Decision Making Organizing

Decision Making Organizing - Decision Making Organizing...

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Decision Making Organizing “Rational” Decision Making Rational o Describes choices that are consistent and value-maximizing Expected value Elimination by aspects Bounded rationality o Behavior that is rational within the parameters of a simplified or constrained model that captured the essential feature of a problem. Satisficing Garbage Can Model Biases and Heuristics: Heuristics: Using judgmental shortcuts o Availability heuristic The tendency for people to base their judgments on information that is readily available to them. o Representativeness heuristic The tendency for people to base judgments of probability on things with which they are familiar. o Escalation of commitment An increased commitment to a previous decision despite negative information. Decision Making Under Risk Uncertainty o A condition under which there may be full knowledge of what variables will influence outcomes, but the expected probability of their values cannot be
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This document was uploaded on 11/02/2011 for the course MGT 3304 at Virginia Tech.

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Decision Making Organizing - Decision Making Organizing...

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