SMO310 Lecture 10: Chapter 10 - Decision Making

• School: University of Alberta
• Department: Strategic Management and Organization
• Course: SMO310
• Professor: Richard Field

Document Summary

Levels of decision making: straightforward decisions that occur frequently enough that an automated response, unique and require conscious thinking, information gathering, and careful consideration of alternatives. The automated response in a programmed decision is called the decision rule. Rational decision-making model: identify the problem (hardest, establish decision criteria, weigh decision criteria, generate alternatives, evaluate the alternatives, choose the best alternative, implement the decision, evaluate the decision. Assumes that people understand what the decision is. Assumes that people know all their available choices. Assumes that people have no perceptual biases. Assumes that people want to make optimal decisions. Individuals knowingly limit their options and choose the best alternative without conducting an exhaustive search for alternatives. May be satisfied when accepting the first alternative that meets minimum criteria. Creative decision-making process: problem recognition, immersion, incubation, illumination, verification & application. The hardest thing for people to do is to restrain themselves from criticizing an idea before it is implemented, or deferring judgement .