Managing Chap 8
MGMT 371
Frink
University of Mississippi
Frink
University of Mississippi
Terms
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- Power
- The ability to influence the behavior of others.
- Scapegoating
- The process of casting blame for problems or shortcomings on an innocent or only partially responsible individual, team, or department.
- Continuous improvement
- Streams of adaptive decisions made over time in an organization that result in a large number of small, incremental improvements year after year.
- Gambler's fallacy bias
- Believing that an unexpected number of similar chance events can lead to an event not seen.
- Routine decisions
- Standardized choices made in response to relatively well-defined and common problems and alternative solutions.
- Uncertainty
- The condition under which an individual does not have the necessary information to assign probabilities to the outcome of alternative solutions.
- Probability
- The percentage of times that a specific outcome would occur if an individual were to make a particular decision a large number of times.
- Goals
- What an organization is committed to achieving.
- Rational model
- A series of steps that individuals or teams should follow to increase the likelihood that their decisions will be logical and well founded.
- Subjective probability
- The likelihood that a specific outcome will occur, based on personal judgment and beliefs.
- Law of small numbers bias
- Viewing a few incidents or cases as representative of a larger population (a few cases "prove the rule") even when they aren't.
- Hierarchy of goals
- Maslow's approach to motivation suggests that people have a complex five-level set of needs, which they attempt to meet in sequence.
- Bounded rationality model
- An individual's tendency (1) to select less than the best goal or alternative solution (i.e., to satisfice), (2) to engage in a limited search for alternative solutions, and (3) to have inadequate information and control over external and internal environmental forces influencing the outcomes of decisions.
- Innovators
- Are those individuals or organizations who do one or more of the following: change customer expectations, change the bases for competition in an industry, or change the economic efficiency of an industry.
- Selective perception bias
- Seeing what a person expects to see.
- Active inertia
- The rigid devotion to the status quo by attempting to do more of the same old thing better.
- Rational decision
- Results in the maximum achievement of a goal within the limitations of the situation.
- Risk
- The condition under which individuals can define a problem, specify the probability of certain events, identify alternative solutions, and state the probability of each solution leading to the desired results.
- Innovative decisions
- Choices based on the discovery, identification, and diagnosis of unusual and ambiguous problems and the development of unique or creative alternative solutions.
- Operational goals
- What is to be achieved in quantitative terms, for whom, and within what time period.
- General goals
- Broad direction for decision making in qualitative terms.
- Convergence
- A business shift in which two connections with the customer that were previously viewed as competing (e.g., bricks-and-mortar bookstores and Internet bookstores) come to be seen as complementary.
- Decision making
- The process of defining problems, gathering information, generating alternatives, and choosing a course of action.
- Political model
- A description of the decision-making process in terms of the particular interests and goals of powerful external and internal stakeholders.
- Ignorance
- The lack of relevant information or the incorrect interpretation of the information that is available.
- Concrete information bias
- Vivid, direct experience dominating abstract information.
- Decision Making
- The process of defining problems, gathering information, generating alternatives, and choosing a course of action.
- Certainty
- The condition under which individuals are fully informed about a problem, alternative solutions are obvious, and the possible results of each solution are clear.
- Objective probability
- The likelihood that a specific outcome will occur, based on hard facts and numbers.
- Co-optation
- Bringing new stakeholder representatives into the strategic decision-making process as a means of averting threats to an organization's stability or existence.
- Availability bias
- Recall of specific instances of an event, which may overestimate how frequently the event occurs.
- Satisficing
- The practice of selecting an acceptable goal or alternative solution.