MGT 3200 : Exam 2 Objectives From Notes And Outside Reading
Document Summary
P -- specific procedures developed for repetitive and routine problems; 1st-line management concerned; rule or standard operating procedure used in making the decision; different; complex. ** every programmed decision was at one point or another a non-programmed decision: what does the traditional economic model assume about decision-makers? (2 assumptions) Assumption 1: managers seek to maximize benefits (or minimize costs) ( economic man ) Bounded rationality - managers are unable to grasp the full complexity of managerial decisions due to both their limited mental capacity and emotions, and the uncertainty of future events. Satisficing - managers select the 1st alternative that meets a minimally acceptable standard (this is called the aspiration. 15 level which is subjectively defined performance goal that the alternative must meet) rather than going through and evaluating all the alternatives and selecting the best one. Heuristic - a labor saving device, a short cut, a rule of thumb.
