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.

-              Groupthink: occurs when a group exerts extensive pressure on an individual to withhold his or her different views in order to appear to be in agreement.

-              Intuitive decision making: making decisions on the basis of experience, feelings, and accumulated judgment.

-              Escalation of commitment: increased commitment to a previous decision despite evidence that it may have been a poor decision.

-              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)

-              Rational decision making: describes choices that are logical and consistent and maximize value.

-              Intuitive decision making: making decisions on the basis of experience, feelings, and accumulated judgment.