Chapter 3 Flashcards
Behavioural Decision Model
describes decision making with limited information and bounded rationality.
Bounded Rationality
describes making decisions within the constraints of limited information and alternatives.
Certain Environment
offers complete information on possible action alternatives and their consequences.
Cost-Benefit Analysis
involves comparing the costs and benefits of each potential course of action.
Creativity
is the generation of a novel idea or unique approach that solves a problem or takes advantage of an opportunity.
Crisis
is an unexpected problem that can lead to disaster if not resolved quickly and appropriately.
Crisis Management
preparation for the management of crises that threaten an organization’s health and well being
Data
raw facts and observations.
Decision
choice among possible alternative courses of action
Information
data made useful for decision making
Information Technology (IT)
helps us acquire, store, process, and transmit information
Information Systems
use IT to collect, organize, and distribute data for use in decision making
Intuitive Thinking
approaches problems in a flexible and spontaneous fashion
Lack of Participation Error
failure to involve in a decision the persons whose support is needed to implement the decision
Management Information Systems (MIS)
meet the information needs of managers in making daily decisions
Multidimensional Thinking
an ability to address many problems at once
Non-Programmed Decisions
applies a specific solution crafted for a unique problem
Optimizing Decision
chooses the alternative giving the absolute best solution to a problem
Problem Solving
involves identifying and taking action to resolve problems
Programmed Decision
applies to a solution from past experience to a routine problem
Risk Environment -
lacks complete information and requires the use of probabilities to determine possible action alternatives and their likely outcomes
Strategic Opportunism
focuses on long-term objectives while being flexible in dealing with short-term problems
Structured Problems
straightforward and clear with respect to information needs
Systematic Thinking
approaches problems in a rational and analytical fashion
Uncertain Environment
lacks so much information that it is difficult to assign probabilities to the likely outcomes of alternatives
Unstructured Problems
have ambiguities and information deficiencies
Advantages Of Group Decisions
- Greater amounts of information, knowledge and expertise are available
- Expand number of alternatives
- Avoids tunnel vision
- Increase understanding and acceptance of outcomes
- Increase commitments of members to work hard
Disadvantages Of Group Decisions
- Social pressures to conform
- Minority domination may occur
- Decision making takes longer thus more costly
FIVE-STEP DECISION-MAKING PROCESS
- Identify and define the problem
- Generate and evaluate possible solutions
- Make decision and conduct ethics double check
- Implement the decision
- Evaluate results
