cheat sheet exam 2 - decision-making process- A set of...

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decision-making process - A set of eight steps that include identifying a problem, selecting an alternative, and evaluating the decision's effectiveness. decision criteria - Criteria that define what's relevant in a decision. rational decision making - Decision-making behavior where choices are consistent and value- maximizing within specified constraints. bounded rationality - Decision-making behavior that's rational, but limited (bounded) by an individual's ability to process information. Satisficing - Accepting solutions that are "good enough." escalation of commitment - An increased commitment to a previous decision despite evidence that it may have been wrong. intuitive decision making- Making decisions on the basis of experience, feelings, and accumulated judgment. structured problems- Straightforward, familiar, and easily defined problems. programmed decision - A repetitive decision that can be handled by a routine approach. Procedure - A series of interrelated sequential steps that can be used to respond to a well- structured problem. Rule - An explicit statement that tells managers what they can or cannot do. Policy - A guideline for making decisions. unstructured problems- Problems that are new or unusual and for which information is ambiguous or incomplete. nonprogrammed decisions - A unique decision that requires a custom-made solution. Certainty - A situation in which a manager can make accurate decisions because all outcomes are known. Risk - A situation in which the 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. directive style - A decision-making style characterized by low tolerance for ambiguity and a rational way of thinking. analytic style - A decision-making style characterized by a high tolerance for ambiguity and a rational way of thinking. conceptual style - A decision-making style characterized by a high tolerance for ambiguity and an intuitive way of thinking. behavioral style - A decision-making style characterized by a low tolerance for ambiguity and an intuitive way of thinking. Heuristics - Rules of thumb that managers use to simplify decision making. business performance management (BPM) software- IT software which provides key performance indicators to help managers monitor efficiency of projects and employees. strategic management - What managers do to develop the organization's strategies. Strategies - The decisions and actions that determine the long-run performance of an organization. business model - A strategic design for how a company intends to profits from its strategies, processes, and activities. strategic management process
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cheat sheet exam 2 - decision-making process- A set of...

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