Chaper 6: Managerial Decision Making Flashcards
Decision
A choice made from available alternatives
Decision making
The process of identifying opportunities
Programmed decisions
Recurring problems
Apply rule
Nonprogrammed decisions
Unique situations
Poorly defined
Unstructured
Important consequences
Certainty
Situating in which all available information is available
Risk
Future outcomes associated with an alternative are subject to chance
Uncertainty
Depends on the amount and value of information available
Ambiguity
Making decisions in difficult situations. Goals and the problem are unclear
Wicked decisions
Involve conflict over goals and have changing circumstances, fuzzy information, and unclear links. There is often no right answer
Bounded rationality
People have limits or boundaries on how rational they can be
Satisficing
Decision makers choose the first solution that satisfies the minimal decision criteria
Intuition
Quick apprehension of situation based on practice and experience
Coalition building
Informal alliance to support specific goal. Without a coalition, powerful groups can derail the decision-making process.
Recognition of decision requirement
Step 1 in decision making is to identify the problem or opportunity
Diagnosis and analysis
Step 2 is to analyze underlying causal factors
Develop alternatives
Step 3 is to define feasible alternatives
Selection of desired alternative
Step 4 is to select the alternative with most desirable outcome
Implementation of chosen alternative
Step 5 is the use of managerial, administrative, and persuasive abilities to execute chosen alternatives
Evaluation and feedback
Step 6 is to gather information about the effectiveness
Directive style
People who prefer simple, clear-cut solutions to problems
Analytical style
Managers prefer complex solutions based on a lot of data
Conceptual style
Managers like a broad amount of information
Behavioral style
Managers with a deep concern for others
