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ADM2336 - Ch11 Decision Making

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Catherine Elliott

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Decision Making What is decision makingDecision making is the process of developing a commitment to some course of actionDecision making o Involces a choice among several action alternative o Is a process o Involves a commitment of resourcesWellstructured problemsA problem for which the existing state is clear the desired state is clearSuch problems are repetitive and familiarSolved using rules routines standard operating procedures Difficulty with these types of problems Illstructured problemA problem for which the existing and desired states are unclear and the method of getting to the desired state is unknownUnique unusual complex involve a high degree of uncertaintyDecision makers must resort to nonprogrammed decision making Bounded RationalityWe are limited in our capacity to acquire and process informati
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