Chapter 11 - I Decision Making and Creativity Decision...

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Decision Making and Creativity I. Decision making : entails identifying and choosing from among alternate solutions that lead to a desired state of affairs (changes varies from rational to nonrational) A. Rational model of decision making : explains how managers should make decisions 1. Optimizing : solving problems by producing best possible solution based on set of highly desirable conditions 2. Benefits: a) Quality, transparency, responsibility B. 4 steps in making rational decisions 1. Identify problem a) Opportunity : situation in which results that exceed goals and expectations are possible b) When problems or opportunities arise, the goal is the same: make improvements that change conditions from their current state to more desirable one 2. Generate alternative solutions a) Brainstorming : used for both individuals and groups to generate potential solutions; managers struggled with it bc: (1) Rushing to judgement (2) Selecting readily available ideas or solutions (3) Making poor allocation of resources to study alternate solutions 3. Evaluate alternatives and select solutions a) Evaluate on a criteria including costs and quality: (1) Is it ethical? (2) Is it feasible? (3) Will it remove causes and solve the problem? 4. Implement and evaluate solution C. 2 systems of thinking 1. System1 - intuitive and largely unconscious thought 2. System2 - analytical and conscious thought D. Nonrational models of decision making : how managers actually make decisions 1. Typically build on assumptions that decision making is uncertain 2. Simon’s Normative Mode l: “satisfactory is good enough” a) Bounded rationality : represents notion that decision makers are bounded by variety of constraints when making decisions (1) Caused by lack of info, personal characteristics, external/internal resources (2) Satisficing : choosing solution that meets min qualifications; “good enough” 3. Intuition model : “it just feels right” a) Intuition
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