Chapter 12 Flashcards
Decision making
Solving a problem or seizing an opportunity
Routine problems
Arise regularly and can be addressed through standard responses and programmed decisions.
Non routine problems
Unique and new, need creative problem solving, crafted decisions, specifically tailored to the situation.
Decision environments
Certain, risk, uncertain
Decision making process
Recognise and define problem/opportunity, identify and analyse alternative courses of action, chose preferred course of action, implement decision.
Classical decision theory
Complete certainty
Behavioural decision theory
Perception, satisficing, managers seek alternatives only until they find one that looks satisfactory.
Group decision making
Advantages: more info and knowledge, greater number and diversity of alternatives, improved acceptance and understanding of final decisions.
Disadvantages: more time consuming, disagreement can cause delays and hard feelings, open do individual dominance, groupthink may arise.
Groupthink
Tendency to conform because group members are unwilling to criticise others ideas and suggestions. Barrier to critical thinking.
Escalating commitment
Tendency for group to continue with course of action even when feedback suggests failure.
Issues in decision making
Culture, technology, ethics and SR.
