Flashcards
Management Ch 7
Cards in this deck (16)
- 1Decisiona choice make from among available alternatives
- 2Decision Makingthe process of identifying and choosing alternative course of action
- 3Rational Decision Makinghow the managers should make decisions; it assumes managers will make logical decisions that will be optimum in furthering the organization's best interests
- 4Four Steps in Rational Decision MakingStage 1: Identify the problem or opportunity
Stage 2: Think up Alternative Solutions
Stage 3: Evaluate Alternatives & Select a Solution
Stage 4: Implement & Evaluate the Solution - 5Intuitionmaking a choice without the use of conscious thought or logical inference
- 6Non-rational Models of Decision Makingexplain how managers make decisions; they assume that decision making is nearly always uncertain and risky; making it difficult for managers to make optimal decisions
- 7Bounded Rationalitythe ability of decision makers to be rational is limited by numerous constraints
- 8Satisficingmanagers seek alternatives until they find one that is satisfactory, not optimal
- 9Decision Treea graph of decisions and their possible consequences; it is used to create a plan to reach a goal
- 10Analyticsthe term use for sophisticated forms of business data analysis
- 11Decision-Making Stylereflects the combo of how an individual perceives and responds to info
- 129 Common Decision-Making Biasis1) The Availability Bias
2) The Representativeness Bias
3) The Confirmation Bias
4) The Sunk-Cost Bias
5) The Anchoring & Adjustment Bias
6) The Overconfidence Bias
7) The Hindsight Bias
8) The Framing Bias
9) The Escalation of Commitment Bias - 13Advantages of Decision-Making- greater pool of knowledge
- different perspectives
- intellectual stimulation
-better understanding of decision rationale
- deeper commitment to the decision - 14Disadvantages of Decision-Making- a few people dominate or intimidate
- groupthink - 15Groupthinkoccurs when group members strive to agree for the sake of unanimity and thus avoid accurately assessing the decision situation
- 16Brainstorminga technique used t help groups generate multiple ideas and alternatives for solving problems
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- Flashcards on Management Ch 7, created by Tanner Gibbs on 17/12/2017.
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- Tanner Gibbs
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