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Chapter 7
Vocab and Objectives Text: Management 11th edition author: Kreitner
21
Business
Undergraduate 1
02/28/2011

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Term
Decision Making
Definition
identifying and choosing among alternative courses of action
Term
law of unintended consequences
Definition
results of purposeful actions are often difficult to predict
Term
condition of certainty
Definition
solid factual basis allows accurate prediction of decision’s outcome
Term
condition of risk
Definition
decision made on basis of incomplete but reliable information
Term
objective probabilities
Definition
odds derived mathematically from reliable data
Term
subjective probabilities
Definition
odds based on judgment
Term
condition of uncertainty
Definition
no reliable factual information available
Term
framing error
Definition
how information is presented influences one’s interpretation of it
Term
escalation of commitment
Definition
people get locked into losing courses of action to avoid the embarrassment of quitting or admitting error
Term
programmed decisions
Definition
repetitive and routine decisions
Term
nonprogrammed decisions
Definition
decisions made in complex and nonroutine situations
Term
knowledge management
Definition
developing a system to improve the creation and sharing of knowledge critical for decision making
Term
tacit knowledge
Definition
personal, intuitive, and undocumented information
Term
explicit knowledge
Definition
documented and sharable information
Term
collaborative computing
Definition
teaming up to make decisions via a computer network programmed with groupware
Term
creativity
Definition
the reorganization of experience into new configurations
Term
problem
Definition
the difference between an actual and a desired state of affairs
Term
causes
Definition
variables responsible for the difference between actual and desired conditions
Term
satisfice
Definition
to settle for a solution that is good enough
Term
optimize
Definition
to systematically identify the solution with the best combination of benefits
Term
idealize
Definition
to change the nature of the situation in which a problem has arisen
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