ADM 2336 Lecture : ADM2336 - Ch11 Decision Making

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Document Summary

Decision making is the process of developing a commitment to some course of action. A problem for which the existing state is clear, the desired state is clear. A problem for which the existing and desired states are unclear, and the method of getting to the desired state is unknown. Unique, unusual, complex, involve a high degree of uncertainty. Decision makers must resort to non-programmed decision making. We are limited in our capacity to acquire and process information. A decision strategy that relies on limited information and that reflects time constraints and political considerations. Framing and cognitive biases illustrate the operation of bounded rationality as does the impact of emotions and mood on decisions. Tendencies to acquire and process information in a particular way that is prone to error. Assumptions and shortcuts that can improve decision-making efficiency but frequently lead to serious errors in judgement. Therefore aspects of the problem are assumed by decisions makers.