LEC 10 and 11.docx

7 Pages
Unlock Document

University of Toronto Scarborough
Management (MGH)
Joanna Heathcote

LEC 1011 DECISION MAKING Decision making is the process of developing a commitment to some course of action a process of problem solving it involves making a choice among several action alternatives it is a process it involves a commitment of resources A problem exists when a gap is perceived bw some existing state and some desired stateWellstructured problems existing state is clear the desired state is clear and how to get from one state to another is fairly obvious simple and their solutions arouse little controversy repetitive and familiar they can also be programmedA program is a standardized way of solving a problemalso known as rules standard operating procedures or rules of thumb provide a useful means of solving wellstructured problems programs are only as good as the decisionmaking process that led to the adoption of the program in the first place Illstructured problems existing and desired states are unclear and method of getting to the desired state is unknown unique and unusual problems that have not been encountered before tend to be complex and involve a high degree of uncertainty they frequently arouse controversy and conflict cannot be solved with programmed decisions decision makers must resort to nonprogrammed decision making they can entail high risk and stimulate strong political considerationsThe Rational Decision Making Process Identify problemsearch for relevant infodevelop alternative solutions to the problemevaluate alternative solutionschoose best solutionimplement chosen solutionmonitor and evaluate chosen solutionPerfect Rationalitya decision strategy that is completely informed perfectly logical and orientated toward economic gain the prototype for perfect rationality is Economic Person who is the perfect cool calculating decision makerEconomic PersonCan gather info wo cost and is completely informedPerfectly logicalOnly criterion for decision making is economic gainBounded rationalitya decision strategy that relies on limited info and that reflects time constraints and political considerations
More Less

Related notes for MGHB02H3

Log In


Don't have an account?

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.