MGMT 310 chapter 6 notes
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This 1 page Class Notes was uploaded by Alex Mars on Monday February 9, 2015. The Class Notes belongs to a course at Kansas taught by a professor in Fall. Since its upload, it has received 23 views.
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Date Created: 02/09/15
Alex Mars Chapter 15 Decision Making and Organizational Learning Types of Decisions 0 Nonprogrammed decision making is how to respond to new or unusual opportunities and problems that has not been experienced before 0 Programmed decision making is how to respond to issues that are routine or common A performance program is a standard sequence of behaviors to follow whenever encountering one of the specific problems Often evolve from nonprogrammed decisions Decision Making Process 0 Classical model perceptive how people should make decisions I People have access to all info people choose the best possible response Not a realistic model 0 March and Simons administrative model I Descriptive how people actually make decisions make satisfactory not optimal solutions Satisficing is choosing acceptable responses based on limited information Bounded rationally is people having a limited ability to process information Sources of Error in Decision Making 0 Heuristics and the effects simplify decision making using shortcuts or rules of thumb I Availability heuristic tendency to use your memory for the frequency and causes of an event Representative heuristic is predicting it will happen in the future because it happened in the past Anchoring and adjust is making decisions based on an initial amount or quantity 0 Escalation of Commitment I Tendency to invest additional effort time and money into bad decisions or unproductive coursed of actions I Don t want to admit they made a mistake believing more resources put in to a project will make the loss not as bad wanting to take risks Case Study We Googled You Fred Westen the CEO of the luxury apparel retailer Hathaway Jones is planning to expand his business to three of the largest cities in China Beijing Guangzhou and Shanghai His old college buddy has a daughter Mimi that had grown up in China and spoke both Mandarin and a local dialect She went to Berkley and got her MBA from Stanford She wants to be a part of Fred s retail chain expansion to China so she gets an interview Fred likes her but Virginia the VP of human resources did a routine google search on Mimi and found she was the leader of a protest group that helped mobilize campaigns against the World Trade Organization She informs Fred and gives her opinion of the riskiness and how it could get the company into trouble in China Fred does not want her to get taken by other competition so he has a big decision to make
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