decision making Flashcards

1
Q

Decision Making

A

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

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2
Q

A decision is needed because

A

there is a discrepancy between an existing and a desired state of affairs.

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3
Q

A systematic, step-by-step process for making decisions

A

Identify and Verify the problem
Develop an understanding of the problem
Generate alternatives
Evaluate alternatives
Choose an alternative
Implement the plan
Control: measure and adjust

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4
Q

Programmed Decision

A

One that recurs often enough for a decision rule to be developed

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5
Q

Decision Rule

A

A statement that tells a decision-maker which alternative to choose based on the characteristics of the decision situation

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6
Q

Non-programmed Decision

A

One that recurs infrequently and for which there is no previously established decision rule

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7
Q

Problem Solving

A

A special form of non-programmed decision-making in which the issue is unique—it requires developing and evaluating alternatives

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8
Q

types of decisions

A

programmed decision
problem solving
programmed decision
decision rule

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9
Q

Rational Model for Nonprogrammed Decision Making

A

A prescriptive model of decision making that assumes the decision maker can identify and evaluate all possible alternatives and their consequences and rationally choose the most appropriate course of action.

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10
Q

Administrative Model

A

A descriptive model approach to decision making that explains why decision making is inherently uncertain and risky and why managers can rarely make decisions in the manner prescribed by the classical model

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11
Q

Ambiguous information

A

Information whose meaning is not clear allowing it to be interpreted in multiple or conflicting ways

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12
Q

Condition of Certainty

A

Outcomes of each alternative are known

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13
Q

information condition types

A

Condition of Certainty
Condition of Risk
Condition of Uncertainty
Condition of Ambiguity

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14
Q

Condition of Risk

A

Certainty of an outcome is unknown but there is only enough
information to estimate probabilities of various outcomes

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15
Q

Condition of Uncertainty

A

There is insufficient information to estimate the probability
of possible outcomes

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16
Q

Condition of Ambiguity

A

Neither the problem nor the alternatives are clear.

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17
Q

Reason for Decision:

A

Survival
Necessity
Standard Requirement
Comfort or Cosmetic
Perceived Duty

18
Q

Decision Strategies types

A

prospector, analyzer, defender, reactor

19
Q

Prospector

A

pioneer, risk taker, first mover, leader

20
Q

Analyzer

A

observes prospectors and moves when they
feel the decision has been shown to be correct and
the time is right

21
Q

Defender

A

Decisions are made only in defense

22
Q

Reactor

A

Decisions are a last option process that occurs
due to some other event

23
Q

Hybrid Approach

A

Managers use a combination of the Rational and
Administrative approaches to make decisions

24
Q

Creativity

A

The ability to generate new ideas or to conceive of new perspectives on existing ideas

25
Q

Entrepreneurs

A

Individuals who notice opportunities and take the
responsibility for mobilizing the resources necessary
to produce new and improved goods and services.

26
Q

Intrapreneurs

A

Individuals (managers, scientists, or researchers) who
work inside an existing organization and notice an
opportunity for product improvements and are responsible
for managing the product development process.

27
Q

Intuition

A

feelings, beliefs, and hunches that come readily to mind

28
Q

Reasoned judgment

A

decisions that take time and effort to make and result from careful information gathering, generation of alternatives, and evaluation of alternatives

29
Q

Sub-Optimizing

A

Knowingly accepting less than the best possible outcome
to avoid unintended negative effects on other aspects of
the organization

30
Q

Satisficing

A

Is examining alternatives only until a solution that meets
minimal requirements is found

31
Q

Escalating Commitment

A

Committing considerable resources to a project and then
committing more, even if evidence shows the project is
failing

32
Q

Prior Hypothesis Bias

A

Allowing strong prior beliefs about a relationship between
variables to influence decisions based on these beliefs even
when evidence shows they are wrong

33
Q

Representativeness

A

The decision maker incorrectly generalizes a decision from
a small sample or a single episode

34
Q

Illusion of Control

A

The tendency to overestimate one’s own ability to control
activities and events

35
Q

Prospect Theory

A

Argues that when people make decisions under a
condition of risk they are more motivated to avoid
losses than they are to seek gains

36
Q

Agency Theory

A

Occurs when one person or entity (agent) is able to make decisions on behalf of, or that impact, another person or entity (principal)

37
Q

Social Identity Theory

A

This theory states that a person’s sense of who they are is based on their group membership(s). Therefore, their decisions are based on the expectations, norms, values and standard operating procedures of the group.

38
Q

Individual Participation

A

The degree to which employees should be involved
in the decision making process

39
Q

Benefits of Participation

A

Incorporates more diverse knowledge, experience,
perspectives and skill sets

40
Q

Delphi Nominal Group Technique

A

Written approach to creative problem solving.

Group leader writes a statement of the problem to
   which managers respond

Questionnaire is sent to managers to generate solutions

Team of managers summarizes the responses and   
   results are sent back to the participants

 Process is repeated until a consensus is reached