BUSI 3103 Chapter Notes - Chapter 11: Sequential Logic, Tacit Knowledge, Bounded Rationality

• School: Carleton University
• Department: Business
• Course: BUSI 3103
• Professor: Rumisa Shaukat

Document Summary

Organizational decision making: is formally defined as the process of identifying and solving problems. Problem identification stage: information about environmental and organizational conditions is monitored to determine if performance is satisfactory and to diagnose the cause of shortcomings. Problem solution stage: occurs when alternative courses of action are considered and one alternative is selected and implemented. Programmed decisions: are repetitive and well defined, and procedures exist for resolving the problem. Nonprogrammed decisions: are novel, ill structured, and poorly defined, and no procedure exists for solving the problem. Rational approach: monitor, define, decision objectives, diagnose problem, develop alternatives, Individual decision making: rational approach and bounded rationality perspective. Bounded rationality perspective: which describes how decisions actually have to be made under severe time and resource constraints. Intuitive decision making: experience and judgment rather than sequential logic or explicit reasoning are used to make decisions. Management science approach: research and science meant to supplement decision making.