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10 Cards in this Set
- Front
- Back
Models of Decision Making
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1. the rational model
2. non-rational models |
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rational model
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proposes that managers use a rational, four-step sequence when making decisions:
1. Identify the problem or opportunity (a problem exists when an actual situation and a desired situation differ; an opportunity represents a situation in which there are possibilities to do things that lead to results that exceed goals and expectations. 2. Generate alternative solutions 3. Evaluate alternatives and select a solution. 4. Implement and Evaluate the Solution Chosen. |
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Benefits of the rational model
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1. the quality of decisions may be enhanced because they follow logic from knowledge and expertise.
2. It makes the reasoning behind a decision transparent and available to scrutiny. 3. If made public, it discourages the decider from acting on suspect considerations |
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optimizing
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involves solving problems by producing the best possible solution.
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Non-rational models of decision Making
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attempt to explain how decisions are actually made:
1. Simon's normative model 2. The garbage can model |
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simon's normative Model
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proposed to describe the process that managers actually use when making decisions which process is guided by bounded rationality and includes satisficing.
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bounded rationality
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the notion that decision makers are "bounded" or restricted by a variety of constraints when making decisions.
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satisficing
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choosing a solution that meets some minimum qualifications, one that is "good enough."
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Most Frequent Causes of poor decision Making
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1. Poorly defined processes and practices
2. Unclear company vision, mission, and goals. 3. Unwillingness of leaders to take responsibility 4. a lack of reliable, timely information |
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the garbage can model
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decisions result from complex interaction between four independent streams of events: problems, solutions, participants, and choice opportunities
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