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Kari Bareham

Chapter 3 - Management

QuestionAnswer
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 on existing and a desired state of affairs.
Decision Criteria Factors that are relevant in a decision.
Decision Implementation Putting a decision into action.
Heuristics Judgmental 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 judgement.
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, sequential steps used to respond to a structured problem.
Rule An explicit 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 decision 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 order to appear to be in an agreement.
Brainstorming An idea-generating process that encourages alternatives while withholding criticism.
Nominal Group Technique A decision-making technique in which group members are physically present but operate independently.
Electronic Meeting A type of nominal group technique in which participants are linked by a computer.
Ringisei Japanese consensus - forming group decisions.
Creativity The ability to produce novel and useful ideas.
Created by: VeryBerryKari
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