Chapter 6 Flashcards
Managers are often referred as…
Decision makers
Choice made from available alternatives
Decision
The process of identifying problems and opportunities and being able to resolve them.
Decision making
Decision made in order to a situation that occurs often enough to enable decision rules.
Programmed decision
Decision made in order to a situation that is unique, poorly defined and largely unstructured.
Nonprogrammed decision
It is the situation in which all the information the decision maker needs is available
Certainity
A situation in which the future outcomes associated with each alternative are subject to change.
Risk
It means that managers know which goals they need to achieve, but information about the alternatives and future events is incomplete.
Uncertainity
Condition in which the goals to be achieved or the problem to b solved are unclear, alternatives are difficult to define, and information about outcomes are unavailable.
Ambiguity
Decision making model based on the assumtion that managers should make logical decisions that will be for the best of the organization’s economic interests.
Classical model
Approach from the classical decision making model, which defines how a decision maker should make decisions, an provides guidelines for reaching an ideal outcome.
Normative
Decision making model that describes how managers actually make decisions in situations characterized by nonprogrammed decisions, uncertainity, and ambiguity.
Administrative model
Approach from the administrative decision making model that describes how managers actually make decisions instead of dictating how they should.
Descriptive
The concpet that people have time and cognitive ability to process only a limited amount of information on which to base decisions.
Bounded rationality
When managers choose the first solution alternative that satisfies a minimal decision criteria, regardless of whether better solutions are presumed to exist.
Satisficing
The immediate comprehension of a decision situation based on past experience but wothout conscious thought.
Intuition
Informal alliance among managers who support a specific goal.
Coalition
A situation in which organizational accomplishments have failed to meet established goals.
Problems
A situation in which managers see potential organizational accomplishments that exceed current goals.
Opporunity
The step in the decision making process in which managers analyze underlying causal factors associated with the decision situation.
Diagnosis
The willingness to undertake risk with the opportunity of gaining an increased payoff.
Risk propensity
Step in the decision making process that consists on translating the chosen alternative into action.
Implementation
Differences among people with respect how they percieve problems and make decisions.
Decision styles
Technique that uses a group to spontaneously suggest a broad range of alternatives for decision making.
Brainstorming
Technique that brings people together in an interactive group over a network to suggest alternatives.
Electronic Brainstorming
Technique that uses an individual to challenge the assumptions made by a group to prevent premature consensus.
Devil’s advocate
Technique in which people are assigned to express competing points to express different pints of view.
Point-Counterpoint
Tendency of people in groups to suppress contrary opinions.
Groupthink
Continue to invest money and resources in a failing decision.
Escalating commitment
Hardware, software, telecommunications, database management, and other technologies used to store, process, and distribute information.
Information technology (IT)
The process of systematically gathering knowledge, making it widely available throughout the organization, and fostering a culture of learing.
Knowledge management
Raw unsummarized, unanalyzed facts and figures.
Data
Data that has been converted into a meaningful and useful context for the receiver.
Information
Conclusion drawin from information after it is linked to other information and compared to whats already known.
Knowledge
A single point of access fr employees to multiple sources of information that provide personalized access to the corporate internet.
Knowledge Management portal
A website that allows anyone with access, to edit content through a simple browser based interface.
Wiki
Software that analyzes data from multiple sources and extracts elements that might be significant.
Business Intelligence Software
A computer based system that provides information and support for effective managerial decision making.
Management Information System (MIS)
Networked information system that collects, processes and provides information about an organization’s entire enterprise.
Enterprise resource planning (ERP) system
Web log that allows individuals to post opinions and ideas.
Blog
Online interaction in a community formatwhere people share personal information and photos, produce and share all sorts of information and opinions, or unify activists and raise funds.
Social networking
File sharing that allows PC’s to communicate directly with one another over the internet, bypassing central databases, servers, etc.
Peer-to-peer file sharing
Any business that takes place in any digital processes over a computer network rather than in physical space.
E-business
Business exchanges or transactions that occur electronical.
E-commerce
An internal communications system that uses the technology standards of the internet but is accesible only by people within the organization.
Intranet
An external communications system that uses the internet and is shared by two or more rganizations.
Extranet
A systematic attempt to increase sales through adding new target groups.
Market expansion
