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e02
decision making
56
Other
Post-Graduate
03/14/2011

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Term
Non Programmed Decisions-
Definition
A new complex decision that requires a creative
solution. The decision is unique and unstructured and requires considerable
judgment
Term
Programmed Decisions
Definition
A simple routine matter for which a manager has an
established decision rule. The manager performs the decision activity on a
daily basis
Term
Intuition
Definition
is a major part of input for nonprogrammed decisions knowing without knowing
Term
Identification of the real problem is important-
Definition
otherwise the manager may be
reacting to symptoms.
Term
STEP 1-
Definition
DEFINE THE PROBLEM
Term
Optimizing
Definition
Selecting the “best” alternative
Term
Satisficing
Definition
Selecting the alternative that minimally meets the decision criteria
Term
GATHER FEEDBACK
Definition
Once the decision is made feedback concerning the outcomes is vital to
determine success or missed opportunity
Term
FOLLOW-UP
Definition
Never ending process. Solutions may need to be altered or revised
Term
Effective Decisions:
Definition
A timely decision that meets a desired objective and is acceptable to those
individuals affected by it.
Term
RATIONAL MODEL
Definition
THE OUTCOME WILL BE COMPLETELY RATIONAL
THE DECISION MAKER IS AWARE OF ALL THE POSSIBLE ALTERNATIVES
THE DECISION MAKER CAN CALCULATE THE PROBAITY OF SUCCESS FOR
EACH ALTERNATIVE
Term
In the rational model the decision maker strives to
Definition
OPTIMIZE, that is to select the
best possible alternative
Term
Given the assumptions of the rational model,
Definition
it is unrealistic because there are
time constraints and limits to knowledge and information processing capabilities.
Term
BOUNDED RATIONALITY THEORY
Definition
developed by Herbert Simon
Term
BOUNDED RATIONALITY THEORY
Definition
Managers are comfortable making decisions without determining all the
alternatives
Term
Bounded rationality
Definition
realistically portrays the management decision process
Managers make decisions by rules of thumb (GUT DECISIONS) OR
HEURISTICS
Term
Woman are more averse
Definition
to risk taking then men
Term
Cognitive Style
Definition
An individual’s preference for gathering information and
evaluating alternatives.
Term
Escalation of Commitment
Definition
The tendency to continue to support a failing course of action
Term
Deal with Escalation of Commitment by
Definition
1-Split responsibility for decisions
2-Provide a graceful exit for individuals so their image is not tarnished
3-Have groups rather than individuals make the initial investment decision
diffuses responsibility for failed decision
Term
Z-Model of problem solving has four steps on of them being
Definition
Weigh the impact
Term
Cognitive Style
Definition
An individual’s preference for gathering information and evaluating alternatives.
Term
The left side of your brain is
Definition
the center for logic, detail and planning
Term
The right side of your brain is
Definition
the center for creative functions
Term
Left Hemisphere,
Definition
develop by setting goals for completing tasks, and work
to attain these goals
Term
Right Hemisphere,
Definition
develop by asking “what if” questions.
Ideal is Brain Lateralized
Term
Right Dominance
Definition
Craft a vision-Plan strategically
Term
Intuition:
Definition
fast, positive force in decision making utilized at a level below
consciousness, involves learned patterns of information.
Term
Intuition
Definition
Appears to be a positive force in decision making it is fast
Term
Mintzberg
Definition
in his research found that managers do not appear to use a step by
step approach to decision making based on intuition
Term
Four stages of the creative process name two
Definition
Incubation
Illumination
Term
Incubation
Definition
is a process of reflective thought and is often conducted
subconsciously. SLEEP ON IT
Term
Illumination
Definition
occurs when you sense a resolution to the problem “a
light bulb goes on”
Term
People with a “Positive Mental Attitude
Definition
were more successful for creative
problem solving.
Term
Organizational influences
Definition
Can either support creativity or impede efforts. Creative organizations include supportive relationships with supervisors flexible workplace and participative decision making
Term
Managers of the future
Definition
need to develop competencies in the ability to promote creativity in organizations
Term
FOUR TYPES OF CREATIVITY
Definition
1-Responsive
2-Expected
3-Contributory
4-Proactive
Term
Responsive Creativity
Definition
Responding to problems that is presented to you by others because it
is part of your job
Term
Role of synergy
Definition
A positive force that occurs in groups when group members stimulate new solutions to problems through the process of mutual influence and encouragement within the group
Term
the majority wins rule
Definition
The group support
whatever position is taken by the majority of its members. Studies show that
it is most often used in judgment task (that is when a decision is a matter of
preference or opinion)
Term
The truth wins rule,
Definition
predicts that the correct decision will
emerge as an increasing number of members realize its appropriateness. Used best when the decision has a correct answer
Term
Group Decision Making
Definition
time is a disadvantage of using this
Term
Groupthink
Definition
A deterioration of mental efficiency, reality testing and moral judgment resulting from pressure within the group
Term
Group Polarization
Definition
The tendency for group discussion to produce shifts toward more extreme attitudes among members
Term
group think is more likely to occur when
Definition
a decision must be made quickly,
Term
A recent review of the decision situation in the Challenger incident
identified which two variables as being important to the groupthink phenomena
Definition
Leadership style and time constraints
Term
one of seven Symptoms of Groupthink
Definition
Illusion of Unanimity (The majority view and judgments are assumed to be unanimous)
Term
Remedies for Groupthink
Definition
The leader should avoid stating preferences and expectations at the outset
Term
Remedies for Groupthink
Definition
Once a consensus is reached, encourage the group to rethink its position by
reexamining the alternatives, welcome dissent.
Term
Electronic brainstorming
Definition
reduces apprehension and overcomes two common problems that can produce group brainstorm failure (production blocking and evaluation apprehension)
Term
production blocking
Definition
occurs when listening to others, individuals are distracted from their own ideas
Term
evaluation apprehension
Definition
the fear that others might respond negatively to their ideas.
Term
NOMINAL GROUP TECHNIQUE
Definition
A structured approach to group decision making that focuses on generating
alternatives and choosing one.
1-Silently list ideas
2-Record on a chart
3-Discussion limited to clarify ideas only
4-A written vote is taken
Term
DELPHI TECHNIQUE
Definition
is valuable in its ability to generate a number of independent judgments without the requirement of a face to face meeting.
Term
welcoming dissent
Definition
is an antidote for groupthink in self-managed teams
Term
Intuition
Definition
Involves learned patterns of behavior
Decisions made on “hunches”
Gut Instinct
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