Chapter 5 Decision Making Definitions

Chapter 5 Decision Making Definitions - Decision making...

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Chapter 5 – Decision making Definitions Decision making A process by which managers analyze the options facing them and make decisions about specific organizational goals and courses of action Programmed decision making Routine virtually automatic decisions making that follows established riles or guidelines. Non-programmed decision making Non-routine decision making that occurs in response to unusual and unpredictable opportunities and threats. Rational decision making model A prescriptive approach to decision making based on the idea that the decision maker can identify and evaluate all the possible alternatives and their consequences and rationally chose the most suitable course of action. Administrative model An approach to decision making that explains why decision making is basically uncertain and risky and why managers usually make satisficing rather then optimum decisions. Bounded rationality Cognitive limitations that constrain one’s ability to interpret, process and act on information. Satisficing
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This note was uploaded on 01/07/2010 for the course TELFER ADM1300 taught by Professor Peterkoppel during the Fall '09 term at University of Ottawa.

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