MGM102H5 Chapter Notes - Chapter 3: Bounded Rationality, Satisficing, Organizational Learning
Document Summary
3mgm102: managing decision making and sustainability (go over graphics in text) Manager"s job basically to make decisions, these decisions reveal priorities and context. Managers align their decisions with end result commitments in mind bounded rationality: being rational and making rational decisions has its limits/bounds (simon) Part of every task that managers are involved in. Good decisions come from selection of suitable goals, courses of actions that increase organizational performance programmed decision making: routine, virtually automatic decision making that follows established rules or guidelines. Happened so many times that already know what to do, no judgement needed. When ordering paper, order enough to fill the shelves nonprogrammed decision making: occurs in response to unusual, unpredictable opportunities and threats. No ready-made rules, such as decision to invest in new technology, develop new type of product, enter new market, expand internationally, new promotional campaign. Can be beneficial to manage not only with head, but also heart.
