Term
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Definition
| is the condition in which a decision maker is able to estimate the likelihood of certain outcomes |
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Term
| According to Karl Weik, a highly reliable organization (HRO) is an organization that ________ |
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Definition
| can easily and quickly adapt to changing environment, and can easily spot the unexpected. |
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Term
| Highly Reliable Organizations (HROs) have what five habits in common? |
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Definition
1. HROs are not tricked by their successes. They are preoccupied with failures. They are alert to the smallest deviation from what they expected, and react quickly and early.
2. defer to the experts on the frontline. They get their input from the front-line workers that have daily interaction with customers, producers etc. and know what will/wont work
3. HROs let unexpected circumstances provide the solution.
4. Embrace Complexity- aim for deeper understanding of their specific situation.
5. Anticipate and recognize Limits. They realize they cannot anticipate everything |
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Term
| When making decisions, what are the three conditions that managers face? |
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Definition
1. Certainty
2. Risk
3. Uncertainty |
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Term
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Definition
| Certainty is the most favorable condition for a manager. It allows them to make more accurate decisions because the outcome of every alternative is known. |
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Term
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Definition
In these situations the decision is based on the limited amount of available information, and their psychological orientation.
Optimistic manager decides based on a "Maximax" choice
Pessimistic manager follows "Maximin" choice
A manager who desires to minimize his maximum "regret" opts for a "Minimax" choice |
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Term
| Implementing an alternative refers to the process of choosing the best alternative |
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Definition
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Term
| Escalation of commitment refers to _______ |
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Definition
an increased commitment of a previous decision, despite evidence that it may have been wrong
EX: the Challenger space shuttle, rather than finding new alternatives, managers simply increase their commitment bc they don't want to admit their initial decisions was wrong |
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Term
| The linear thinking style |
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Definition
| Is characterized by a person's preference for the use of external data and facts that then process through rational and logical to guide decision/action |
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Term
| The manager of an apparel store estimates how much to order for the current spring season based on last spring's sales figures. The store manager is operating under which of the following decision-making conditions? |
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Definition
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Term
| The final step in the decision making process is ______ |
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Definition
| evaluate the outcome of the decision |
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Term
| The final step in the decision making process is ______ |
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Definition
| evaluate the outcome of the decision |
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Term
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Definition
| This thinking style is characterized by a preference for INTERNAL sources of information, and processing this with internal insights, feelings or hunches |
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Term
| What do managers need to do to make effective decisions in today's fast-moving world? |
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Definition
1. Understand cultural differences
2. Know when it is time to call it quits
3. Use effective decision making process- focused, logical/consistent, blend analytical with intuitive thinking
4. Build an organization that can spot the unexpected and quickly adapt to changed environment (HROs) |
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Term
| what are the 5 different aspects of Intuitive decision making? |
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Definition
1. experience based decisions
-based on past experiences
2. Affect initiated-decisions
-based on feelings/emotions
3. Cognitive based decisions
-based on skills, knowledge, and training
4. Values or ethics based decisions
-based on ethical values or cultural
5. Subconscious mental processing
-based on data from subconscious mind |
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Term
Intuitive decision making can complement BOTH rational and bounded rational decision making
TRUE OR FALSE? |
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Definition
TRUE
b/c manager's with experience can act quickly on limited information, and individuals who have experienced intense emotion when making a decision actually achieved higher decision making performance |
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