MGMT 311 Chapter Notes - Chapter 9: Bounded Rationality, Satisficing, Moral Disengagement

• School: Binghamton University
• Department: Management
• Course: MGMT 311
• Professor: Dennis Mc Gee

Document Summary

Programmed decisions: routine decisions that address specific problems and result in relatively structure solutions; follow a set of policies, procedures, or rules developed through past experience with similar decisions. Non-programmed decisions: novel decisions that require unique solutions; unstructured, and require managers to use creativity rather than experience to find good solutions. Strategic decisions: address the long-term direction and focus of the organization, and usually made by executive-level management. Operational decisions: focus on the day-to-day running of the company, and usually made by lower-level management. Top-down: directive decisions made solely by managers who then pass them down to lower-level employees for implementation. Decentralized decisions: when employees, not managers, make decisions about their work. Status quo bias: our tendency to not change what we are doing unless the incentive to change is compelling. Set goals and identify evaluation criteria: determine our goals for the decision outcome. Identify alternatives: identify alternative and determine if the opportunity is worth pursuing.