Managment 301 Chapter 12 Book Notes
Managment 301 Chapter 12 Book Notes Management 301
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This 3 page Study Guide was uploaded by Stephanie Marie on Sunday February 8, 2015. The Study Guide belongs to Management 301 at a university taught by Professor Mangaliso in Fall. Since its upload, it has received 317 views.
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Date Created: 02/08/15
Chapter 12 Individual and Group Decision Making 0 Decision making a process of specifying the nature of a particular problem or opportunity and selecting among available alternatives to solve a problem or capture an opportunity 0 Two parts the act and the process 0 Act choosing between alternatives 0 Process Formulation involves identifying a problem or opportunity acquiring information and diagnosing the factors affecting the problem or opportunity Solution involves generating alternatives selecting the preferred solution and implementing the decided course of action Individual Decision Making 0 The Classical or Rational Model 0 Represents the earliest attempt to model decision making processes 0 Seven Steps 0 Step 1 Identifying Decision Situations A problem exists when a manager detects a gap between the firm s existing and desired performance Opportunity exists when a manager sees a way for the rm to achieve a more desirable state than the one its currently in o Perception the way you look at a situation Based on own experiences personalities and needs 0 Step 2 Developing Objectives and Criteria Figure out what outcome you want 0 Step 3 Generating Alternatives How exactly can you solve the problem 0 Step 4 Analyzing Alternatives Eliminate alternatives that won t get the job done minimal results 0 Step 5 Selecting Alternatives Subjectively expected utility SEU model 0 A model of decision making that asserts that managers choose the alternative that they subjectively believe maximizes the desired outcome 0 Step 6 Implementing the Decision Assess sources and reasons for potential resistance to the decision O O O OO O O O Determine the chronology and sequence of actions designed to overcome resistance to the decision and ensure the effective implementation of the decision Assessment of resources required to implement the decision effectively Step 7 Monitoring and Evaluating Results The Bounded Rationality Model Administrative model A model that assumes that people usually settle for acceptable rather than maximum options because the decisions they confront typically demand greater information processing capabilities than they possess People settle for less Limited rationality People are heuristics a rule that guides the search for alternatives into areas that have high probability for yielding success Helps make decisions quicker Satis cing choosing a minimally acceptable solution rather than searching exhaustively for the alternative that produces the best result Look for a solution that is acceptable The Retrospective Decision Model A decision making model that focuses on how decision makers attempt to rationalize their choices after they are made Implicit favorable model Perceptual distortion highlighting the positive features of the implicit favorite over the alternative lntuitive decision making the primarily subconscious process of identifying a decision and selecting a preferred alternative Types of Decisions Programmed decision standard response to a simple or routine problem Nonprogrammed decisions made in response to problems that are either complex or novel Standard operating procedures established procedure for action used for programmed decisions that specifies exactly what should be done Gresham s law of planning tendency of managers to let programmed activities overshadow nonprogrammed activities Group Decision Making 0 Similar to individual decision making but the social interactions make it different 0 Wider range of viewpoints Greater acceptance of a nal outcome 0 Individuals work better at carrying out decision Group Think Occurs when agreement among members becomes so dominant that it overrides a realistic appraisal of alternative course of action Escalating Commitment to a Decision 0 The tendency to exhibit greater levels of commitment to a decision as time passes and investments are made in the decision even after signi cant evidence emerges indicating that the original decision was incorrect Prospective rationalitya belief that future courses of action are rational and correct Crossfunctional team a work group composed of employees from different departments such as nance marketing operations and human resources to work together on problem solving Structured debate a process to improve a problem formulation that includes the process of devil s advocate multiple advocacy and dialectical inquiry Devil s advocate group member whose role is to disagree with the group Multiple advocacy like the devil s advocate approach except that more than one opposing view is present Dialectal inquiry occurs when a group or individual is assigned the role of questioning the underlying assumptions of problem formation
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