RSM260H1 Chapter Notes - Chapter 11: Groupthink, Nominal Group Technique, Delphi Method
Document Summary
Chapter 11: decision making: define decision making and differentiate well-structured and ill-structured problems. Decision making: the process of developing a commitment to some course of action. Problem: a perceived gap between an existing state and a desired state. Well structured problem: exiting state and desired states are clear, how to get from one state to the other is fairly obvious. Because decision making is prone to error, organizations attempt to program the decision making. Perfect rationality: a decision strategy that is completely informed, perfectly logical, and oriented toward economic gain bounded rationality: trying to act rationally, but are limited in capacity to acquire and process info time constraints and political considerations. Bounded rationality can lead to difficulties in problem identification: Perceptual defence: perceptual system may act to defend the perceiver against unpleasant perceptions. Problem defined in terms of functional specialty: selective perception can cause decision makers to view a problem as being in the domain of their own specialty.
