MGT 304 Chapter Notes - Chapter 6: Bounded Rationality, Satisficing, Creativity

• School: University of Miami
• Department: Management
• Course: MGT 304
• Professor: Linda Neider

Document Summary

Entrepreneur: looking for new ideas and opportunities. Disturbance handler: disturbances between 2 coworkers, resolving conflicts and choosing strategic alternatives. Resource allocator: financing goals, starting new project, deadlines, purchasing materials, deciding how to prioritize the direction of resources. Negotiator: protecting the interests of the business by interacting within teams, departments and the organization. Problem or opportunity identification information search and analysis generate alternatives evaluate alternatives make decision (decision with lowest costs and greatest benefit) develop action plans. People satisfice in these situations make a decision that is satisfactory but not optimal. Operate within bounded rationality rather than perfect rationality: simplify complex problems to limit amount of info that needs to be processed, accept first acceptable alternative they come across. Effective way to manage info and make improved decisions. I(cid:374)tegrati(cid:374)g less i(cid:374)fo (sele(cid:272)ti(cid:374)g threshold (cid:448)alues a(cid:374)d a(cid:272)(cid:272)epti(cid:374)g (cid:449)hat is (cid:862)good e(cid:374)ough(cid:863: examining fewer alternatives (use pairwise comparisons and select one alternative from each set)