mgt ch 9 mdtrm 2
Terms
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- delphi group
- a form of group decision making in which a group is used to ac hieve a consensus of expert opinion
- bounded rationality
- a concept suggesting that decision makers are limited by their values and unconscious reflexes, skills, and habits
- decision making
- the act of choosing one alternative from among a set of alternatives
- decision making process
- recognizing and defining the nature of a decision situation, identifying alternaitves, choosing the "best" alternative and putting it into practice.
- programmed decision
- a decision that is fairly structured or recurs with some frequency (or both)
- nonprogrammed decision
- a decision that is relatively unstructured and occurs much less often than a programmed decision
- state of certainty
- a condition in which the decision maker knows with reasonable certainty what the alternative are and what conditions are associated with each alternative
- state of risk
- a condition in which the availablity of each alternative and its potential payoffs and costs are all associated with probability estimates
- state of uncertainty
- a condition in which the decision maker does not know all the alternatives, the risks associated with each, or the consequences each alternative is likely to have.
- classical decision model
- a prescriptive approach to decision making that tells managers how they should make decisions; assume that managers are logical and rational and that their decisions willbe in the best interests of the organization.
- steps in rational decision making
- recognize and define the decision situation; identify appropriate alternatives; evaluate each alternaitive in terms of its feasibility, satisfactoriness, and consequences; select the best alternative; implement the chosen alternative; follow up and evaluate the results of the chosen alternative.
- administrative model
- a decision making model that argues that decision makers 1 use incomplete and imperfect information 2 are constrained by bounded rationality and 3 trend to "satisfice" when making decisions
- satisficing
- the trendency to search for alternatives only until one is found that meets some minimum standard of sufficiency
- coalition
- an informal alliance of individuals or groups formed to achieve a common goal
- intuition
- an innate belief about something without conscious consideration
- escalation of commitment
- a decision maker's staying with a decision even when it appears to be wrong
- risk propensity
- the extent to which a decision maker is willing to gamble when making a decision
- interacting group or team
- a decision making group or team in which members openly discuss argue about and agree on the best alternatives
- nominal group
- a structured technique used to generate creative and innovative alternatives or ideas.
- group think
- a situation that occurs when a group or teams desire for consensus and cohesiveness overwhelms its desire to reach the best possible decision