chap 6 - Chapter 6 Definitions Decision-a choice made from...

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Chapter 6 Definitions Decision -a choice made from available alternatives Decision making -the process of identifying problems and opportunities and then resolving them Programmed decisions -decisions made in response to a situation that has occurred often enough to enable decision rules to be developed and applied in the future Nonprogrammed decisions -decisions made in response to a unique situation, are poorly defined and largely unstructured and have important consequences for the organization Certainty -all the information the decision maker needs is fully available Risk -a decision has clear goals and good information is available, but the future outcomes associated with each alternative are subject to change Uncertainty -managers know which goals they wish 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 -a decision-making model based on the assumption that managers should make logical decisions that will be in the organization’s best economic interests Normative -an approach that defines how a decision maker should make decisions and provides guidelines for reaching an ideal outcome for the organization Administrative model -a decision-making model that describes how managers make decisions in situations characterized by nonprogrammed decisions, uncertainty and ambiguity
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This note was uploaded on 04/07/2008 for the course MGMT 3001 taught by Professor Someguy during the Spring '08 term at Minnesota.

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chap 6 - Chapter 6 Definitions Decision-a choice made from...

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