Chapter # 11 Flashcards
Decision Making
Making choices among alternative courses of action, including inaction
Programmed decisions
Decisions that occur frequently enough that we develop an automated response to them
Decision rule
Automated response to problems that occur routinely
Nonprogrammed Decisions
Unique, nonroutine, and important. These decisions require conscious thinking, information gathering and careful consideration of alternatives.
Strategic decisions
Decisions that are made to set the course of an organization
Tactical decisions
Decisions about how things will get done
Operational decisions
Decisions employees make each day to make the organization function.
Rational Decision-making model
A series of steps that decision makers should consider if their goal is to maximize their outcome and make the best choice
Decision Criteria
A set of parameters against which all of the potential options in decision making will be evaluated
Alternatives
Other possible solutions to a problem in a decision making process
Analysis paralysis
A decision-making process in which more and more time is spent on gathering information and thinking about it but no decisions actually get made
Bounded rationally model
According to this model individuals knowingly limit their operations to a manageable set and choose the first acceptable alternative without conducting an exhaustive search for alternatives
Satisfice
To accept the first alternative that meets minimum criteria
Intuitive decision-making model
Arriving at decisions without conscious reasoning. The model argues that in a given situation, experts making decisions scan the environment for cues to recognize patterns.
Creativity
The generation of new ideas that are original, fluent and felxible
