Management Test Two Study Guide

Management Test Two Study Guide - Management Test Two Study...

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Management Test Two Study Guide Class Notes Decision Making Continued - Decision Making is a process by which people respond to opportunities and threats by doing three things: 1. Choosing Goals 2. Analyzing Options 3. Selecting courses of action - There are two basic types of decision making: 1. Programmed a. Routine, virtually automatic decisions making that follows establishes rules and regulations. An employee of Wal-Mart visits her local carwash, McDonalds etc….and sees that they all have an employee of the month. She believes that bc it works for those companies that it will work for her at Wal-Mart. She was wrong in that decision. Programmed decisions making is similar to letting a computer program make your decision for you; your mind and heart have been turned off. 2. Non-Programmed a. Non-routine decisions that occurs in response to unusual, unpredictable, and unique opportunities and threats, when there are no rules to follow, when we have uncertain or ambiguous (looking at data and 2 different people see two different things) information, and when we use intuition, judgment, and discernment. - Classic Model of Decision Making We can engage in the classical model of decision making, which is where we identify and evaluate all possible alternatives and their consequences. At this point we will rationally and logically choose the best course of action. Many things cannot fit this model. - Administrative model of decision making (More Useful): Disagrees w the classical model. The admin model says that our ability to be rational has limits and boundaries. This model says you will never have all the info and will never know all the consequences, implications, and outcomes. The info you have is probably ambiguous info, which means the info you have means something different to different people. We are limited as people and we have incomplete information.
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- Bounded Rationality Bounded Rationality is the idea that we have limits/boundaries on how much info we can process, the amt of time we can devote to analysis; we acquire info that is not perfect Satisfies: we search for acceptable or satisfactory or the first good enough alternative. (Example: Picking a place to eat on a daily basis). - Working in Groups One of the best tools to make a good decision is to work in a group Working in a group can eliminate your human flaws One Danger of working in a group is groupthink Group Think: a biased way of decision making when the group is striving for a unified decisions; blind commitment to a single course of action. This is worse than performing the task on your own. 4 Conditions of when group think is likely to occur: 1. If there is a lot of emotion in the group 2. If there is a lot of pressure for agreement 3. If there is a culture that is intolerant of diversity or differences or innovativing thinking 4. If there is one powerful person What is the best way to bust through groupthink: Get people in the group who are different, are independent, and non-traditional
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This note was uploaded on 01/26/2011 for the course MGT 301 taught by Professor Holbein during the Fall '08 term at Kentucky.

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Management Test Two Study Guide - Management Test Two Study...

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