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13 Cards in this Set

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