Chapter 9 Flashcards
Decision Making
Course of action from among two or more possible alternatives with the goal of arriving at a solution.
Decision-Making
Habit, a rule, or a procedure already in place to help you make the decision.
Programmed decision
An unusual or unique situation arises, where there is not a rule or policy in place to handle it.
Non-programmed decision
Guide the direction of the business, and have long-term impacts.
Strategic Decision
Whether or not to offer a new product line or relocate a factory.
Strategic Decision
Help implement the strategic decisions that have been made.
Tactical Decision
Day-to-day running of the business.
Operational Decision
Rational Decision Making Model
Identify the problem
Identify the criteria
Weight the criteria
Identify alternatives
Analyze alternatives
Make the decision
Evaluate
Our judgment being clouded by information already presented.
Anchoring
You feel “trapped” in a decision you have made previously.
Sunk Decision
Often occurs due to ego, as it can be hard to admit we made a wrong decision.
Sunk Decision
Refers to the fact that change can be difficult, therefore it may seem easier to stick with what has already been done or stick with the current decision.
Status Quo
Occurs when we believe our abilities, or our companies’ abilities to be better than they are, resulting in misleading of our own abilities or skills.
Overconfidence bias
Occurs when a group of people make a decision that isn’t optimal and which is spawned by the urge to conform to what the person believes the group wants.
Groupthink
People in the group feel they can’t be “wrong” and therefore may not think thoroughly about the courses of action.
Illusion of invulnerability
This can lead people to ignore possible outcomes and moral problems in the decision they are making.
Unquestioned Beliefs
Can cause “in-group” members to ignore “out-group” members who may challenge the ideas of the group.
Stereotyping
Can cause people to avoid speaking out against what they believe to be the wishes of the group.
Self-censorship
Illusions of unanimity
Can lead members to believing everyone is in agreement.
This can be placed on members who pose questions and question the group. It can give a feeling that these individuals are unloyal to the group, which often leads to self-censorship.
Direct pressure to conform
Helps with group decision making by ensuring that all members participate fully.
Nominal Group Technique
(NGT)
A group process using written responses to a series of questionnaires instead of physically bringing individuals together to make a decision.
The Delphi Technique
A decision-making rule in which each member of the group is given a single vote and the option receiving the greatest number of votes is selected.
Majority rule
Groups may use when the goal is to gain support for an idea or plan of action.
Consensus
Upper level managers tend to make _________ decisions
Strategic
Middle managers tend to make ________ decisions.
Tactical
Supervisors or “leads” tend to make _________ decisions
Operational
