manager as decision maker

Risk

Decision maker is able to estimate the likelihood of certain outcomes.

Certainty

Decision maker can make accurate decisions: all outcomes are known.

Uncertainty

Decision maker has neither certainty nor reasonable probability estimates.

Groupthink

Group exerts extensive pressure on an individual to withhold his or her different views in order to appear to be in agreement.

Escalation of commitment

Increased commitment to a previous decision despite evidence it may have been wrong.

Satisfice

To accept solutions that are 'good enough'.

Bounded rationality

Decision making that’s rational but limited by an individual’s ability to process information.

Rational decision making

Describes logical, consistent & maximizing value choices.

Policy

Guideline for making decisions.

Rule

Explicit statement that tells managers what can or cannot be done.

Procedure

Series of sequential steps used to respond to a well-structured problem.

Decision criteria

Define what’s important or relevant to resolving a problem.

Nominal group technique

Decision-making technique in which group members are physically present but operate independently.

Brainstorming

Idea-generating process that encourages alternatives while withholding criticism.

Electronic meeting

Type of nominal group technique in which participants are linked by computer.

Intuitive decision making

Making decisions on the basis of experience, feelings, and accumulated judgment.

Structured problem

Straightforward, familiar, and easily defined problem.

Unstructured problem

Problem that is new or unusual and for which information is ambiguous or incomplete.

Nonprogrammed decision

Decision that is unique and nonrecurring and requires a custom-made solution.

Repetitive decision

Can be handled by a routine approach (programmed decision).