MGT 3200 : MGMT EXAM 2 REVIEW
Document Summary
Exam two objectives (from the notes & outside reading) Program repetitive, routine, rule, standard operating procedure (don"t have to think) The probability associated with the outcomes is how you tell the difference. Know your alternatives, but have no idea of what they"re going to lead to. Certainty program lots uncertainty non-programming risk could be both: what does the traditional economic model assume about decision-makers? (2 assumptions) Completely rational (you know all your alternatives, outcomes, know probabilities are. Prescriptive model, in a perfect world , what you should do: under what decision-making condition do decisions get made in the traditional economic model, what does the behavioral model assume about decision-makers, bounded rationality and satisfice. Don"t know everything and don"t always select the best possible alternative. Go through each alternative and find one that"s just good enough and settle. Satisficing can lead to maximizing, the best one could be the first one.
