Chapter 3 - Decision Making Flashcards
Managers use technological, informational, and analytical competencies to solve problems
True
Technological competency
The ability to understand new technologies and use them to their best advantage
Information competency
Ability to gather and use information to solve problems (credible/valuable info)
Analytical competency
Ability to evaluate and analyze information to find meaningful patterns, make decisions & solve real problems
Programmed decisions
Used to solve routine and repetitive problems.
Applies a solution from past experience
Nonprogrammed decisions
Used to solve new or unusual problems full pf ambiguities.
Applies a specific solution that has been crafted to address a unique problem
Systematic thinking
Approaches problems in a rational and analytical fashion; step-by-step
Intuitive thinking
Approaches problems in a flexible & spontaneous fashion. (ex. someone coming up with an imaginative response, or based on experience)
Cognitive styles
The way an individual deals w/ info while making decisions.. There are 4 styles = sensation feelers, intuitive feelers, sensation thinkers, intuitive thinkers
Sensation feelers
One of the 4 cognitive styles
- Likes facts & feelings.
- Analysts & human relations.
- Realistic, open communicator & sensitive
Intuitive feelers
Thoughtful, flexible.
- Prefer broad/global issues. Avoid details comfortable with intangibles
Sensation thinkers
Like clear goals, hard facts. Certainty solutions of high entri.
Intuitive thinkers
Idealistic, theoretical. Comfortable w/ abstraction & unstructured situations
The range of decisions managers have to deal with requires a..
Flexible cognitive approach
Steps in the decision making model
- Identify and define the problem
- Generate & evaluate alternatives
- Decide on the preferred course of action
- Implement the decision
- Evaluate the results & conduct ethics double check ins in all steps
Cost benefit analysis
Computes the expected costs of a decision alternative w/ its expected results
Classical model
Chooses the absolute best solution from a known set of alternatives = optimizing decision
Behavioral model
Cognitive limitations lead to satisfying decisions that choose the 1st satisfactory alternative to come to attention = satisfactory decisions
Proceduralized decision making
Helps to establish the boundaries of the decision space
Lack of participation error
When managers fail to include the right people in the decision-making process
Creativity drivers
Task expertise, task motivation & creativity skills
Advantages of team decision making
- More info available
- More alternatives considered
- Increase understanding
- Increase commitment
Disadvantages of team decision making
- Social pressures to conform
- Domination by a few
- Time delays
Heuristics
Simplifying strategies when making decisions w/ limited info, time energy. Can cause errors
- “shortcuts”
- 3 kinds of heuristics, availability, representativeness, anchoring & adjustment heuristic