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Canada (162,369)
Management (865)
MGM102H5 (217)
Chapter 4

chapter 4 notes.docx

2 Pages
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Department
Management
Course Code
MGM102H5
Professor
Dave Swanston

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Chapter 14: Managing Decision Making and Sustainability Bounded Emotionally: sometimes called the management of emotion, that is the inclusion of emotional expression in organization for purposes of productivity Decision Making: process by which managers analyze options facing them and make decisions about specific organizational goals and courses of action Programmed Decision Making: routine, virtually automatic decision making that follows established rules or guidelines Non-programmed decision making: nonroutine decision making that occurs in response to unusual, unpredictable opportunities and threats Rational decision making model: prescriptive approach to decision making based on idea that the decision maker can identify and evaluate all possible alternatives and their consequences and rationally choose the most suitable course of action Optimum decision: best decision in light of what managers believe to be most desirable future consequences for their organization Administrative model: approach to decision making that explains why decision making is basically uncertain and risky and why managers usually make satisficing rather than optimum decisions Bounded rationally: cognitive limitations that constrain one’s ability to interpret, process and act on information Ambiguous information: information that can be interpreted in multiple and often conflicting ways Satisficing: searching for and choosing acceptable or satisfactory ways to respond to problems and opportunities rather than trying to make the best decision Judgement: ability to develop a sound opinion based on one’s evaluation of the importance of information at hand Steps in decision making 1. Recognize need for decision 2. Generate alternatives 3. Assess alternatives a. Criteria i. Practicality : whether have capabilities and resources to implement alternative and not threaten firm’s goals ii. Economic feasibility: decide whether alternatives make sense economically and fit to perform firm’s performance goals iii. Ethicality: ensure that possible course of action is ethical and not unnecessarily harm any stakeholder group iv. Legality: ensure that possible course of action = legal and not violate any domestic and international laws or government regulation 4. Choose among alternatives 5. Implement chosen alternative 6. Learn from feedback a. Compare what actually happened to what was expected as result of decision b. Explore why any expectations for decision were not met c. Develop guidelines that will help in future decision making Cognitive Bias • Plunging in : beginning to gather info and reach conclusion too early • Frame blindness: create mental framework for your decision • Lack of frame control: fail to define problem in more than one way • Over confidence in judgment: fail to gather key factual info • Shortsighted shortcuts: relying inappropriately on “rules of thumb: • Shooting from hip: failing to follow a systematic procedure when making final decision • Group f
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