A choice from two or more alternatives.
An obstacle that makes achieving a desired goal or purpose difficult.
Criteria that define what's important or relevant in resolving a problem.
Rational Decision Making
A type of decision making in which choices are logical and consistent and maximize value.
Decision making that's rational but limited (bounded) by an individual's ability to process information.
To accept solutions that are "good enough."
Escalation of Commitment
An increased commitment to previous decision despite evidence that it may have been a poor decision.
Intuitive Decision Making
Making decisions on the basis of experience, feelings, and accumulated judgment.
A straightforward, familiar, and easily defined problem.
A repetitive decision that can be handled using a routine approach.
A series of sequential steps used to respond to a well-structured problem.
An explicit statement that tells managers what can or cannot be done.
A guideline for making decisions.
A problem that is new or unusual and for which information is ambiguous or incomplete.
A unique and nonrecurring decision that requires a custom-made solution.
A situation in which a decision maker can make accurate decisions because all outcomes are known.
A situation in which the decision maker is able to estimate the likelihood of certain outcomes.
A situation in which a decision maker has neither certainty nor reasonable probability estimates available.
Business Performance Management Software
IT software that provides key performance indicators to help managers monitor efficiency of projects and employees. Also known as corporate performance management software.
Linear Thinking Style
A decision style characterized by a person's preference for using external data and facts and processing this information though rational, logical thinking.
Nonlinear Thinking Style
A decision style characterized by a person's preference for internal sources of information and processing this information with internal insights, feelings, and hunches.
Rules of thumb that managers use to simplify decision making.
Defining an organization's goals, establishing an overall strategy for achieving those goals, and developing plans to integrate and coordinate work activities.
Desired outcomes or targets.
Documents that outline how goals are going to be met.
Official statements of what an organization says -and what it wants its various stakeholders to believe- its goals are.
Goals that an organization actually pursues, as defined by actions of its members.
Plans that apply to an entire organization and establish the organization's overall goals.
Plans that encompass a particular operational area of an organization.
Plans with a time frame beyond three years.
Plans covering one year or less.
Plans that are clearly defined and that leave no room for interpretation.
Plans that are flexible and that set out general guidelines.
A one-time plan specifically designed to meet the needs of a unique situation.
Ongoing plans that provide guidance for activities performed repeatedly.
Traditional Goal Setting
An approach to setting goals in which top managers set goals that flow down through the organization and become subgoals for each organizational area.
An integrated network of goals in which the accomplishment of goals at one level serves as the means for achieving the goals, or ends, at the next level.
Management By Objectives (MBO)
A process of setting mutually agreed upon goals and using those goals to evaluate employee performance.
A concept which says that plans should extend far enough to meet the commitments made when the plans were developed.
Formal Planning Department
A group planning specialists whose sole responsibility is helping to write organizational plans.
What managers do to develop an organization's strategies.
Plans for how an organization will do what it's in business to do, how it will compete successfully, and how it will attract and satisfy its customers in order to achieve its goals.
A design for how a company is going to make money.
Strategic management process
a six step proces that encompasses strategic planning implementation and evaluation.
positive trends in external environmental factors.
negative trends in external environmental factors.
An organizations assets that are used to develop, manufacture and deliver products to its customers.
An organization's skill and abilities in doing the work activities needed in its business.
The organizations major value-creating capabilities that determine its competitive weapons.
Any activities an organization does well or any unique resources that it has.
Any activities an organization does not do well or resources it needs but does not possess.
An analysis of an organizations strengths, weaknesses, opportunities, and threats.
An organizations strategy that specifies what businesses a company is in or wants to be in and what it wants to do with those businesses.
A corporate strategy thats used when an organization wants to expand the number of makers served or products offered either through its current business or through new business.
An organizational strategy for how an organization will compete in its business.
strategic business units
The single business of an organization that are independent and formulate their own competitive strategies.
The factor that sets an organization apart its distinctive edge.
The strategies used by an organizations various functional departments to support the organizations competitive strategy.
The ability to recognize major external changes, to quickly commit resources, and to recognize when a strategic decision was a mistake.
An organization that's first to bring a product innovation to market or to use a new process innovation.