Decision-Making and Ethics in Management

A collection of vocabulary flashcards covering key concepts in decision-making and ethics in management.

Decision-making

The action or process of identifying a strategy to resolve problems.

Programmed decisions

Routine tasks based on preestablished rules and guidelines.

Nonprogrammed decisions

Decisions based on reason and/or intuition in response to a unique situation that requires tailored actions.

Classical model of decision-making

A five-step model that includes defining the problem, identifying decision criteria, generating alternatives, rating alternatives, and choosing the best alternative.

Value orientation

The extent to which a person focuses on either task and technical concerns or people and social concerns when making decisions.

Tolerance for ambiguity

The extent to which a person has a high need for structure or control in life.

Satisficing

Choosing the first acceptable alternative.

Bounded rationality

The idea that decision-making is constrained by a person’s cognitive limitations.

Heuristics

Mental shortcuts that allow people to solve problems and make judgments quickly and efficiently.

Common-information bias

The tendency to give disproportionate weight to information held by the majority of group members.

Confirmation bias

The tendency to search for, interpret, favor, and recall information in a way that confirms one's preexisting beliefs.

Sunk cost bias

The tendency to continue investing in a failing project to justify previous investments.

Framing bias

The tendency to make decisions based on how the situation is presented.

Goal-setting theory

The theory that suggests human performance is directed by conscious goals and intentions.

SMART goals

Specific, measurable, achievable, relevant, and time-bound objectives.

Corporate social responsibility (CSR)

Efforts made by corporations to drive positive environmental and societal change.

Social entrepreneurship

The process of sourcing innovative solutions to social and environmental problems.

Ethical decision-making principles

Frameworks guiding moral decision-making, including legal, individual, virtuous, and utilitarian considerations.

Internalizing a negative externality

Proactively addressing a harmful consequence of business operations.