MGT 3200 : Exam 2 Outline
Document Summary
We make decisions to accomplish goals efficiently. Types of decisions: programmed- specific procedures that have been developed for repetitive and routine problems. The management of most organizations face great numbers of programmed decisions. Managers make more programmed decisions: nonprogrammed- specific to management problems that are novel and unique; complex and unstructured. Decision-making conditions: certainty-managers know all the available alternatives and the outcomes associated with each; 100% probability; least common. Programmed: risk- alternatives are known, but outcomes are in doubt; 0-100% probabilities; most common. Key to making good decisions under risk is accurately determining the probabilities associated with each alternative. Programmed & non-programmed: uncertainty- managers don"t know alternatives, their potential outcomes, or the probability of the outcomes; no probabilities; most difficult. Prescriptive model because it"s what you should do: totally rational decision maker, maximization-assumes managers seek to maximize benefits, behavioral model. 2: bonded rationality- decisions are made under bounded rationality .
