Chapter 7 Flashcards
Decision
choice made from availability
Decision making
process
Rational Decision Making
How managers should make choices
it tells you to optimize
this is ideal
known as classical model
RDM in depth
identify the problem
think up solutions
evaluate alternatives
implement
ITEI
Non rational Decision Making
assume that decision making is nearly always uncertain and risky, making it difficult for managers to make optimal choices
bounded rationality
limited by numerous constraints
Hindrances
Complexity Time and money constraints Imperfect Info Information overload Conflicting goals Different priorities Diff. Cognitive capacity
evidence based
superficial
GENERAL decision making styles
Risk propensity-gamble
Decision making styles-how individual perceives/recieves info
Decision making styles
ANALYICAL-HIGH (information, careful)
CONCEPTUAL-HIGH (broad)
DIRECTIVE-LOW (effiecient)
BEHAVIORAL-LOW (supportive, written info)
Ethical Decision Tree
Is the proposed action legal?
Maximize shareholder?
is it ethical? do it
would it be ethical?-do it but disclose
Ineffective responses to a decision situation
RELAXED AVOIDANCE
RELAXED CHANGE
DEFENSIVE AVOIDANCE
PANIC
group solvingn techniues
consensus
brainstorming
computer aided decision making
chauffer
group driven
3 EFFECTIVE reactions to decision making
importance
credibility
urgency
