Term
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Definition
1. Decision Making Process
2. Concept of Bounded Rationality
3. Concept of Strategic Gap
4. Strategic Decision Making Process
5. Trull's Evaluation of Decision Success
6. Strategic Decision Matrix |
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Term
| 6 Steps of Decision Making Process |
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Definition
1. setting the objective
2. generating alternatives
3. comparing and evaluating
4. making the decision
5. implementing the decision
6. follow up and control |
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Term
| 6 limitation of the concept of bounded rationality |
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Definition
1. environmental limitations
2. cognitive limitations
3. imperfect information
4. time and cost constraints
5. communication failures
6. precedent and perception |
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Term
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Definition
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Term
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Definition
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Term
| characteristics of environment |
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Definition
opportunities
threats
requirements
responsibilities |
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Term
| characteristics of organization |
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Definition
management
technology
policies
resources |
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Term
| 4 considerations from steps 1-4 (trull's) |
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Definition
compatibility with operating constraints
timeliness
optimum amount of information
influence of decision maker |
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Term
| 3 considerations from step 5 (trull's) |
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Definition
conflict of interest
risk-reward factor
understanding the decision |
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Term
| strategic decision matrix |
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Definition
satisficing outcome
maximizing outcome
attainable objectives/open DM process
unattainable objective/closed DM process |
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Term
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Definition
| simplifying strategies or rules of thumb used by individuals when making decisions. |
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Term
| the 4 general heuristics are: |
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Definition
availability heuristic
representativeness heuristic
confirmation heuristic
affect heuristic |
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Term
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Definition
| people asses the frequency, probability or likely causes of an event by the degree to which instances or occurrences of that event are readily available in memory |
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Term
| representativeness heuristic |
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Definition
| when making a judgment about an individual, people tend to look for traits an individual may have that correspond with previously formed stereotypes |
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Term
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Definition
| people search for and interpret evidence in a way that supports conclusion they favored at the outset |
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Term
| biases emanating from availability heuristic |
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Definition
ease of recall
retrievability |
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Term
| biases emanating from representativeness heuristic |
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Definition
insensitivity to base rates
insensitivity to sample size
misconception of chance
regression to the mean
the conjunction fallacy |
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Term
| biases emanating from the confirmation heuristic |
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Definition
the confirmation trap
anchoring
conjunctive and disjunctive events
overconfidence
hindsight and the curse of knowledge |
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Term
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Definition
| most of our judgements are evoked by an effective, or emotional, evaluation that occurs even before any higher level reasoning takes place. These evaluations are not conscious |
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Term
| framing of information (affect heuristic) |
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Definition
| alternative wording of the same objective information that significantly alter the decision that people make despite the fact that differences between frames should have no effect on the rational decision |
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