Chapter 4: Managers as Decision Makers Flashcards
Define problem solving
involves identifying and taking action to resolve problems
Define knowledge workers
add value to organizations through their intellectual capabilities
Define information competency
the ability to gather and use information to solve problems
Define performance threat
a situation where something is wrong or likely to be wrong
Define performance opportunity
a situation that offers the possibility of a better future if the right steps are taken
Define decision
a choice among possible alternative courses of action
Define programmed decision
applies a solution from past experience to a routine problem
Define nonprogrammed decision
applies a specific solution that has been crafted to address a unique problem
Define systematic thinking
approaches problems in a rational and analytical fashion
Define intuitive thinking
approaches problems in a flexible and spontaneous fashion
Define cognitive style
the way an individual deals with information while making decisions
Define certain environment
offers complete information on possible action alternatives and their consequences
Define risk environment
lacks complete information but offers probabilities of the likely outcomes for possible action alternatives
Define uncertain environment
lacks so much information that it is difficult to assign probabilities to the likely outcomes of alternatives
What are the 5 steps to the decision-making process
o Step 1 is to identify and define the problem
o Step 2 is to generate and evaluate alternative courses of action
o Step 3 is to decide on a preferred course of action
o Step 4 is to implement the decision
o Step 5 is to evaluate results
Define decision-making process
begins with identification of a problem and ends with evaluation of implemented solutions
Define cost-benefit analysis
involves comparing the costs and benefits of each potential course of action
Define classic decision model
describes decision making with complete information
Define optimizing decision
chooses the alternative providing the absolute best solution to a problem
Define behavioral decision model
describes decision making with limited information and bounded rationality
Define satisficing decision
chooses the first satisfactory alternative that presents itself
Define lack of participation error
failure to include the right people in the decision-making process
Define spotlight questioning
highlight the risks of public disclosure of one’s actions
Define creativity
the generation of a novel idea or unique approach that solves a problem or crafts an opportunity
Define availability heuristic
uses readily available information to assess a current situation
Define representativeness heuristic
assesses the likelihood of an occurrence using a stereotyped set of similar events
Define anchoring and adjustment heuristic
adjusts a previously existing value or starting point to make a decision
Define framing error
solving a problem in the context perceived
Define confirmation error
when we attend only to information that confirms a decision already made
Define escalating commitment
the continuation of a course of action even though it is not working
Define crisis
an unexpected problem that can lead to disaster if not resolved quickly and appropriately
