Chapter 7 Flashcards
(23 cards)
What is a decision?
A choice made from alternative courses of action in order to deal with a problem
What is a Problem?
difference between a desired situation and the actual situation
What is decision making?
process of choosing among alternative courses of action to resolve a problem
What is a programmed decision?
Made in response to situations that are routine
What is a non-programmed decision?
Made in response to situations that are unique
What is certainty?
condition that exists when decision makers are fully informed about a problem.
what is risk?
condition that exists when decision makers must rely on incomplete information
What is uncertainty
condition when little or no factual information is available about a problem.
Classical Model of decision making
asserts that managers are logical, rational, individuals who make decisions that are in the best interests of the organizations
administrative model of decision making
recognizes that people do not always make decisions with logic and rationality
Bounded rationality
the idea that people have limits or boundaries to their rationality
satisficing
the decision maker’s decision to choose the first alternative that appears to resolve the problem
political model of decision making
Based on the idea that certain individuals or groups will be able to influence others to achieve their goals.
Decision Styles
The way an individual visualizes and thinks about situations.
Intuition
immediate comprehension that something is the case, seemingly without the use of any reasoning process
What is framing?
tendency to view positively presented information favorably and negatively presented information unfavorably
Escalation of commitment
tendency to persist with a failing course of action.
What is confidence?
A person’s faith that his or her decisions are reliable and good.
What is risk propensity?
A person’s willingness to take risks when making decisions
What is brainstorming?
A technique in which group members spontaneously suggest ideas to solve a problem.
What is a nominal group technique?
involves the use of a highly structured meeting agenda and restricts discussion or interpersonal communication during the decision making process
What is groupthink?
A phenomenon occurring when cohesive “in-groups” let the desire for consensus override sound judgment.
Devil’s Advocate
When a member of the team argues for an alternative position; can be helpful in avoiding groupthink because it encourages team members to carefully consider alternative courses of action.
