Shared Flashcard Set

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NCMA Bk1-3
Book 1, Chapter 3
31
Business
Professional
06/24/2008

Additional Business Flashcards

 


 

Cards

Term

 

 

Administrative Model

Definition

Decisioin making describes how managers actually make decisions in difficult sitionations like those of non prgrammed decisions, uncertainty, and ambiguity.

 

Focuses on organizational factors that influence indivdual decisions.

 

Descriptive describes how to make decisions

 

 1. Decision goals are vague, confidentiality and lack of consensus

2. Rational procedures are not always used, when they are used they have a simple view of the problem

3. Search for alternatives is limited because of human, information, and resource constraints

4. Managers settle for staticificing

Term

 

 

Intution

Definition

 

 

Quick apprehension of decision situation based on past experience but without conscious thought

Term

 

 

Political Model

Definition

Most useful for non programmed decisions:

 

1. Organization are made of groups with diverse interests/goals

2. information is ambiguous/incomplete

3. Managers do not have time to idenify all a problem'd imensions

4. Mangers engage in the debate to discuss the alternative

Term

 

 

Effective Decision Process

Definition

 

 

1. Recognition of decision required

2. Diagnosis and analysis of cause

3. Develop alternatives

4. Select deseired alternative

5. Impliment decision

6. Evaluate and feedback

Term

 

 

 

Problem

Definition

 

 

Organizational accomplishment is less than established goals.

Term

 

 

Opportunity

Definition

 

 

When mangers see potential accomplishment that exceeds current goals.

Term

 

 

 

Diagnosis

Definition

 

 

Analyize casual factors

 

Questions:

What is the state affecting us?

When? Where? How? And to whom did it occur?

Urgency?

Interconnectedness of events?

Result came from activity?

Term

 

 

Risk propensity

Definition

 

 

Willingness to undertake risk with the opportunity for increased profit/payoff.

Term

 

 

Implimentation

Definition

 

 

 

This stage involves the use of managerial/administrative, persuasive abilities to put decisions or chosen alternatives into action.

Term

 

 

 

The three Decision Styles

Definition

 

 

1. Directive

2. Analytical

3.Conceptual

Term

 

 

Directive Style (decision making)

Definition

 

 

Used by people who prefer simple, clear cut solutions to problems, who make decision quickly because they do not like a lot of information, and may consider only one or two alternatives.

Term

 

 

 

Analytical Style (of decision making)

Definition

 

 

 

People who like to consider complex solutions based on as much data as they can gather.

 

Decisions are from objective, rational data from management control systems

Term

 

 

 

Conceptual Sytle (of decision making)

Definition

 

 

 

Likes to consider a broad amount of information; more socially oriented and like to talk to others about problems.

Term

 

 

 

Behavorial Style (of decision making)

Definition

 

 

 

Done by managers that have a deep concern for others.

 

Talk to people one on one to understand their feelings.

Term

 

 

 

Vroom Jago Model

Definition

Model to help managers guage the amount of subordinate participation in decision making.

 

Spectrum ranges from Total Influenced by leader to freedom by group

 

Leaders Decides, Consult individula, Consult group, facilitate (a grp meeting), Delegate.

Term

 

 

 

To decide which decision style to use...ask these questions

Definition

 

 

- Decision significance

- Importance of commitment

- Leader Expertise

-Likelihood of commitment

-Group support for Goals

-Group Expertise

- Team competence

Term

 

 

Escalating Commitment

Definition

 

 

 

Manager block/ distort negative info becasue they dont want to be responsible four a bad decision.

 

So they continue to invest time and resources in a failing decision.

Term

 

 

 

Five whys

Definition

 

 

 

The 5 whys are improve how people think about the problems and generate alternatives for solving them.

 

Ask "why" 5 times

Term

 

 


Devils advocate

Definition

 

 

 

Person with the role of cahallenging assumptions and assertions made by the group.

Term

 

 

 

Point- counter Point

Definition

 

 

 

Break room into groups, people are assigned to express competing points of view.

Term

 

 

Decision making

Definition

 

 

 

Process of identifying problems and opportunities and then resolving them.

Term

 

 

 

Decision

Definition

 

 

 

A choice made from available alternatives.

Term

 

 

Programmed decisions

Definition

 

 

 

Involve situations that have occurred often enough to engage decisions rules that are developed and applied in the future in response to reoccuring organizational problems

Term

 

 

 

Non programmed Decisions

Definition

 

 

 

Decisions that are made in response to situations that are unique, are poorly defined, and are largly unstructure, and have important consequences.

 

Difference between programmed and non programmed decisions --> degree or certainty or uncertainty

Term

 

 

 

Certainity

Definition

 

 

 

All the information the decision maker needs is fully available.

 

Information on: Operating conditions, resource costs/ constraints to each possible outcome/ each course of action

Term

 

 

 

Risk

Definition

 

 

Decision has clear cut goasl and that good information is available but the future outcomes associated with each alternative are subject to change

 

Ex. Saturn's mid sized car to compete with Accord and Camry.

Term

 

 

 

Uncertainity

Definition

 

 

Managers know which goals they wish to achieve but information about alternatives and future events is incomplete.

 

The following are difficult to analyize/predict: price, production cost, volume, and future interest rate

Term

 

 

Ambiguity

Definition

 

 

 

Most difficult decision situation. Goals/problem to be solved are unclear. Alternatives are difficult to define and information about outcomes is unavailable.

Term

 

 

Classical Model

Definition

 

 

The decision making is based on economic assumptions.

 

- decision maker operates to accomplish goals that are known and agreed upon

- decision maker strives for certainty

- criteria to evaluate the alternatives are known

 

Classic model is normative (how decisions should be made).

Term

 

 

 

Bounded Rationality

Definition

 

 

 Means that people have limits or boundaries on how rational they can be.

Term

 

 

Satisficing

Definition

 

 

 

Decision makers must choose the 1st solution alternative that satisfies minimal decision criteria

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