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Management Leading & Collaborating in the Competitive World
Key terms Chapter 3
27
Business
Graduate
01/11/2010

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Term
programmed decisions
Definition
Decisions encountered and made before, having objectively correct answers, and solvable by using simple rules, polices, or numerical computations.
Term
non-programmed decisions
Definition
New, novel, complex decisions having no proven answers.
Term
certainty
Definition
The state that exists when decision makers have accurate and comprehensive information.
Term
uncertainty
Definition
The state that exists when decision makers have insufficient information.
Term
risk
Definition
The state that exists when the probability of success is less than 100 percent and losses may occur.
Term
conflict
Definition
Opposing pressures from different sources, occurring on the level of psychological conflict or of conflict between individuals or groups.
Term
ready-made solutions
Definition
ideas that have been seen or tried before.
Term
custom-made solutions
Definition
New, creative solutions designed specifically for the problem.
Term
contingency plans
Definition
Alternative courses of action that can be implemented based on how the future unfolds.
Term
maximizing
Definition
A decision realizing the best possible outcome.
Term
satisficing
Definition
Choosing an option that is acceptable, although not necessarily the best or perfect.
Term
optimizing
Definition
Achieving the best possible balance among several goals.
Term
vigilance
Definition
A process in which a decision maker carefully executes all stages of decision making.
Term
illusion of control
Definition
People's belief that they can influence events, even when they have no control over what will happen.
Term
framing effects
Definition
A decision bais influenced by the way in which a problem or decision alternative is phrased or presented.
Term
discounting the future
Definition
A bias weighting short-term cost and benefits more heavily then long-term cost or benefits.
Term
groupthink
Definition
A phenomenon that occurs in decision making when group members avoid disagreement as they strive for consensus.
Term
goal displacement
Definition
A condition that occurs when a decision-making group loses sight of its original goal and a new, less important goal emerges.
Term
cognitive conflict
Definition
issue-based differences in perspectives or judgements.
Term
affective conflict
Definition
Emotional disagreement directed towards other people.
Term
devil's advocate
Definition
A person who has the job of criticizing ideas to ensure that their downsides are fully explored.
Term
dialectic
Definition
A structured debate comparing two conflicting courses of action.
Term
brainstorming
Definition
A process in which group members generate as many ideas about a problem as they can; criticism is withheld until all ideas have been proposed.
Term
bounded rationality
Definition
A less-than-perfect form of rationality which decision makers cannot be perfectly rational because decisions are complex and complete information is unavailable or cannot be fully processed.
Term
incremental model
Definition
Model of organizational decision making in which major solutions arise through a series of smaller decisions.
Term
coalitional model
Definition
Model of organizational decision making in which groups with differing preferences use power and negotiation to influence decisions.
Term
garbage can model
Definition
Model of organization decision making depicting a chaotic process and seemingly random decisions.
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