Management and Organizational Studies 1023A/B Chapter 4: MOS Ch 4 Textbook Notes

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 1023A/B
• Professor: Maria Ferraro

Document Summary

Accounting: information for decision-making: what is the problem, what are the options, what are the costs and benefits, make the decision. Identifying the set of options is one of the most important tasks of management. As such, the value of the same option might differ among decision makers: opportunity cost. Opportunity cost is the value of what you give up by making your decision. Of any decision option is the value to the decision maker of the next best option. Business typically measure value and opportunity cost in terms of money, or profit. Paul dimovski: effective decision makers ensure that the value of the chosen decision option exceeds it opportunity cost. Decision making in organizations: the four step decision making framework applies equally well to both individual and organizational decisions. Organizations done make decisions; the people who make up the organization do. Individual goals might differ from organizational goals, leading to actions that are not in the firm"s best interest.