MGT 3200 Chapter : Exam 2 Objectives 1
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Most closely associated w/ planning decision b/c it affects every other decision. P -- specific procedures developed 4 repetitive & routine problems; 1st-line; rule or standard operating procedure used in making the decision; different; complex. Managers know all available alternatives & the outcomes associated w/ each; Don"t know alternatives, their potential outcomes, or the probability of the outcomes occurrence. ** every programmed decision was @ one point or another & non-programmed decision! Decisions are made under conditions of certainty (a) managers seek to maximize benefits {or minimize costs} (b) managers are completely rational. Decisions are made under bounded rationality rather than complete satisficing (good enough) rather than maximizing. You don"t know everything, try but its limited! A labor saving device, a mental short cut, a rule of thumb. Advantages: (a) time savings & (b) they may produce more good decisions than bad decisions. When heuristics lead to errors in judgment, they are called biases.
