MGT 201 Chapter Notes - Chapter 9: Brainstorming, Computer Network, Groupthink
Document Summary
Good decision making is a vital part of good management, but decision making is not easy. Decision making is the process of identifying problems and opportunities and then resolving them. A decision is a choice made from available alternatives. A programmed decision is one made in response to a situation that has occurred often enough to enable managers to develop decision rules that can be applied in the future. A nonprogrammed decision is one made in response to a situation that is unique, is poorly defined and largely unstructured, and has important consequences for the organization. Decisions differ according to the amount of certainty, risk, uncertainty, or ambiguity in the situation. Certainty is a situation in which all the information the decision maker needs is fully available. Risk means that a decision has clear-cut goals and good information is available, but the future outcomes associated with each alternative are subject to chance.
