BUS 2090 Lecture Notes - Lecture 7: Bounded Rationality, Rationality, Nominal Group Technique
19 Dec 2016
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Document Summary
Decision making: the process of developing a commitment to some course of action. Involves making a choice among several action alternatives, decision making is a process which ultimately comes to making a commitment. Well structure problems: a problem for which the existing state is clear, the desired state is clear, and the how to get from one state to the other is fairly obvious. Ill structured problems: a problem for which the existing and desired states are unclear and the method of getting to the desired state is unknown. Generally unusual and have not been encountered before. Tend to be complex and involve a high degree of uncertainty. Arouse controversy and con ict among people who are interested in the decision. The complete decision maker - a rational decision making model. Perfect rationality: a decision strategy that is completely informed, perfectly logical, and oriented toward economic gain.
