PHASE 2 - CH. 15: DECISION MAKING Flashcards Preview

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Flashcards in PHASE 2 - CH. 15: DECISION MAKING Deck (29):
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decision making

process of indentifying issues and making choices from alternative courses of action

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rational decision making

early research on decision makng focus on ways individuals seek to maximize outcome/achieve, personal benefit, researchers believe individual often make decision based on rational thought process

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optimized self interest is what theory

theory of rational chiocie

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theory of rational choice

when there is a choice, individuals try to make best possible decision and one that maximizes expected utility, individuals assign numberical value to each alternative

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process of rational decision making

1. define problems/opportunity, objectives/goals defined, obejtcies weighted accordin to importance of each, possible course of action/aterlatnives are considered, each objevtive rated according to how well it achieves desired course of action, optimal decision chosen

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how managmers make decisions

time, releveant info, bounded rationality

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bounded rationality

set of boundaries and constraints tending to complicate rational decision makign process

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satisficing

ac tof choosing solution " good enough"

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conditions of certainty

indivudals have all info needed to make best possible decision

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ambiguity

situtions characterized by uncertainty/risk where optimal decision isnt clear or obvious

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conditions of risk

individuals have info about objectives, priorites, outcomes for each course of action

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confiditions of uncertainty

individuals have info relatied to objectives priorites not complete info about alternative courses of action/possible outcomes of each one

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intuitive decision making

subconcious activity, insights

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moral judgement

quick morla intuitiions, slower moral reasoning

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heuristis

bias can someitmes arise from our use of this quick judgements enabling decision makers to act with speend and efficiency

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avaialbity heuristic

emtional and vivid moments more memorable than unecomtional vague moments - recall vivid charged memories

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representativie hueristsic

individuals tend to look for traits in another person or situation correspondin iwth previously formed stereotypes confirm initial impression stereotyp

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adjustment heuristic

individuals make estimates and choices based on certain starting point, emphasize on first info recieved and dont adjust, alternatives fail to be considered, helpful in accel decision maing process

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confirmation bias

occurs when ppl haave already made up mind aobut decision and seek info confirming decision and ignorie to seek info that may disconfirm decision

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escalaation of commitment

arises when we are istutionary where we have already invested a lot and are faced with chioice of continuing to invest or exit, can weigh on future decisions

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stattus quoo bias

adhere ot the here and now, overweight info that supports what we know, neglect any info that supports beneficial change many people confy with kown, not unkonwn

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framing

decidion making bias arising from alternative prsentations of same info that in turn can significantly alter decisions, examin two choices and choosing between posible losses, take risker option, choose between two gains

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programmed decision

applied to reptitive well definied prblems with set of preestablished atlertnative routine procedures, no social consensus, dont need, manager, higher level employee

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nonprogrammed decision

respose to novel, poorly defined unstrucure distations made under contitions of risk and uncertainty, limited info exists

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classical (rational) model of decision making

maximize economic/toher outcomes using rational choice process- accomplish organizational goals, logic to prioritize and of cetainty

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administrative model

how managers make non programmd decisions - lack suffieincet info, bounded rationality, satisficiting central first otpion even tho othe options exist, rely on ase of knowledge, experience, intution to make decisions

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political model

valuable for making non program decisions, acknowledges most organization decisions involve many managers with diff goals, proioties, build/bargian coalisitions with their managers to get decisions implemented

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garbage acan model

focus on multiple decisions made throughout orgainzaiton, random unpredictable, palyfullness

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imrpove decision making skills

consider several persopectives, manage biase, scripts