Question | Answer |
Decision-making process | A set of eight steps that includes identifying a problem, selecting a solution, and evaluating the effectiveness of the solution |
Problem | A discrepancy between an existing and a desired state of affairs |
Decision criteria | Factors that are relevant in a decision |
Decision implementation | Putting a decision into action |
Heuristics | Judmental shortcuts or "rules of thumb" used to simplify decision making |
Rational decision making | Describes choices that are consistent and value-maximizing within specified constraints |
Bounded rationality | Making decisions that are rational within the limits of a manager's ability to process information |
Satisfice | Accepting solutions that are "good enough" |
Escalation of commitment | An increased commitment to a previous decision despite evidence that it may have been a poor decision |
Intuitive decision making | Making decisions on the basis of experience, feelings, and accumulated judgment |
Structured problem | A straightforward, familiar, and easily defined problem |
Unstructured problem | A problem that is new or unusual for which information is ambiguous or incomplete |
Programmed decision | A repetitive decision that can be handled using a routine approach |
Procedure | A series of interrelated, sequenfial steps used to respond to a structured problem |
Rule | An ecplicit statement that tells employees what can or cannot be done |
Policy | A guideline for making decisions |
Nonprogrammed decision | A unique and nonrecurring decision that requires a custom-made solution |
Certainty | A situation in which a decision maker can make accurate decisions because all outcomes are known |
Risk | A situation in which a decision maker is able to estimate the likelihood of certain outcomes |
Uncertainty | A situation in which a desicion maker has neither certainty nor reasonable probability estimates available |
Groupthink | When a group exerts extensive pressure on an individual to withhold his or her different views in irder to appear to be in agreement |
Brainstorming | A idea-generating process that encourages alternatives while withholding critism |
Nominal group technique | A decision-making technique in which group members are physically present but operate independently |
Electronice meeting | A type of nominal group technique in which participants are linked by computer |
Ringisei | Japanese consensus-forming group decisions |
Creativity | The ability to produce novel and useful ideas |