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Chapter 4
Exploring Management: 2nd Edition
45
Management
Undergraduate 3
01/31/2012

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Term
Problem Solving
Definition
involves identifying and taking action to resolve problems.
Term
Information Competency
Definition
The ability to gather and use information to solve problems
Term
Performance Threat
Definition
a situation where something is wrong or likely to be wrong.
Term
Performance Opportunity
Definition
a situation that offers the possibility of a better future if the right steps are taken
Term
Problem Avoiders
Definition
Ignore information that would otherwise signal the presence of a performance threat or opportunity.
Term
Problem Seekers
Definition
Always looking for problems to solve or opportunities to explore.
Term
Problem Solvers
Definition
Make decisions to try to solve a problem if required.
Term
Systematic Thinking
Definition
approaches problems in a rational and analytical fashion.
Term
Intuitive Thinking
Definition
Approaches problems in a flexible and spontaneous fashion.
Term
Cognitive Styles in Decision Making
Definition
1. Sensation Thinkers
2. Intuitive Thinkers
3. Sensation Feelers
4. Intuitive Feelers
Term
Sensation Thinkers
Definition
Tend to emphasize impersonal rather than the personal and take a realistic approach to problem solving. They like hard facts, clear goals, certainty, and situations of high control.
Term
Intuitive Feelers
Definition
Prefer broad and global issues. They are insightful and tend to avoid details, being comfortable with intangibles. They value flexibility and human relationships.
Term
Sensation Feelers
Definition
Tend to emphasize both analysis and human relations. Tend to be realistic and prefer facts. They are open communicators and sensitive to feelings and values.
Term
Intuitive Thinkers
Definition
Comfortable with abstraction and unstructured situations. Tend to be idealistic, prone toward intellectual and theoretical positions. They are logical and impersonal but also avoid details.
Term
Decision-making Enviroments
Definition
1. Certain Environment
2. Risk Environment
3. Uncertain Environment
Term
Certain Environment
Definition
offers complete information on possible action alternatives and their consequences.
Term
Risk Environment
Definition
lacks complete information but offers probabilities of the likely outcomes for possible action alternatives.
Term
Uncertain Environment
Definition
lacks so much information that it is difficult to assign probabilities to the likely outcomes of alternatives.
Term
Decision
Definition
a choice among possible alternative courses of action.
Term
Programmed Decision
Definition
applies a situation from past experience to a routine problem.
Term
Non-Programmed Decision
Definition
Applies a specific solution that has be crafted to address a unique problem.
Term
Types of Decisions
Definition
1. Programmed Decision
2. Non-Programmed Decision
Term
Decision Making
Definition
a process which begins with identification of a problem and ends with evaluation of implemented solutions.
Term
Steps in the Decision Making Process
Definition
1. Find and Define the problem
2. Generate and evaluate alternative solutions
3. Make decision and conduct ethics double-check.
4. Implement decision
5. Evaluate Results.
Term
Cost-Benefit Analysis
Definition
Involves comparing the costs and benefits of each potential course of action.
Term
Classical Decision Model
Definition
describes decision making with complete information
Term
Optimizing Decision
Definition
Chooses the alternative giving the absolute best solution to a problem
Term
Cognitive Limitations
Definition
limits to our information-processing capabilities.
Term
Behavioral Decision Model
Definition
Describes decision making with limited information and bounded rationality.
Term
Satisficing Decision
Definition
Chooses the first satisfactory alternative that presents itself. (Usually seen in behavioral decision models)
Term
Lack-of-Participation Error
Definition
failure to include the right people in the decision making process.
Term
Ethical Reasoning Questions Based on the Four Ethical Criteria?
Definition
1. Utility - Does the decision satisfy all constituents or stakeholders?
2. Rights - Does the decision respect the rights and duties of everyone?
3. Justice - Is the decision consistent with the canons of justice?
4. Caring - Is the decision consistent with my responsibilities to care?
Term
Creativity
Definition
The generation of a novel idea or a unique approach that solves a problem or crafts an opportunity.
Term
3 Personal Creativity Drivers
Definition
1. Task Expertise
2. Task Motivation
3. Creative Skills
Term
Right Brain Thinking
Definition
Imagination, intuition, spontaneity, and emotion.
Term
Left Brain Thinking
Definition
Logic, order, method, and analysis.
Term
3 Situational Creativity Drivers
Definition
1. Group Creativity Skills
2. Management Support
3. Organizational Culture
Term
Availability Heuristic
Definition
Uses readily available information to assess a current situation. (may be fallible or irrelevant)
Term
Representative Heuristic
Definition
Assesses the likelihood of an occurrence using a stereotype set of similar events.
(example: hiring an employee that is from the same year and school as your last good employee)
Term
Anchoring and Adjustment Heuristic
Definition
Adjusts a previously existing value or starting point to make a decision.
(example: a manager giving an employee a raise based on the starting salary rather than the employee's market worth.)
Term
Framing Error
Definition
solving a problem in the context perceived.
Term
Judgmental Heuristics
Definition
1. Availability Heuristic
2. Representative Heuristic
3. Anchoring and Adjustment Heuristic
Term
Confirmation Error
Definition
When we attend only to information that confirms a decision already made.
(Rationalizing any type of decision; usually an unethical one)
Term
Escalating Commitment
Definition
the continuation of a course of action even though it is not working. pg.88
Term
Crisis
Definition
an unexpected problem that can lead to disaster if not resolved quickly and appropriately.
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