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13 Cards in this Set
- Front
- Back
Decision Making
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The process by which managers respond to opportunities and threats by analyzing options and making determinations about specific org goals and courses of action
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Decision Making in response to opportunities
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when managers search for ways to improve org performance to benefit customers, employees, and other stakeholder groups
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Decision making in response to threats
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when events inside or outside the org are adversely affecting the org performance and mgr's are searching for ways to increase performance
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Programmed Decision Making
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routine, follows rules or guidelines for day to day running of an org
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Nonprogrammed Decision Making
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occurs in response to unusual, unpredictable opportunities and threats
Ex: invest in new tech., develop new product, enter new mkt |
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Intuition
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Ability to make sound decisions based on one's past experience and immediate feelings about info at hand
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Judgement
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Ability to develop a sound opinion based on one's evaluation of the importance of info at hand
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Classical Decision Making Model
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Prescriptive, it specifies how decsions should be made
Assumes the decision maker can identify and evaluate all possible alternatives and consequeces and rationally choose |
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Administrative Model
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Explains why decision making is inherently uncertain and risky and why manaters usually make satisfactory rather than optimum decisions
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Bounded Rationality
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cognitive limitations that constrain one's ability to interpret, process, and act on info
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Incomplete Info
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full range of decision making alternatives is unknowable in most situations due to risk, uncertainty, ambiguity, time constraints
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Satisficing
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Searching for and choosing an acceptable or satisfactory response to problems and opportunities, rather than trying to make the best decision
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Six steps in decision making
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1. recognize the need for a decision 2. generate alternatives 3. assess alternatives 4. choose among alternatives 5. implement chosen alt's 6. learn from feedback
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