Decision Making and Planning Processes

These flashcards cover key concepts related to decision making, problem-solving, cognitive styles, and planning processes as discussed in the lecture.

Certainty

A situation in which a manager can make an accurate decision because the outcome of every alternative choice is known.

Risk

A situation in which the manager estimates the likelihood (probability) of outcomes resulting from the choice of specific alternatives.

Uncertainty

Limited information that prevents estimation of outcome probabilities for alternatives, often forcing managers to rely on intuition.

Decision-Making Process

A structured approach consisting of identifying a problem, generating alternatives, selecting a solution, implementing it, and evaluating its effectiveness.

Cognitive Styles

Frameworks that describe how individuals process information and make decisions, categorized as thinking and feeling or sensing and intuition.

Systematic Thinking

An approach to problem-solving that is rational and analytical.

Intuitive Thinking

An approach to problem-solving that is flexible and spontaneous.

Satisficing

Choosing the first acceptable option rather than the best one.

Scenario Planning

A planning method that identifies several alternative future scenarios and makes tentative plans for each.

Sunk Cost Fallacy

Continuing investment in a decision based on prior investment rather than future value.

Benchmarking

Using external comparisons to gain insights for planning and performance measurement.

Participatory Planning

A planning approach that includes the people affected by plans who will implement them, increasing motivation and commitment.

Control Process

A process that includes establishing objectives and standards, measuring actual performance, comparing results to standards, and taking corrective actions.

Competitive Advantage

The ability to outperform rivals in the market.

Growth Strategy

A plan that outlines how a firm intends to expand its business, either within existing areas or into new domains.

Feedback Control

Control measures taken after an event has occurred to adjust actions based on results.