ADM 1300 Lecture Notes - Lecture 10: Decision-Making, Representativeness Heuristic, Delphi Method

• School: University of Ottawa
• Department: Administration
• Course: ADM 1300
• Professor: Matthew Archibald

Document Summary

Assess how informaion is used to make decisions. Informaion data made useful for decision making. Idea of analyics: systemaic gathering and processing of data to make informed decisions. Process by which managers make a choice between two or more alternaives to solve a problem. Non-programmed unusual situaions that have not oten been addressed. Certainty very rare, manager knows exactly what will happen. Risk use of probabiliies, outcome can be esimated. Uncertainty nothing is known, alternaives are not known, can"t assign probabiliies. Decision making steps : idenify and deine the problem: sparked by an event either internally or externally, generate and evaluate alternaives: managers must develop feasible alternaive course of acion. Availability heurisic: make judgment based on recent event (base decision on past situaions, even though not the same) Representaive heurisic: bases a decision on similarity to other situaions. Anchoring: use an iniial value from prior experience and give it a strong with in the inal decision.