Ch 5 Flashcards
Intuition
feelings, beliefs, and hunches that come readily to mind, require little effort and information gathering and result in on-the-spot decisions
Reasoned Judgement
decisions that take time and effort to make and result from careful information gathering, generation of alternatives, and evaluation of alternatives
Classical Model of Decision Making
A prescriptive model of decision making that assumes the decision maker can identify and evaluate all possible alternatives and their consequences and rationally choose the most appropriate course of action
Administrative Model of Decision Making
An approach to decision making that explains why decision making is inherently uncertain and risky and why managers usually make satisfactory rather than optimum decisions
Bounded Rationality
Cognitive limitations that constrain one’s ability to interpret, process, and act on vast amount of information.
Risk
The degree of probability that the possible outcomes of a particular course of action will occur
Uncertainty
the probabilities of alternative outcomes cannot be determined and future outcomes are unknown
Ambiguous Information
Information that can be interpreted in multiple and often conflicting ways.
Time constraints and information costs
managers have neither the time nor money to search for all possible alternatives and evaluate potential consequences
Satisficing
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
- recognize the need of for a decision
- generate alternatives
- assess alternatives
- choose among alternatives
- implement the chosen alternative
- learn from feedback
Groupthink
A pattern of faulty and biased decision making that occurs in groups whose members strive for agreement among themselves at the expense of accurately assessing information relevant to a decision
Organizational Learning
The process through which managers seek to improve employees’ desire and ability to understand and manage the organization and its task environment.
Creativity
A decision maker’s ability to discover original and novel ideas that lead to feasible alternative courses of action
Production blocking
Loss of productivity in brainstorming sessions due to the unstructured nature of brainstorming
