Business Management Chapter 4

Front 1

________: Processes that involves three stages:intelligence, design, and choice

Back 1

Decision Process

Front 2

_______: in its narrowest sense, the process of choosing from among various alternatives

Back 2

decision making

Front 3

____:process of determining the appropriate responses or actions necessary to alleviate a problem

Back 3

Problem Solving

Front 4

________:: Approach used when managers make decisions based largely on hunches or intuition

Back 4

intuitive approach

Front 5

________: Managers have this. doesn't matter, we'll make it work. overcompetance

Back 5

Hubris

Front 6

______ emotional attachments lead to _________

Back 6

George Odiorne, poor decisions

Front 7

Two Suggestions of decreasing emotional attachments

Back 7

1. Become aware of biases (past decisions)
2. Seek independent opinions

Front 8

_____: a rational or scientific appraoch. Includes the following steps.
1. recognize the need for a decision
2.establish,rank, and weigh the decision criteria
3.gather available information and data
4. identify possible alternatives
5. evaluate each alternative with respect to all criteria
6. Select the best alternative

Back 8

Optimizing Approach

Front 9

________: Assumes people have the time and cognitive ability to process only a limited amount of information on which to base decisions

Back 9

principle of bounded rationality

Front 10

Optimizing Approach is based on 4 assumptions

Back 10

1. People have clearly defined criteria
2. People have complete knowledge
3. People have the ability
4. People have self-disciple (no manipulation)

Front 11

_______: selecting the best possible alternative

Back 11

Optimizing

Front 12

______:selecting the first alternative that meets the decision maker's minimum standard of satisfaction

Back 12

Satisficing

Front 13

_____________:principle have a bound rationality
-suggest humans have definite limits

Back 13

Satisficing Approach
-Herbert Simon

Front 14

Simon's 4 assumptions

Back 14

1. A person's knowledge of alternatives and criteria is limited
2. People act on a basis of simplified, ill-structured, mental concept of the real world; this concept is influenced by personal perceptions, biases, and so forth.
3.People do not attempt to optimize but will take the first alternative that satisfies the current level of aspiration.
4. An individuals level of aspiration concerning a decision fluctuating upward or downward, depending on the values of the most recently identified alternatives

Front 15

_______: Situation that occus when a decision maker knows exactly what will happen and can often calculate the precise outcome for each alternative

Back 15

Situation of Certainty

Front 16

________: Situation that occurs when a decision make is aware of the relative probabilities of occurrence associated with each alternative

Back 16

Situation of Risk

Front 17

___________:Situation that occurs when a decision maker has very little or no reliable information on which to evaluate the different possible outcomes

Back 17

Situation of Uncertainty

Front 18

_______:Selecting the alternative whose best possible outcome is the best of all possible outcomes for all alternatives

sometimes call the optimistic or gambling approach to decision making

example: Umbrella

Back 18

Maximax approach

Umbrella- Would not take the umbrella because the best possible outcomes would be being dry without being inconvienced

Front 19

______: Comparing the worst possible outcomes for each alternative and selecting the one that is least desirable; s

-sometimes called the pessimistic approach to decision making

example:Umbrella

Back 19

Maximin Approach


Umbrella- Will decide to take Umbrella because it is better to be dry than wet

Front 20

______:Choosing the alternative with the least variation among its possible outcomes

example: Umbrella

Back 20

Risk-averting approach

Umbrella- will take an umbrella to stay dry

Front 21

4 Basic barriers to effective decision making

Back 21

1. Complacency
2. Defensive Avoidance
3.Panic
4. Deciding to Decide

Front 22

_______: does not see danger signs or opportunity and ignores data

Back 22

Complacency

Front 23

_____;denies importance of danger, the opportunity or the responsiblity for taking action

Back 23

Defensive Avoidance

Front 24

______:Frantic attempts to solve a problem rarely produces the best results

Back 24

Panic

Front 25

_______;Accepting the responsibility and challenge of decision making

Back 25

Deciding to Decide

Front 26

____:Coming up with an idea that is new, original, useful, or satisfying to its creator or to someone else

Back 26

Creativity

Front 27

________: Process of applying a new and creative idea to a product, service, or method of operation

Back 27

Innovation

Front 28

The Creative Process is a 5 Step Process

Back 28

1. Preparation
2. Concentration
3.Incubation
4.Illumination
5.Verification

Front 29

_____: presenting a problem to a group and allowing group members to product a large quantity of ideas for its solution. no criticism is allowed

Back 29

Brainstorming

Front 30

_______; Differs from brainstorming in that no one but the group leader knows the exact nature of the problem under consideration. A key word is used to describe a problem area

Back 30

Gorden Technique

Front 31

__________; Technique in which a group is presented with a problem situation and members anonymously write down ideas, then exchange papers with others, who build on ideas and pass them on until all members have participated

Back 31

Brainwriting

Front 32

_____: groups that make decision about managing and carrying out major production activities

Back 32

Semiautonomous Work Groups

Front 33

______: working less hard in a group and being less productive

Back 33

Social Loafing

Front 34

_____: working harder when in a group than working alone

Back 34

Social facilitation effect