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