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1 Apr 2011
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Chapter 11
Decision making (problem solving) - develop commitment to some course of action
- make a choice, make a commitment of resources (time, money, personnel )
Problem - a gap between some existing state and some desired stat
W ell-structured problem clear existing state and desired state
-clear how to get from one state to the other is fairly obvious
Program (standardized way) - solve a problem with well-structured problems
- enable to go directly from problem identification to solution
I ll-structured problem - unclear existing and desired states
-unknown method of getting to the desired state
-unique, complex, and have not been encountered before
-cannot be solved with programmed decisions
-gather more information and be more self-consciously analytical in their approach
-entail high risk and stimulate political considerations
Traditional Analytical Model
Identify the problem define objectives make a predecision generate alternatives
evaluate alternatives make a choice implement choice follow up
Perfect rationality - completely informed, perfectly logical, and oriented toward economic gain
Herbert Simon:
Bounded rationality - try to act rationally
limited in their capacity to acquire and process information
time constraints and political considerations
may not know all alternative solutions
ignorant of the ultimate values and probabilities of success for known alternatives
O peration of B ounded R ationality
Framing - information about a problem that are assumed by decision makers
-Error in judgment arising from the selective use of perspective (i.e., the way in which
information is presented) that alters the way we view a situation in forming a decision
Cognitive biases - acquire and process information in an error-prone way
-assumptions and shortcuts that improve decision making efficiency but lead to serious
errors in judgment
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Document Summary

Decision making (problem solving) - develop commitment to some course of action. Make a choice, make a commitment of resources (time, money, personnel (cid:0) Problem - a gap between some existing state and some desired stat. Clear existing state and desired state clear how to get from one state to the other is fairly obvious. Program (standardized way) - solve a problem with well-structured problems. Enable to go directly from problem identification to solution. Identify the problem  define objectives  make a predecision  generate alternatives. evaluate alternatives  make a choice  implement choice  follow up . Perfect rationality - completely informed, perfectly logical, and oriented toward economic gain.  limited in their capacity to acquire and process information.  ignorant of the ultimate values and probabilities of success for known alternatives. Framing - information about a problem that are assumed by decision makers.

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