MGT 3200 : Exam2
Document Summary
P specific procedures developed to repetitive & routine problems; lst-line; rule or standard operating procedure used in making the decision; different; complex. Managers know all available alternatives & the outcomes associated w/ each; ** every programmed decision was @ one point or another & non-programmed decision: what does the traditional economic model assume about decision-makers? (2 assumptions) Decisions are made under conditions of certainty (a) managers seek to maximize benefits {or minimize costs} (b) managers are completely rational. Decisions are made under "bounded rationality" rather than complete . satisficing rather than maximizing. You don"t know everything, try but its limited! A labor saving device, a short cut, a rule of thumb. Advantages: (a) time savings & (b) they may produce more good decisions than bad decisions. Used when managers assess the frequency of an event by the degree to which those instances of that event are easily recalled in memory; something memorable has to be frequent, not memorable it"s infrequent.
