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Unformatted text preview: MODULE THREE TERMS Chapter 10: Decision Making in Orgs. Decision making : the process of making choices from among several alternatives Analytical model of the decision-making process : a conceptualization of the eight steps through which individuals and groups make decisions: indentify the problem, define objectives, make a predecision, generate alternatives, evaluate alternatives, make a choice, and implement choice. Predecision : a decision about what process to follow in making a decision. Decision support systems (DSS ): computer programs in which information about organizational behavior is presented to decision makers in a manner that helps them structure their responses to decisions. Decision stream : an interconnected set of decisions. Programmed decisions : highly routine decisions made accordingly to preestablished organizational routines and procedures. Nonprogrammed decisions : decisions made about a highly novel problem for which there is no prespecified course of action Strategic decisions : nonprogrammed decisions typically made by high-level executives regarding the direction their organization should take to achieve its mission. Top-down decision making : the practice of vesting decision making power in the hands of superiors as opposed to lower-level employees Empowered decision making : the practice of vesting power for making decisions in the hands of employees themselves Decision style : differences between people with respect to their orientations toward decisions Decision style model : the conceptualization according to which people use one of four predominant decision styles: directive, analytical, conceptual, or behavioral Groupthink : the tendency for members of highly cohesive groups to so strongly conform to group pressures regarding a certain decision that they fail to think critically, rejecting the potentially correcting influences of outsiders. Rational decisions : decisions that maximize the chance of attaining an individuals groups or organizations goals. Rational-economic model : the model of decision making according to which decision makers consider all possible alternatives to problems before selecting the optimal solution. Administrative model : a model of decision making that recognizes that people have imperfect views of problems, which limits the making of optimally rational-economic decisions. Satisficing decisions : decisions made by selecting the first minimally acceptable alternative as it becomes available Bounded rationality : the major assumption of the administrative model- that organizational, social, and human limitations lead to the making of satisfying rather than optimal decisions Bounded discretion : the tendency to restrict decision alternatives to those that fall within prevailing ethical standards I mage theory : a theory of decision making that recognizes that decisions are made in an automatic, intuitive fashion. According to the theory, people will adopt a course of action that best fits their individual principles, current goals, and plans for the future.that best fits their individual principles, current goals, and plans for the future....
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- Spring '09