BUS 237 Lecture Notes - Lecture 8: Online Transaction Processing, Data Quality, Intellectual Capital

• School: Simon Fraser University
• Department: Business Administration
• Course: BUS 237
• Professor: Peter Tingling

Document Summary

Decision making is choosing from a range of alternatives. Day-to-day management involves constant quick decision making (both routine and non-routine) Decision making process is much more complicated for three reasons: the concept of rationality is hard to define. Rationality is a totality, hard to nail down the concept: good outcomes may occasionally result from irrational processes, and bad outcomes can result from good processes. Flip a coin on firing or hiring someone irrational but the outcome might be positive: humans intend to be rational, but there are limits on our cognitive capabilities bounded rationality . Bounded rationality: there"s only so much we can do. Generate alternative decisions choice: select one of the alternatives. Many models, there is no single theory for decision making. Managers perform high-volume, high-speed work involving a large number of topics -- often under stress. As a result, managers don"t have time to collect all required information.