Chapter 11 Flashcards
what are the linking processes?
decision making, communication, balance
three primary stages of decision making
1) define the problem 2) identify and analyse potential courses of action 3) selection of particular course of action
how are managerial and non-managerial decisions diff?
managerial all 3 stages, non-managerial only the choice stage
which takes more judgement: programmed or nonprogrammed decisions?
nonprogrammed
programmed decisions also called:
routine/repetitive decisions
two types of nonprogrammed decisions?
organizational and personal
what are steps of good decision making?
recognize and define prob, identify alternatives, evaluate alternatives, select best alternative, implement alternative, evaluate outcome
“satisficing” decision coined by:
Simon and March
conditions under which decisions are made
certainty, risk, uncertainty
what to do when little to no knowledge about occurrence of various states of nature in decision;
optimistic/maximum approach (biggest potential), pessimistic/maximin approach (least negative worst outcome), risk-averting approach (least variation among possible outcomes)
what are some decision making techniques?
decision trees, cost-benefit, cost-effectiveness, networks, linear programming, game theory, queuing theory, simulation, AI, expert systems
what are two widely used networks?
Program Evaluation and Review Technique (PERT) and Critical Path Method (CPM)
what is a network?
graphic representation of flow and sequence of events and activities
activity vs. event?
define work to be performed vs. beginning/end of activity
PERT is used when time when activities finish is ___, so need these three time estimates:
uncertain; optimistic time, likely time, pessimistic time
what is critical path?
path with longest duration
linear program invented by ___ and focuses on an optimal combo of ____ to obtain desired objective
Loomba; resources
a pioneer in computer menu planning based on linear programming
Balintfy
advantages of using computer simulation?
changes in procedure can be examined without disrupting ops, time to complete tasks can be modified and effect on op explored, bottlenecks in flow of ops can be identified
Burack and Mathys describe three possibilities for managerial decision making:
1) individual 2) combination 3) group
methods of group decision making:
interacting (freely discuss), delphi (expert), nominal (take turns presenting), focus (customer feedback)
two potentially negative group phenomena:
groupthink, risky shift
communication in orgs viewed from these two perspectives:
interpersonal, organizational
What are channels in an organization?
face to face, memos, letters, emails, reports, phone