MGMT1001 Study Guide - Quiz Guide: Tacit Knowledge, Bounded Rationality, Satisficing
31 May 2018
School
Department
Course
Professor
Rational decision making
Stage 1 Identify the problem or opportunity --> Stage 2 Think up alternative
solutions --> Stage 3 Evaluate alternative an select solution --> Stage 4 Implement
and evaluate the solution chosen.
Assumptions of the rational model
Complete information, no uncertainty.
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Logical, unemotional analysis.
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Best decision for the organisation.
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Non-rational decision making
Bounded rationality: the ability of decision makers to be rational is limited
by numerous constraints.
1.
Satisficing model: due to constraints, managers don't make an exhaustive
speech for the best alternative, rather they seek alternatives until they find
one that is satisfactory, not optimal.
2.
Incremental model: take small, short-term steps to alleviate a problem; not
seeking to accomplish a long-term solution.
3.
Intuition: Is making a choice without the use of conscious thought or logical
inference. Stems from:
4.
Expertise: a person's explicit and tacit knowledge about a person, a
situation, an object or a decision opportunity known as a holistic hunch.
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Automated experience: the involuntary emotional response to those same
matters.
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Guidelines for developing intuitive awareness
Open up the closet: to what extent do you trust your feelings, suppress
hunches, rely upon gut?
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Don’t mix up your I's: instinct, insight, intuition.
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Elicit good feedback: seek feedback on judgements.
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Get a feel for your batting average: benchmark your intuitions
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Use imagery: visualise potential future scenarios
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Play devils' advocate: test out intuitive judgements
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Capture and validate your intuitions: create inner state to give your
intuitive mind the freedom to roam
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Individual and group decision making
Thursday, 8 March 2018
8:17 pm
Document Summary
Stage 1 identify the problem or opportunity --> stage 2 think up alternative solutions --> stage 3 evaluate alternative an select solution --> stage 4 implement and evaluate the solution chosen. Bounded rationality: the ability of decision makers to be rational is limited by numerous constraints. Satisficing model: due to constraints, managers don"t make an exhaustive speech for the best alternative, rather they seek alternatives until they find one that is satisfactory, not optimal. Incremental model: take small, short-term steps to alleviate a problem; not seeking to accomplish a long-term solution. Intuition: is making a choice without the use of conscious thought or logical inference. Expertise: a person"s explicit and tacit knowledge about a person, a situation, an object or a decision opportunity known as a holistic hunch. Automated experience: the involuntary emotional response to those same matters. Don t mix up your i"s: instinct, insight, intuition. Get a feel for your batting average: benchmark your intuitions.
