COMMERCE 1BA3 Chapter Notes - Chapter 11: Group Decision-Making, Bounded Rationality, Decision-Making

• School: McMaster University
• Department: Commerce
• Course: COMMERCE 1BA3
• Professor: Teal Mc Ateer

Document Summary

Decision making: the process of developing a commitment to some course of action. Problem: a perceived gap between an existing state and a desired state. Well structured problem: a problem for which the existing state is clear, and how to get one state to the other is fairly obvious. Program: a standardized way of solving a problem. Go under labels like: rules, routines, standard operating procedures, or rules of thumb. Iii structured problem: a problem for which the existing and desired states are unclear and the method of getting to the desired state is unknown. Perfect rationality: a decision strategy that is completely informed, perfectly logical and oriented toward economic gain. Bounded rationality: a decision strategy that relied on limited information and that reflects time constraints and political considerations. Framing: aspects of the presentation of information about a problem that are assumed by decision makers.