Man3025 Quizlet

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1. Decision choice made from among available alternatives

2. Decision Making process of identifying and choosing alternative courses of action

3. Rational model

of decision making

Also called the classical model, assumes managers will be logical and make the

optimal decision for maximum benefit to the organization

4. No rational models of decision

making

Assume that decision making is nearly always uncertain and risky; making it

difficult for managers to make optimal decisions; includes satisficing and intuition

5. Satisficing Type of non rational decision making in which managers seek alternatives until

they find one that is satisfactory, though not necessarily optimal

6. Bounded rationality

Idea that the ability of decision makers to be rational is limited by numerous

constraints

7. Hubris An extremely inflated sense of pride, certainty, and confidence

8. Intuition making a choice without the use of conscious thought or logical inference

9. data analytics Analyzing raw data sets in order to make conclusions about the information they

contain

10. Directive Style Decision-making style with low tolerance for ambiguity and task/technical value

orientation; efficient, practical, systematic, logical, action - oriented, decisive,

focused on facts, concerned about the short run, exercises power and control

11. Analytical style Decision making style with high tolerance for ambiguity and task/technical value

orientation; carefully considers information, takes longer to make decisions, responds well to new situations

12. Conceptual style

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Decision - making style with high tolerance for ambiguity and people/social value

orientation; takes a broad perspective, focused on the long term, considers many

options, indecisive, takes risks, comes up with creative solutions, relies on intuition

and discussions

13. Behavioral style Decision making style with low tolerance for ambiguity and people / social

value orientation, works well with others, avoids conflict, shows concern for others, is receptive to suggestions, prefers in-person over written communication,

wish-washy; difficulty saying no

14. Heuristics Strategies that simplify the process of making decisions

15. Availability bias Tendency to make judgements based on what information is readily available from

memory, often giving more weight to more recent events

16. Representativeness bias

Tendency to generalize from a small sample or a single event

17. Confirmation

bias

Tendency to seek information that supports an individuals own point of view and

discount data that does not

18. Sunk cost bias Fallacy that involves concluding it would be too costly to simply abandon a project,

based on money already spent on it

19. Anchoring and

adjustment bias

Tendency to make decisions by using an initial figure as a reference point

20. Overconfidence

bias

Tendency of individuals to have subjective confidence in their own decision making that is greater than their objective accuracy

21. Hindsight bias Tendency to view past events as being more predictable than they actually were

22. Framing bias Tendency to be influenced by the way a situation or problem is presented

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23. Escalation of

commitment

bias

Tendency to increase commitment to a project despite negative information about

it

24. Categorical

thinking bias

Tendency to classify people or information based on observed or inferred characteristics

25. Business model Outline of needs the firm will fill, the operations of the business, its components

and functions, as well as the expected revenues and expenses

26. Business plan A document that outlines a proposed firms goals, the strategy for achieving them,

and the standards for measuring success

27. Mission statement

Expresses the organization's purpose or reason being

28. Vision statement expresses what the organization should become and where it wants to go strategically

29. Strategic planning

Top managers determine what the organization's long-term goals should be for

the next 1-5 years with the resources they expect to have available

30. Operational

planning

First-line managers determine how to accomplish specific tasks with available

resources within the next 1 week to one year into the future

31. Tactical planning Middle managers determine what contributions their departments or similar

work units can make during the next 6-24 months with their given resources

32. Operating plan Describes the company's activities and their short term objectives for the next 1-52

weeks, based on the action plan, and identifies clear targets such as revenues,

cash flow, and market shares

33. Operational

goals

set by and for first-line managers and are concerned with short-term matters

associated with realizing tactical goals

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34. Strategic goals set by and for top management and focus on objectives for the organization as a

whole

35. Tactical goals set by and for middle managers and focus on the actions needed to achieve

strategic goals

36. Cascading objectives

goals structured in a unified hierarchy, becoming more specific at lower levels of

the organization

37. Planning/control