MHR 405 Chapter Notes - Chapter 7: Satisficing, Tacit Knowledge, Confirmation Bias

• School: Ryerson University
• Department: Human Resources
• Course: MHR 405
• Professor: Kristin Vickers

Document Summary

Decision making: process of making choices among alternatives with the intention of moving towards some desired state of affairs. Effective decision makers identify, select and apply the best possible alternative. Two elements of rational choice: subjective expected utility (seu): determines choice with highest value (maximization, decision making process: systematic stages of decision making. Rational choice decision-making process: identify problem or opportunity. Problem: a deviation between the current and the desired situation; what is and what ought to be: ought to be goals that help evaluate the selected choice. Opportunity: a deviation between current expectations and a potentially better situation that was not previously expected: decision makers realize that some decisions may produce results beyond goals or expectation, choosing the best decision process. Programmed decisions: follow standard operating procedures (past problems resolved) Non-programmed decisions: requires all steps in decision model (new, complex or ill-defined problems: rational choice decision-making process.