Chapter 7: Individual and Group Decision Making Flashcards
The process by which managers respond to opportunities and threats that confront them by analyzing options and making determinations about specific organizational goals and courses of action.
Decision Making
First of six stages of decision making.
Identifying and diagnosing the problem.
Second of six stages of decision making.
Generating alternative solutions.
Third of six stages of decision making.
Evaluating alternative solutions.
Fourth of six stages of decision making.
Making the choice.
Fifth of six stages of decision making.
Implementing the decision.
Final of six stages of decision making.
Evaluating the decision.
Routine, virtually automatic processes.
Programmed Decisions
Non-routine decision making that occurs in response to unusual, unpredictable opportunities and threats.
Non-Programmed Decisions
Feelings, beliefs, and hunches that come readily to mind, require little effort and information gathering and result in on-the-spot decisions.
Intuition
Decisions that take time and effort to make result from careful information gathering, generation of alternatives, nad evaluation of alternatives.
Reasoned Judgement
A choice made from among available alternatives.
Decision
Kahneman’s thinking type which operates automatically and quickly.
System 1
Kahneman’s thinking type which is slow, deliberate, analytical, and consciously effortful.
System 2
Also called the classical model; the style of decision making that assumes that managers will make logical decisions that will be the optimum in furthering the organization’s best interests.
Rational Model
Difficulties that inhibit the achievement of goals.
Problems
Situations that present possibilities for exceeding existing goals.
Opportunities
Analyzing the underlying causes.
Diagnosis
Models of decision-making style that explain how managers make decisions; they assume that decision making is nearly always uncertain and risky, making it difficult for managers to make optimum decisions.
Nonrational Models of Decision Making
One type of nonrational decision making; the ability of decision makers to be rational is limited by numerous constraints.
Bounded Rationality
One type of nonrational decision-making model; managers seek alternatives until they find one that is satisfactory, not optimal.
Satisficing Model
A person’s explicit and tacit knowledge about a person, a situation, an object, or a decision opportunity.
Expertise
Intuition that stems from expertise.
Holistic Hunch
Intuition based on feelings.
Automated Expertise
Individuals trained in matters of ethics in the workplace, particularly about resolving ethical dilemmas.
Ethics Officers
Graph of decisions and their possible consequences, used to create a plan to reach a goal.
Decision Tree
The translation of principles based on best evidence into organizational practice.
Evidence-Based Management
