Term
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Definition
| the act of choosing one alternative from among a set of alternatives |
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Term
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Definition
- the process of recognizing and defining the nature of a decision situation, identifying alternatives, choosing the "best" alternative, and putting it into practice
- an effective decision is on that optimizes some set of factors such as profits, sales, employee welfare, and market share
- managers make decisions about both problems and opportunities. |
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Term
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Definition
| - a decision that is a fairly structured decision or recurs with some frequency or both |
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Term
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Definition
| a decision that is relatively unstructured and occurs much less often than a programmed decision. |
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Term
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Definition
programmed decisions
nonprogrammed decisions |
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Term
| decision making conditions |
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Definition
- decision making under certainty
- decision making under risk
- decision making under uncertainty |
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Term
| decision making under certainty |
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Definition
| a condition in which the decision maker knows with reasonable certainty what the alternatives are and what conditions are associated with each alternative |
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Term
| decsion making under risk |
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Definition
| the availability of each alternative and its potential payoffs and costs are all associated with risks |
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Term
| decision making under uncertainty |
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Definition
| a condition in which the decision maker does not know all the alternatives, the risks associated with each, ot the consequences of each alternative. |
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Term
| factors that prevent rationality |
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Definition
- lack of consensus
- unclear means-end relations
- noisy environment |
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Term
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Definition
| - there must be a general agreement of the definition of problems, decisions, and decision-maaking goals at the beginning |
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Term
| unclear means-end relations |
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Definition
| it is impossible to generate an exhaustive list of alternatives then select the most promising |
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Term
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Definition
| the link between outcome and actions is hard to predict. |
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Term
| behavioral aspects of decision making |
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Definition
bounded rationality
satisficing
coalition
intuition
escalation of commitment
risk propensity
ethics. |
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Term
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Definition
| the concept that decision makers are limited by their values and unconsious reflexes, skills, and habits |
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Term
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Definition
| the tendency to search for alternatives only until one is found that meets some minimum standard of sufficiency to resolve the problem |
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Term
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Definition
| a political force in decision making which consists of an informal alliance of individuals or groups formed to achieve a goal. |
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Term
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Definition
| an innate belief about something without conscious consideration |
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Term
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Definition
| a decsion maker is staying with a decsion even when it appears to be wrong |
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Term
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Definition
| the extent to which a decision maker is willing to gamble when making a decision. |
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Term
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Definition
| initial probability given no other information. |
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Term
| ethics and decision making |
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Definition
| individual ethics (personal beliefs about rigth and wrong behavior) combine with the organizations ethics to creat manageral ethics |
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Term
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Definition
- relationships of the firm to employees
- empoyees to the firm
- the firm to other economic agents. |
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Term
| forms of group decision making |
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Definition
interaction groups or tems
delphi graoups
nominal groups
brainstorming |
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Term
| interaction groups or teams |
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Definition
| the most common form of decision-making groups which consists of an existing group or newly formed team interaction and then making a decision |
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Term
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Definition
| are sometimes used for developing a consensus of expert opinion from a panel of experts who individually contribute through a moderator |
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Term
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Definition
| a structured technique designed to generate creative and innovative ideas through the individual contributions of alternatives that are winnowed down through a series of rank-ordering of the alternatives to reach a decision |
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Term
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Definition
- criticism is not allowed
-free-wheeling is welcome
-quantity is encouraged
-combination and improvement are sought |
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Term
| disadvantages of group and team decision making |
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Definition
groupthing
compliance
choice shifte |
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Term
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Definition
| the groups desire for consensus and cohesiveness overwhelms its desire to reach the best decision |
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Term
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Definition
| ppl conform to others expectation or behaviours in the hope of acquiring rewards or avoiding punishment |
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Term
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Definition
| tendency for groups to make decision that appear more extreme than the decsions group member wouldd have on their own. |
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Term
| ways managers can promote the effectiveness of group and team decision making |
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Definition
- being aware of the pros and cons of having a group or team make a decision
- setting deadlines for when decisions must be made
- avoid problems with dominace by managing group membership
- have each group member individually critically evaluate all alterantives
- as a manager, do not make your position know too early
- appoint a group member to be a "devel's advocate"
- hold a follow-up meeting to recheck the decision |
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