BUS 272 Lecture Notes - Lecture 12: Brainstorming, Bounded Rationality, Nominal Group Technique

• School: Simon Fraser University
• Department: Business Administration
• Course: BUS 272
• Professor: Lieketen Brummelhuis

Document Summary

A decision is the choice made from two or more alternatives. The rational de cisio n makin g progre ss. Refers to choices that are consistent and value-maximizing within specified constraints. These choices are made following a six-step rational decision making model: define the problem. Problem clarity: the problem is clear and unambiguous and complete information is available. Known options: it"s assu(cid:373)ed that the de(cid:272)isio(cid:374) (cid:373)aker (cid:272)a(cid:374) ide(cid:374)tif(cid:455) all rele(cid:448)a(cid:374)t (cid:272)riteria, all (cid:449)orka(cid:271)le alter(cid:374)ati(cid:448)es, a(cid:374)d their consequences. Clear preferences: the criteria and alternatives can be ranked and weighted to reflect their importance. No time or cost constraints: the decision maker can obtain full information about criteria and alternatives because there. Constant preferences: the specific decision criteria are constant and the weights assigned to them are stable over time are no time or cost constraints. Maximum payoff: the decision maker will choose the alternative that yields the highest perceived value.