MGT 3200 : MANAGEMENT 3200 EXAM TWO OBJECTIVES (FROM THE NOTES & OUTSIDE READING)
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Exam two objectives (from the notes & outside reading) Programmed decisions are specific procedures that have been developed for repetitive and routine problems. When a decision is made under conditions of certainty the managers know all available alternatives and their outcomes. When decisions are made under conditions of uncertainty managers don"t know alternatives, their potential outcomes, or the probability of the outcomes occurrence. Easiest to program- certainty; most likely non-programmed- uncertainty; risk could be either one: what does the traditional economic model assume about decision-makers? (2 assumptions) maximize benefits and managers are completely rational. Managers select the first alternative that meets a minimally acceptable standard. A heuristic is a labor saving device, a short cut, a rule of thumb. Advantages are time savings and may produce more good decisions then bad decisions. Is the availability of an event by degree to which those instances of that event are recalled.
