Chapter 12

Question 1

Decision making

Answer 1

• identifying and choosing solutions that lead to a desired end result- a commitment of resources
• Models of decision making:

1. rational model- optimizing
2. Simon’s normative model- bounded rationality

Question 2

Optimizing

Answer 2

maximize, best outcome for any given event, vitually impossible

Question 3

Bounded Rationality

Answer 3

• Premise that decision making is not rational
• Decision makers are guided by bounded rationality, constraints on decision making
• Decision making characterized by:

1. limited information processing
2. use of judgmental heuristic
3. satisficing= tendency to pick the first acceptable solution

Question 4

Satisficing

Answer 4

tendency to pick the first acceptable solution

Question 5

Knowledge management

Answer 5

sharing knowledge for decision making

• implementing systems and prcatices that encrease the sharing of knowledge and information throughout the organization
• Tacit information- gained through experience that is difficult to express and formalize
• Explicit knowledge= information that can be easily put into words and shared by others

Question 6

Escalation of commitment

Answer 6

sticking to a bad course of action

• bias facts so they support previous decisions
• take more risks when a decision is stated in negative terms
• Get too ego involved

Question 7

Brainstorming

Answer 7

A group decision making technique:

Dr. Osborn’s 4 rules:

1. No judicial thinking- no criticism
2. freewheeling
3. quantity
4. combinations and improvements sought

Question 8

Delphi technique

Answer 8

A group problem solving technique:

process to generate ideas from physically dispersed experts over several written questionnaires

Question 9

sequence of stages in the creative process

Answer 9

1. preparation
2. concentration
3. incubation
4. illumination
5. verification