6 Decision Making Free Online FlashCards

What is managerial decision making?

Decision making is choosing among possible courses of action to address problems or pursue opportunities.

What should managers do when defining an issue?

Describe the gap or opportunity precisely, separate observable facts from assumptions, and investigate possible causes before choosing a remedy.

What belongs in decision criteria?

Specify what success should achieve and compare options using relevant criteria, such as cost, quality, time, risk, fairness, and stakeholder effects. Identify non-negotiable constraints.

How should managers generate alternatives?

Develop more than one feasible option, including taking no action when appropriate. Different expertise or perspectives can help with complex choices.

What should managers consider when evaluating alternatives?

Compare each option against the criteria and available evidence, considering risks, likely consequences, uncertainty, and what may happen if assumptions are wrong.

What makes a decision ready for implementation?

Choose an option, assign responsibilities, provide needed resources, and communicate how the decision will be carried out.

Why review a decision's outcome?

Compare actual results with the objectives. If the decision has not solved the problem, learn from the results and adjust the plan.

How do programmed and nonprogrammed decisions differ?

Programmed decisions recur and use established rules or procedures. Nonprogrammed decisions are new or unusual and require more analysis.

What is bounded rationality?

Bounded rationality is the practical limit on decision making caused by restricted time, information, and human attention.

What does it mean to satisfice?

Satisficing means selecting an option that meets important requirements when the absolute best choice cannot be established.

What is confirmation bias?

Confirmation bias is giving extra weight to evidence that supports an existing belief while discounting contrary evidence.

What is anchoring in decision making?

Anchoring is relying too heavily on an initial number or piece of information when making later judgments.