Mgt 3310 Chapter 7 Decision Making And Theory

Front 1

Anchoring and adjustment bias

Back 1

The tendency to make decisions based on an initial figure.

Front 2

Availability bias

Back 2

Managers use information readily available from memory to make judgments.

Front 3

Bounded rationality

Back 3

This is the concept that suggests that the ability of decision makers to be rational is limited by numerous constraints.

Front 4

Coalitional model

Back 4

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.

Front 5

Consensus

Back 5

This occurs when members are able to express their opinions and reach agreement to support the final decision.

Front 6

Deciding to decide

Back 6

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.

Front 7

Decision

Back 7

This is a choice made from among available alternatives.

Front 8

Decision making

Back 8

This is the process of identifying and choosing alternative courses of action.

Front 9

Decision-making style

Back 9

This reflects the combination of how an individual perceives and responds to information.

Front 10

Defensive avoidance

Back 10

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.

Front 11

Delphi group

Back 11

This method of decision making uses physically dispersed experts who fill out questionnaires to anonymously generate ideas

Front 12

Diagnosis

Back 12

This refers to analyzing the underlying cause of a situation.

Front 13

Escalation of commitment bias

Back 13

In this bias decision makers increase their commitment to a project despite negative information about it.

Front 14

Garbage-can model

Back 14

This model of decision making is one in which managers make virtually random decisions.

Front 15

Goal displacement

Back 15

This occurs when the primary goal is subsumed to a secondary goal.

Front 16

Groupthink

Back 16

This occurs when group members strive for agreement among themselves for the sake of unanimity and avoid accurately assessing the decision situation.

Front 17

Heuristics

Back 17

These are strategies that simplify the process of making decisions.

Front 18

Incremental model

Back 18

This model of decision making is one in which managers take small, short-term steps to alleviate a problem.

Front 19

Interacting group

Back 19

This is a group in which members interact and deliberate with each other to reach a consensus.

Front 20

Intuitive model

Back 20

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.

Front 21

Nominal group

Back 21

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.

Front 22

Non-programmed decision

Back 22

Types of decisions that occur under non-routine, unfamiliar circumstances.

Front 23

Non-rational models of decision-making

Back 23

These explain how managers do make decisions

Front 24

Opportunities

Back 24

These are situations that present possibilities for exceeding existing goals.

Front 25

Panic

Back 25

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.

Front 26

Participative management (PM)

Back 26

This is the process of involving employees in (a) setting goals, (b) making decisions, (c) solving problems, and (d) making changes in the organization.

Front 27

Problems

Back 27

These are difficulties that inhibit the achievement of goals.

Front 28

Programmed decisions

Back 28

These are decisions that are repetitive and routine.

Front 29

Rational model of decision making, also called the classical model

Back 29

This model explains how managers should make decisions

Front 30

Relaxed avoidance

Back 30

This is when a manager decides to take no action in the belief that there will be no great negative consequence.

Front 31

Relaxed change

Back 31

This is when a manager realizes that complete inaction will have negative consequences but opts for the first available alternative that involves low risk.

Front 32

Representative bias

Back 32

This refers to the tendency to generalize from a small sample or a single event.

Front 33

Satisficing model

Back 33

In this model managers seek alternatives until they find one that is satisfactory, not optimal.