Chapter 7: Beyond Glossary Concepts

Programmed Decision

A decision-making process that relies on established rules, procedures, or guidelines to solve a recurring problem.

Unprogrammed Decision

a decision made in unique, unstructured situations where guidelines do not exist, often requiring creativity and judgment.

Certain vs Risk vs Uncertain environments

A decision made in complex situations with no clear guidelines or rules to follow.

Unprogrammed decisions often require creative problem-solving and judgment.

Rational vs bounded rationality

Rationality refers to making decisions based on logical reasoning and complete information,

while bounded rationality acknowledges the limitations of individuals in processing information and the constraints they face when making decisions.

Availability, representativeness, anchoring biases

are cognitive biases that influence decision-making under uncertainty. These biases can lead individuals to rely on immediate examples, perceived similarities, or initial information when making judgments.

Heuristics

Mental shortcuts used in decision-making.

Steps in decision making

A systematic process involving identifying options, evaluating alternatives, and selecting a course of action. It helps individuals and organizations make informed choices.