Chapter 9: Managerial Decision Making Flashcards
Programmed and Non-programmed decisions
Programmed- recurring problems, apply rule
Non-programmed- unique situations, poorly defined, unstructured, important consequences
Certainty vs Uncertainty
Certainty- situation in which all information is fully available
Uncertainty- depends on the amount and value of information available
What is ambiguity?
making decisions in difficult situations, there is often no “right” answer
What is satisficing
decision makers choose the first solution that satisfies minimal decision criteria
What is the classical model?
Clear problems and goals, certainty, full information about alternatives
What is the administrative model?
Vague problems and goals , uncertainty, limited information about alternatives
What is the political model?
Pluralistic conflicting goal, uncertainty or ambiguity, inconsistent viewpoints and ambiguous information
6 steps in the managerial decision making principal
- Recognition of decision requirement
- Diagnosis and analysis of causes
- Development of alternatives
- Selection of desired alternatives
- Implementation of chosen alternative
- Evaluation and feedback
What is Directive style?
People who prefer simple, clear-cut solutions to problems
What is Analytic style?
Managers prefer complex solutions based on a lot of data
What is Conceptual style?
Managers like a broad amount of information
What is Behavioral style?
Managers with a deep concern for others
