MGM102H5 Chapter Notes - Chapter 3: Amos Tversky, Daniel Kahneman, Bounded Rationality
Document Summary
Managers make decisions in view of the commitments they have agreed to or envisioned as important for their department or organization. Commitments, therefore, frame the context within which managers make decisions. To the best of their ability, managers align their decisions with the end-result in mind: their commitments. Every time a manager acts to plan, organize, direct or control organizational activities, he/she makes a stream of decisions. Decision making is the process by which managers analyze the options facing them and make determinations or decisions about specific organizational goals and courses of action. These are decisions that have been made so many times in the past that managers have been able to develop rules or guidelines. These take place in day-to-day running of an organization. Like when storage shelves are 3/4 empty, you have to order more inventoy. And when you order more inventory, make sure it"s enough to fil the shelves.
