Ch4-Managers As Decision Makers Flashcards
Performance opportunity
A situation that offers the possibility of a better future
Performance threat
A situation where something is wrong or likely to be wrong
Problem seekers
Proactive in anticipating threats and opportunities
Programmed decisions
Applies a solution from past experience to a routine problem
Non-programmed decisions
Applies a specific solution crafted for a unique problem
Systematic decision
Approaches problems in a rational and analytical fashion
Intuitive thinking
Approaches problems in a flexible and spontaneous thinking
Order of solving environments from
Low risk of failure to high risk
Programmed to no programmed decision
Certain environment
Risk environment
Uncertain environment
What are the 5 steps in the decision making process?
1-identify and define the problem 2-generate and evaluate alternative solutions 3-decide on preferred course of action 4-implement the decision 5-evaluate results
Criteria for evaluating alternatives, 2nd step of the decision making process
- cost benefit analysis
- timeliness
- acceptability
- ethical soundness
Lack of participation error
Failure to include the right people in the decision-making process
How are ethics of a decision checked?
Criteria of utility, rights, justice and caring
Factors that drive creativity
Task expertise
Task motivation
Creative skills
Availability heuristic- decision making error
When people use information readily available as a basis for assessing a current event or situation
Representative heuristic- decision making error
Occurs when people assess the likelihood of something occurring based on its similarity to a stereotyped set of occurrences
Anchoring and adjustment heuristic- decision making error
making decisions based on adjustments to a previous value or starting point
Framing error
Solving the problem in the context perceived, positive or negative
Confirmation error
Only pay attention to information that confirms the decision that has been made
Escalating commitment
Adding resources to a course of action even if it’s not working
How to avoid the escalating trap?
Set advanced limits and don’t follow the lead of others.
Crisis management programs
Train managers in decision making and establish plans to handle emergencies
