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Terms in this set (15)
are relatively structured or recur with some frequency (or both) Starbucks uses programmed decisions to purchase new supplies of coffee beans, cups, and napkins, and its employees are trained in exact procedures for brewing coffee.
on the other hand, are relatively unstructured and occur much less often than programmed decisions. Disney's decision to buy Lucasfilm was a nonprogrammed decision. Managers faced with such decisions must treat each one as unique, investing enormous amounts of time, energy, and resources into exploring the situation from all perspectives.
state of certainty
When the decision maker knows with reasonable certainty what the alternatives are and what conditions are associated with each alternative, a.... exists
state of risk
the availability of each alternative and its potential payoffs and costs are all associated with probability estimates
state of uncertainty
Most of the major decision making in contemporary organizations is done under a..... where the decision maker does not know all the alternatives, the risks associated with each, or the likely consequences of each alternative.
steps in rational decision making and now called administrative model
A manager who really wants to approach a decision rationally and logically should try to follow the....the model holds that decision makers (1) use incomplete and imperfect information,(2) are constrained by bounded rationality, and (3) tend to "satisfice" when making decisions
suggests that decision makers are limited by their values and unconscious reflexes, skills, and habits. They are also limited by less-than-complete information and knowledge. partially explains how U.S. auto executives allowed Japanese automakers to get such a strong foothold in the U.S. domestic market several decades ago.
Another important part of the administrative model is... which suggests that rather than conducting an exhaustive search for the best possible alternative, decision makers tend to search only until they identify an alternative that meets some minimum standard of sufficiency.
is an innate belief about something without conscious consideration. Managers sometimes decide to do something because it "feels right" or they have a "hunch."
escalation of commitment
a decision maker sticks with their decision even after all of the evidence show that its wrong .
is sometimes used to arrive at a consensus of expert opinion. The Delphi procedure solicits input from a panel of experts who contribute individually.
Another useful group and team decision-making technique that is occasionally used is the.......
Delphi method vs nominal group
Unlike the Delphi method, in which group members do not see one another, nominal group members are brought together in a face-to-face setting. The members represent a group in name only, however; they do not talk to one another freely like the members of interacting groups.
Finally, a group or team may succumb to a phenomenon known as.....which occurs when the desire for consensus and cohesiveness overwhelms the goal of reaching the best possible decision
Rational decision marking
1. Recognize decision situation, 2. Identify all alternatives, 3. Evaluate my alternatives, 4. Selective alternatives, 5. Implement alternatives, and 6. Follow up your alternative
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