1 7 Decision Making Flashcards
nonprogrammed decisions
Decisions required for unique and complex management problems
programmed decisions
Situations in which specific procedures have been developed for repetitive and routine problems
decisions
A means to achieve some result or to solve some problems. The outcome of a process that is influenced by many forces
9 steps of the Rational decision making process
- Establish goals and objectives and measure results
- Problem identification & definition
- Establish priorities
- Consideration of causes
- Development of alternative solutions
- Evaluation of alternative solutions
- Solution selection
- Implementation
- Follow up
3 factors that lead to difficulties in identifying the problem
- perceptual problems. negative info may be selectively perceived in such a way as tondistort true meaning or it may be ignored
- Defining problems in term if solutions. Jumping to conclusions
- Identifying symptoms as problems
3 issues to determine problem significance in order to establish priorities?
Urgency. Relates to time
Impact. Related to seriousness of the problem’s effects
Growth tendency. Addresses future considerations
Method for consideration of causes
5 why’s
4 criteria to evaluate pros and cons of alternative solutions
- legality
- ethics
- economic feasibility
- practicality. are capabilities and resources needed available without threatening other projects or operations
The alternative-outcome relationship is based on 4 possible conditioms, what are they?
certainty
uncertainty
risk. decision maker has some probable estimate of the outcome of each alternative
devil’s advocate
An appointed critic of proposed group actions whose intent is to uncover underlying issues with the prevailing direction if the group
solution selection
Optimal solutions often are impossible. decision maker is a satisfier selecting alternative that meets an acceptable (satisfactory) standard
administrative decision making - bounded rationality approach
This approach assumes that decision making is not a perfectly rational process, but rather one that is fraught with constrains and limitations. Though nit optimal, decisions are thought to be satisfactory and acceptable.
satisfying decision
decision that is acceptable and good enough, but if everything where perfect it might not be the perfect solution
When does intuitive decision making takes place?
- high levels of uncertainty about problem, goals, and decision criteria
- there is no history or past experience to draw upon
- time pressures are intense
- excessive # if alternatives difficult to thoroughly analyze
4 behavioral influences on decision making
values
propensity for risk
potential for dissonance
escalation of commitment