Exam 3 CHP 10 Flashcards
Who makes strategic decisions?
Top management teams, CEO, Board of directors
Who makes tactical decisions?
Managers
Who makes operational decisions?
Employees
The process of choosing a particular action that deals with a problem or opportunity.
Decision making
A simple, routine matter for which a manager has an established decision rule.
Programmed decision
A new, complex decision that requires a creative solution.
Non-programmed decision
A logical, step-by-step approach to decision making, with a thorough analysis of alternatives and their consequences.
Rationality
Describes the steps that decision-makers should consider if their goal is to maximize the quality of their outcomes. (Model)
Rational decision-making model
A theory that suggests that there are limits upon how rational a decision-maker can actually be.
Bounded Rationality
States that individuals knowingly limit their options to a manageable set and choose the first acceptable alternative.
Bounded rationality model
To select the first alternative that is “good enough” because of costs and time.
Satisfice
Short cuts in decision making to save mental activity
Heuristics
An individual’s preference for gathering information and evaluating alternatives.
Cognitive Style
What are the 4 steps to Z problem-solving model?
- Sensing
- Intuition
- Thinking
- Feeling
A theory that contends that decisions in organizations are random and unsystematic.
Garbage Can Model
The tendency to choose options that entail fewer risks and less uncertainty.
Risk Aversion
The tendency to continue to commit to resources to a falling course of action.
Escalation of commitment
Making use of either or both sides of the brain
Brain-lateralized
A fast, positive force in decision-making utilized at a level below consciousness involves learned patterns of information.
Intuition
A process influenced by individual and organizational factors that result in the production of novel and useful ideas, products, or both.
Creativity
Deterioration of mental efficiency, reality testing, and moral judgment resulting from in-group pressures.
Groupthink
A structured approach to group decision-making that focuses on generating alternatives and choosing one.
Nominal Group Technique (NGT)
The debate between two opposing sets of recommendations.
Dialectical Inquiry
A small group of employees works voluntarily on company time to address work-related problems.
Quality circle
