Chapter 5 Flashcards
Chapter 5 test
The process by which managers respond to opportunities and threats by analyzing options and making determinations about specific organizational goals and courses of action
Decision Making
Routine, virtually automatic decision making that follows established rules or guidelines
Managers have made the same decision many times before.
There are rules or guidelines to follow based on experience with past decisions.
Program decision making
Non-routine decision making that occurs in response to unusual, unpredictable opportunities and threats
Non programmes decision making
Feelings, beliefs, and hunches that come readily to mind, require little effort and information gathering and result in on-the-spot decisions
Intuition
Feelings, beliefs, and hunches that come readily to mind, require little effort and information gathering and result in on-the-spot decisions
Reasoned judgement
An approach to decision making that explains why decision making is inherently uncertain and risky and why managers usually make satisfactory rather than optimum decisions
Administrative Model
Cognitive limitations that constrain one’s ability to interpret, process, and act on information
Happens because the full range of decision-making alternative is unknowable in most situations and the consequences are uncertain
Considerations
Bounded Rationality -
Incomplete Information -
The degree of probability that the possible outcomes of a particular course of action will occur
The probabilities of alternative outcomes cannot be determined and future outcomes are unknown
Information that can be interpreted in multiple and often conflicting ways.
Managers have neither the time nor money to search for all possible alternatives and evaluate potential consequences
Risk
Uncertainty
Ambiguous information
Time constraints and information cost
- A pattern of faulty and biased decision making that occurs in groups whose members strive for agreement among themselves at the expense of accurately assessing information relevant to a decision
- Critical analysis of a preferred alternative, made in response to challenges raised by a group member who, playing the role of devil’s advocate, defends unpopular or opposing alternatives for the sake of argument
- Diverse groups are often less prone to groupthink because group members already differ from each other and thus are less subject to pressures for uniformity
Group think
Devil advocacy
Diversity among decision makers
The process through which managers seek to improve employees’ desire and ability to understand and manage the organization and its task environment
An organization in which managers try to maximize the ability of individuals and groups to think and behave creatively and thus maximize the potential for organizational learning to take place
A decision maker’s ability to discover
original and novel ideas that lead to feasible alternative
courses of action
Organizational learning
Learning organization
Creativity
Opportunity and freedom to generate new ideas
Opportunity to experiment and learn from mistakes
No punishment for ideas that seem outlandish
Constructive feedback
Certain conditions enhance individual creativity
Managers meet face-to-face to generate and debate many alternatives.
Group members are not allowed to evaluate alternatives until all alternatives are listed.
Group member are encouraged to be as innovative and radical as possible.
When all alternatives are listed, the pros and cons of each are discussed and a short list created.
Brainstorming
Loss of productivity in brainstorming sessions due to the unstructured nature of brainstorming
A decision-making technique in which group members write down ideas and solutions, read their suggestions to the whole group, and discuss and then rank the alternatives
A decision-making technique in which group members do not meet face-to-face but respond in writing to questions posed by the group leader
Production blocking
Normal group technique
Delphi technique
An individual who notices opportunities and decides how to mobilize the resources necessary to produce new and improved goods and services
An individual who pursues initiatives and opportunities and mobilizes resources to address social problems and needs in order to improve society and wellbeing through creative solutions
- A manager, scientist, or researcher who works inside an organization and notices opportunities to develop new or improved products and better ways to make them
Entrepreneur
Social entrepreneur
Intrapreneur
- Mobilization of resources to take advantage of an opportunity to provide customers with new and improved goods and services
- A manager who takes “ownership” of a project and provides the leadership and vision that take a product from the idea stage to the final customer
- A group that is deliberately separated from normal operations to encourage members to devote all their attention to developing new products
Entrepreneurship
Product champion
Skunkworks
