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Textbook Notes - Chapter 9 Decision is a choice made from...

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Chapter 9 Decision is a choice made from available alternatives. Decision making is the process of identifying problems and opportunities and the resoling them Decision making involves effort both before and after the actual choice. Types of decisions o Programmed – involve situations that have occurred often enough to enable decision rules to be developed and applied in the future o Nonprogrammed – made in response to situations that are unique and have some important consequences for the organization. Certainty – all the information the decision maker needs is fully available Risk – a decision has a clear-cut goals that good information is available, but the future outcomes associated with each alternative are subject to chance. Uncertainty – managers know which goals they with to achieve, but information about alternatives and future events is incomplete. Ambiguity – the goals to be achieved or the problem to be solved is unclear, alternatives are difficult to define, and information about outcomes is unavailable. Classical model, the ideal, rational approach to decision making is based on the assumption that managers should make logical decisions that are economically sensible and in the organization’s best economic interests. Normative – defines how a manager should make logical decisions and provides guidelines for reaching an ideal outcome. Administrative mode – includes the concepts of bounded rationality and satisficing and describes how managers make decisions in situations that characterized by uncertainty and ambiguity Descriptive – describes how managers actually make decisions rather than how they should make decisions according to a theoretical model. Bounded rationality – people have the time and cognitive ability to process only a limited amount of information on which to base decisions. Satisficing – choice the first alternative that satisfies minimal decision criteria, regardless of whether better solutions are presumed to exist. Intuition – aspect of administrative decision making that refers to a quick comprehension of a decision situation based on past experience without conscious though. Coalition – an informal alliance among managers who support a specific goal of solution. Chapter 1 Management is defined as the attainment of organizational goals in an effective and efficient manner through panning, organizing, leading, and controlling organizational resources. Planning – defining goals for future performance and how to attain them Organizing – assigning tasks, grouping tasks into department, and allocating resources. Leading – using influence to motivate employees to achieve the organization’s goals. Controlling – monitoring employees activities to keep the organization on track toward
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This note was uploaded on 12/13/2011 for the course MGMT 371 taught by Professor Mackenzie during the Spring '09 term at South Carolina.

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Textbook Notes - Chapter 9 Decision is a choice made from...

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