programmed decision
a simple, routine matter for which a manager has an established decision rule.
nonprogrammed decision
a new, complex decision that requires a creative solution
effective decision
a timely decision that meets a desired objective and is acceptable to those individuals affected by it.
rationality
a logical, step-by-step approach to decision making, with a thorough analysis of alternatives and their consequences.
bounded rationality
a theory that suggests that there are limits to how rational a decision maker can actually be.
satisfice
to select the first alternative that is “good enough” because the costs in time and effort are too great to optimize
heuristics
shortcuts in decision making that save mental activity
escalation of commitment
the tendency to continue to support a failing course of action
cognitive style
an individual’s preference for gathering information and evaluating alternatives
risk aversion
the tendency to choose options that entail fewer risks and less uncertainty
intuition
a fast, positive force in decision making that is utilized at a level below consciousness and involves learned patterns of information
creativity
a process influenced by individual and organizational factors that results in the production of novel and useful ideas, products, or both
synergy
a positive force that occurs in groups when group members stimulate new solutions to problems through the process of mutual influence and encouragement within the group
social decision schemes
simple rules used to determine final group decisions
groupthink
a deterioration of mental efficiency, reality testing, and moral judgment resulting from pressures within the group
group polarization
the tendency for group discussion to produce shifts toward more extreme attitudes among members
brainstorming
a technique for generating as many ideas as possible on a given subject, while suspending evaluation until all the ideas have been suggested
nominal group technique (NGT)
a structured approach to group decision making that focuses on generating alternatives and choosing one.
devil’s advocacy
a technique for preventing groupthink in which a group or individual is given the role of critic during decision making
dialectical inquiry
a debate between two opposing sets of recommendations
quality circle
a small group of employees who work voluntarily on company time, typically one hour per week, to address work-related problems such as quality control, cost reduction, production planning and techniques, and even product design
quality team
a team that is part of an organization’s structure and is empowered to act on its decisions regarding product and service quality.
participative decision making
decision making in which individuals who are affected by decision influence the making of those decisions