ADMS 2400 Lecture Notes - Lecture 10: Bounded Rationality, Availability Heuristic, Sunk Costs

• School: York University
• Department: Administrative Studies
• Course: ADMS 2400
• Professor: Indira Somwaru

Document Summary

Nov 20 lecture 10 (case: alice"s expense account) Pros: greater acceptance of decision, multiple perspectives, pooling of resources, specialization. Cons: intimidation by group leader, conflict, waste of time. Group decision making is generally better for complex problem making. Pros: faster, low conflict, no group think. Individual decision making is a single/simple problem requiring expert opinions (ex: lawyer/legal) Program vs. non-program: structured (program) vs. non-structured (non-program, structured: routine, lower level ppl, predetermined courses of action, non-structured: no ready made solutions, the dm bases a unique problem requiring a novel solution (ex: strategic planning/downsizing) Certain vs. uncertain (degree of risk: low-risk (certain) vs. high-risk (uncertain) Top-down vs. empowered: top down: management, empowered: employee"s are involved in making decisions that affect them. The decision-maker considers all possible alternatives before selecting the optimal solution. Assumptions: the decision-maker has complete and perfect info, unbiased and objective in processing info. Only partial knowledge of alternatives and their.