BUSI 3310 Chapter 11: Decision Making: Learning Objectives and Key Terms
16 Mar 2018
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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, the desired state is clear, and how to get from one state to the other is fairly obvious. Program: a standardized way of solving a problem. Ill-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 relies 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. Cognitive biases: tendencies to acquire and process information in an error-prone way.
