the achievement of goals.
Programmed decisions
These are decisions that are repetitive and routine.
Rational model of decision making, also called the classical model
This model explains how managers should make decisions
Relaxed avoidance
This is when a manager decides to take no action in the belief that there will be no great negative consequence.
Relaxed change
This is when a manager realizes that complete inaction will have negative consequences but opts for the first available alternative that involves low risk.
Representative bias
This refers to the tendency to generalize from a small sample or a single event.
Satisficing model
In this model managers seek alternatives until they find one that is satisfactory, not optimal.