ch.11 decision making

Question 1

decision making def

Answer 1

the process of developing a commitment to some course of action

Question 2

decision making involves

Answer 2

• choice among several action
• process that involves more than simply the final choice
• ressources: comitment of it

Question 3

problem def

Answer 3

when a gap is perceived between some existing state + some desired state

Question 4

well -structured pbl

Answer 4

the existing state is clear, the desired state is clear and how to get from one state to the other is fairly obvious

• easy to program

Question 5

ill-structured pbl

Answer 5

a pbl for which the existing and desired state are unclear and the method to get to the desired state is unknown.

Question 6

identifying the need for a decision

Answer 6

• underlying issues
• stakeholder analysis
• complicating factors

Question 7

basic alternative responses

Answer 7

choices when making a decision

Question 8

escalation of commitment

Answer 8

the tendency to invest additional ressources in an apparently dailing course of action
=> why ? dissonance reduction , social norms that favours consistent behaviour

Question 9

problem identification and framing

Answer 9

• the perfect rational decision maker should be great problem identifier
• bounded rationality, however can lead to difficulty in pbl identification :
• perceptual defense
• pbl defined in term of functional specialty
• pbl defined in terms of solution
• pbl diagnosed in terms of symptoms

Question 10

perfect rationality def

Answer 10

completely informed, perfectly logical, and oriented toward economic gain

Question 11

bounded rationality

Answer 11

relies on limited info and that reflects time constraint and political consideration that acts as a bound to rationality

Question 12

framing

Answer 12

refers to the aspects of the presentation of info about a pbl that are assumed by decision makers

Question 13

cognitive bias

Answer 13

tendencies to acquire + process info in a particular way that is prone to error

Question 14

decision makers can have either….

Answer 14

• too little information : confirmation bias
• too much info: damage the quality of the decision, info overload, leads to errors, omissions, delays

Question 15

when evaluating alternatives need to consider

Answer 15

• the political acceptability of the solution
• the search for alternatives is often very limited
• firms invest very little money in exploring alternatives

Question 16

solution implementation

Answer 16

decision makers are often dependant on others to implement their decisions and it ight be difficult to anticipate their ability/motivation to do so

• overcoming resistance

Question 17

rational decision making process

Answer 17

identify pbl => search relevant info => develop alternative solution to pbl => evaluate alternative solution => choose best solution => implement solution => mointor + evaluate solution => RECYCLE