Chapter 7 Flashcards
the precess by whic managers respond to opportunites and threats by analyzing options and making determinations about specific organizational goals and courses of action
decision making
routine, vitually automatic decision making that follows established rules or guidelines
programmed decision making
nontoutine decision making that ocurs in response to unusual, unpredictable opportunities and threats
non programmed decision making
feelings, beliefs, and hunches that come readily to mind, require little efffort and information gathering, generation of alternatives, and evaluation of alternatives
intutition
a decision that takes time and effort to make and results from careful information gathering, generation of alternatives, and evaluation of alternatives
reasoned judgement
a prescirpive approach to decsion making based on the assumption that the decision maker can identify and evaluate all pssible aternatives and their consequences and taionally choose the most appropriate course of action
classical decision making model
the most appropriate decision inlight of what managers believe to be the most desirable future consequences for the organiztion
optimum decision
an approahc to decision making that explains why decision making is inherently uncertain and risky and why managers usually make satisfacory rather than optimum decisions
administrative model
cognitive limitations that constrain ones ability to interpret, process, and act on information
bounded rationality
the degree of probability that the possible outcomes of a particular course of action will occur
risk
unpredictability
uncertainty
information that can be interpreted in multiple and often conflicting ways
ambiguous information
searching for and choosing an acceptable, or satisfactory, response to problems and opportunities, tather than tring to make the best decision
satisficing
rules of thumb that simplify decision making
heurisitics
errors taht people make over and over and that result in poor decision making
systematic errors
a cognitive bias resulting from the tendency to base decisions on strong prior beliefs even if evidence shows that those beliefs are wrong
prior hypothesis bias
a cognitive bias resulting form the tendency to generalize inappropriately from a small sample or froma single vivid event or episode
representative bias
a source of cognitive bias resulting from the tendency to overestimate ones own ability to control activities and events
illusion of control
a source of cognitive bias resulting form the tendency to commit additional resources to a project even if evidence shows that the project is failing
escalating commitment
a pattern of faculty and biased decidion making that occurs in groups whose members struve for agreement among themselves at the expense of accurately assessing infomration relevant to a decision
groupthink
critical analysis of a preferred alternative, made in response to challenges raised by a group member who, playing the role of devils advocate, defends unpopular or opposing alternatives for the sake of argument
devils advocacy
critical analysis of two preferred aternatives inorder to find an even better alternative for the organization to adopt
dialectial inquiry
the process through which mangers seek to improve employees desire and ability to understand and manage the organiztion and its task environment
organiztional learning
an organization in which managers try to maximize the ability of individuals and groups to think and behave ceatively and thus maximize the potential for organizaiotnal learning to take placee
learning organization
a decision makers ability to discover original and novel ideas tha lead to feasible alternative courses of action
creativity
a loss of productivity in brainstorming sessions due to the unstructured nature of brainstorming
production blocking
a decision maknig technique in which group members write down ideas and solutions, read their suggestions to the whole group, and discuss and then rank the alternatives
nominal group technique
a decison making technique in which group members do no t meet face to face but respond in wiriting to questions posed by the group leader
delphi technique
an individual who notices opportunites and mobilizes resouces necessary to produce new and improved goods and services
entrepreneur
and individual who pursues initiatives and opportunities and mobizes resourecs to address social problems and nees in order to improve society and well being through creative solutions
social entrepreneur
a manager, scientist, or researcher who works inside an organzition and notices opportunites to develop new or improved products and better ways to make them
intraprenuer
