MAN 3025 Chapter Notes - Chapter 7: Big Data, Decision Support System, Bounded Rationality

• School: University of Florida
• Department: Management
• Course: MAN 3025
• Professor: Archambeau Lindy

Document Summary

Decision- choice made from among available alternatives. Decision making- process of identifying and choosing alternative courses of action: 2 systems. Slow, deliberate, analytical, consciously effortful mode of reasoning: as our knowledge and expertise grow we may be less and less able to see things from an outsider"s perspective and make irrational decisions. Rational model of decision making- classical model, explains how managers: assumes managers will make logical decisions that will be optimum in furthering the organization"s best interests should make decisions, 4 stages. Describes how managers should make decisions not how they actually make decisions. Nonrational models of decision making- explains how managers make decisions, they assume that decision making is nearly always uncertain and risky: makes it difficult for managers to make optimal decisions, 2 models. Satisficing model- managers seek alternatives until they find on e that is satisfactory, not optimal. Bounded rationality- suggests that the ability of decision makers to be rational is limited by numerous constraints.