Chapter 4 Flashcards
optimizing decision
a type of decision in which one chooses the alternative providing the absolute best solution to a problem
creativity
the generation of a novel idea or unique approach that solves a problem or crafts an opportunity
cost-benefit analysis
the process of comparing the costs and benefits of each potential course of action
classical decision model
a decision-making model that describes decision making w complete information
programmed decisions
a type of decision that applies a solution from past experience to a routine problem
spotlight questions
a set of questions that highlight the risks of public disclosure of one’s actions
nonprogrammed decisions
a type of decision that applies a specific solution that has been crafted to address a unique problem
information technology
the ability to gather and use information to solve problems
confirmation error
a decision-making error that occurs when we attend only to information that confirms a decision already made
uncertain environment
a business environment that lacks so much information that it is difficult to assign probabilities to the likely outcomes of alternatives
intuitive thinking
the process of approaching problems in a flexible and spontaneous fashion
certain environment
a business environment that offers complete information on possible action alternatives and their consequences
anchoring and adjustment heuristic
a decision-making technique that adjusts a previously existing value or starting point to make a decision
availability heuristic
a decision-making technique that uses readily available information to assess a current situation
cognitive styles
the different ways individuals deal with information while making decision
behavioral decision model
a decision-making model that describes decision making w limited information and bounded rationality
framing error
a decision-making error in which a problem is solved in the context perceived
satisficing decisions
a type of decision in which one chooses the first satisfactory alternative that presents itself
decision-making process
a process that begins w identification of a problem and ends w evaluation of implemented solutions
systematic thinking
the process of approaching problems in a rational and analytical fashion
representativeness heuristic
a decision-making technique that assesses the likelihood of an occurrence using a stereotyped set of similar events
knowledge workers
employees who add value to organizations through their intellectual capabilities
lack-of-participation error
the failure to include the right ppl in the decision-making process
performance threat
a situation where something is wrong or likely to be wrong
crisis
an unexpected problem that can lead to disaster if not resolved quickly and appropriately
risk environments
a business environment that lacks complete information but offers probabilities of the likely outcomes for possible action alternatives
escalating commitment
the continuation of a course of action even though it is not working
problem solving
identifying and taking action to resolve problems
performance opportunity
a situation that offers the possibility of a better future if the right steps are taken
decision
a choice among possible alternative courses of action
