Chapter 4 Flashcards
act of choosing one alternative from among a set of alternatives
decision making
recognizing and defining the nature of a decision situation, identifying alternatives, choosing the best alternative, and putting it into practice
decision-making process
what are the Types of Decision Making
Programme Decision
Non-Programme Decision
relatively structured or recurs with some frequency
Programme Decision
relatively unstructured and occurs much less often than a programme decision
Non-Programme Decision
decision maker knows what the alternatives are and what conditions are associated with each alternatives
State of Certainty
availability of each alternatives and its potential payoffs and costs are all associated with probability estimates
state or risk
decision maker does not know all the alternatives, the risk associated with each, or likely consequences of each alternatives
state of uncertainty
tells the manager how they should make decision
The Classical Model of Decision Making
commitment to finding and using the best theory and data available at the time to make decision
Evidence Based Management
What are the Behavioral Aspects of Decision Making
Administrative Model
Bounded Rationality
Satisficing
Coalition
Intuition
Escalation of Commitment
argues that decision makers use incomplete and imperfect information, are constrained by bounded rationality and tend to _______ when making decisions
Administrative Model
“satisfice”
concept suggesting that decision makers are limited to their values and unconscious reflexes, skills and habits
Bounded Rationality
search for alternatives only some minimum standard sufficiency
Satisficing
an informal alliance of individuals or groups formed to achieve a common goal
coalition
innate belief about something, without conscious consideration
intuition
when a decision maker stays with a decision even when it appears to be wrong
escalation of commitment
extend to which a decision maker is willing to gamble when making a decision
risk propensity
personal beliefs about right and wrong behavior
individual ethics
members openly discuss, argue about, and agree on the best alternative
Interacting Group or Team
group arrives at a consensus of expert opinion
Delphi Group
structured technique used to generate creative and innovative alternatives or ideas
Nominal Group
occurs when a group or team’s desire for consensus and cohesiveness overwhelms its desire to reach the best possible decision
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