Term
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Definition
| the process by which members of an organization choose a specific course of action to respond to both opportunities and problems |
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Term
| Nonprogrammed Decision Making |
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Definition
| decision making in response to novel opportunities and problems |
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Term
| Programmed Decision Making |
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Definition
| decision making in response to recurring opportunities and problems |
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Term
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Definition
| a standard sequence of behaviors that organizational members follow routinely whenever they encounter a particular type of problem or opportunity |
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Term
| Classical Decision-Making Model |
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Definition
| a prescriptive approach based on the assumption that the decision maker has all the necessary information and will choose the best possible solution or response |
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Term
| Steps to the Classical Model |
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Definition
1. List alternatives
2. List consequences of each alternative
3. Rank alternatives from most to least preferred
4. Select alternative that will result in the most preferred set of consequences |
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Term
| Administrative Decision-Making Model |
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Definition
| based on the assumption that there will not be full information and acknowledge that psychological and sociological processes often cause people to make suboptimal decisions |
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Term
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Definition
| searching for and choosing an acceptable response or solution, not necessarily the best possible one |
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Term
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Definition
| an ability to reason that is constrained by the limitations of the human mind itself |
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Term
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Definition
| rules of thumb that simplify decision making |
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Term
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Definition
| the rule of thumb that says an event that is easy to remember is likely to have occurred more frequently than an event that is difficult to remember |
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Term
| Representativeness Heuristic |
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Definition
| the rule of thumb that says similar kinds of events that happened in the past are a good predictor of the likelihood of an upcoming event |
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Term
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Definition
| the actual frequency with which an event occurs |
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Term
| Anchoring and Adjustment Heuristic |
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Definition
| the rule of thumb that says that decisions about how big or small an amount (such as a salary, budget, or level of costs) should be can be made by making adjustments from some initial amount |
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Term
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Definition
| the tendency to invest additional time, money, or effort into what are essentially bad decisions or unproductive courses of action |
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Term
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Definition
| costs that cannot be reversed and will not be affected by subsequent decision making |
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Term
| Sources of Errors in Decision-Making |
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Definition
| Heuristics Escalation of Commitment |
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Term
| Conditions under which Decisions are Made |
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Definition
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Term
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Definition
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Term
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Definition
| outcomes can be stated in terms of a probability |
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Term
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Definition
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Term
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Definition
| probabilities based on hard facts and statistics |
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Term
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Definition
| probabilities based on personal judgments and beliefs |
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Term
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Definition
| Diversity of skills, knowledge, and expertise Increased memory for facts Increased error detection Increased acceptance of decision |
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Term
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Definition
| Inadequate time Potential for groupthink |
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Term
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Definition
| where poor decisions are made because of desire to reach consensus quickly as opposed to accurately |
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Term
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Definition
| a spontaneous, participative decision-making technique that groups use to generate a wide range of alternatives from which to make a decision |
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