MANAGMNT 301 Lecture Notes - Lecture 1: Bounded Rationality, Delphi Method, Brainstorming
23 Oct 2017
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Document Summary
Managerial decision making (chapter 7: conscious, choice, course, action, available, alternatives. Characteristics of managerial decision: risk, uncertainty, decision makers have insufficient information. Cleat goals; alternatives/ future events unknown: lack of structure, programmed vs. non-programmed decision, conflict, within vs. between individuals. Uncertainty of risk: risk, the probability of success is less than a 100% percent and losses may occur. Clear-cut goals; good information; chance alternative: certainty, decision makers have accurate and comprehensive information, uncertainty, decision makers have insufficient information. Cleat goals; alternatives/ future events unknown: ambiguity, by far the most difficult situation. Goals/ problems are unclear, alternatives are difficult to define, information is unavailable. Identify and diagnosing the problem: generating alternative solutions, evaluation alterative. Making choices: maximizing, decision realizing the best possible outcome, optimizing, achieving the best possible balance among several goals, satisficing, choosing an option that is acceptable, although not necessarily the best or perfect option. Barriers to decision making: psychological barriers, time pressure, social realities.
