ch 7 Flashcards
individual and group decision making
decision
a choice made from among available alternatives
decision making
the process of identifying and choosing alternative courses of action
rational model of decision making
(aka the classical model)
explains how managers should make decisions; predicts managers will make logical decisions that are the optimal means to further the organization’s best interests
diagnosis
identifying and analyzing the underlying causes
3 things to consider when evaluating alternatives…
- is it ethical?
- is it feasible?
- is it ultimately effective?
using big data and artificial intelligence can help facilitate evaluating alternatives
what’s wrong with the rational model
- complete information, no uncertainty
- logical, unemotional analysis
- best decision for the organization
bounded rationality
suggests that decision makers’ ability to be rational is limited by numerous constraints
hubris
an extreme and inflated sense of pride, certainty, and confidence
satisficing model
seeks alternatives until they find one that is satisfactory, not optimal –> first solution that works
“satisfactory is good enough”
holistic hunch
intuition that stems from expertise
automated experience
intuition based on feeling
what is causing the growth in ethical lapses?
- organizational level factors
- group level factors
- individual level factors
^you can respond to these by hiring an ethics officer
decision tree
a graph of decisions and their possible consequences
used to aid in making decisions, especially when there is uncertainty
evidence-based decision making
the process of gathering and analyzing high-quality data to develop and implement a plan of action
big data
an extremely large quantity of data that is too large for a typical computer to handle and requires the use of new technologies and statistical approaches to process it
