Management Chapter 2

• Decision-making: The action or process of thinking through possible options
• Stakeholders: All the individuals or groups affected by an organization
• Reactive Decision-making: Quick, impulsive, and intuitive decisions, relying on emotions or habits
• Reflective Decision-Making: Logical, analytical, deliberate, and methodical decision making
• Programmed Decisions: Repeated over time & an existing set of rules can be developed to guide the process
• Heuristics: Mental shortcuts that help reach decisions quickly
• Nonprogrammed Decisions: Novel, unstructured decisions based on criteria that are not well defined
• The decision-making process:

  1. Recognize a decision needs to be made
  2. Generate multiple alternatives
  3. Analyze the alternatives
  4. Select an alternative
  5. Implement the selected alternative
  6. Evaluate its effectiveness
• Rational Decision Making: weighting criteria & research different alternatives & assigning rank for each alternative based on individual criteria
• Rational Decision-making Process:

  1. Decide on criteria
  2. Weight the criteria based on its importance
  3. Rate how well an alternative meets the criteria
  4. Multiply the weight of criteria by the rating to produce a score for each
  5. Total the score columns to generate a total for each alternative
• Bounded Rationality: The idea that there is a limit to the information we can get
• Time Constraints: Little time available to collect information and to rationally process it
• Uncertainty: can not know the outcome of each alternative
• Personal Biases: Tend to be more comfortable with ideas that are familiar
• Satisficing: Decision maker selects the first acceptable solution
• Critical thinking: Evaluating the quality of information to determine whether a source is good
• Non Sequitur: the conclusion that is presented isn't a logical conclusion
• False Cause: Assuming that because 2 things are related, one caused the other
• Ad Hominem: Redirects from the argument itself to attack the person making the argument
• Genetic fallacy: You can't trust someone because of it's origins
• Appeal to tradition: If we always have done one particular way, must be best way
• Bandwagon approach: If majority people do it, must be good
• Appeal to emotion: Redirects argument from logical to emotions
• Groupthink: Group members choose not to voice their concerns as rather keep peace
• Groupthink: Group members choose not to voice their concerns as rather keep peace
• Suppression of dissent: When group member exerts their power to prevent others from voicing their opinions