BUS 2090 Chapter Notes - Chapter 11: Bounded Rationality, Sunk Costs, Confirmation Bias
Document Summary
* items marked by a italicize and bold may be found in key terms . The process of developing a commitment to some course of action. Involves making a choice among several action alternatives: a process that involves more than simply the final choice among alternatives. Involves some commitment of resources; time, money or personnel. A process of problem solving (alternate definition) Involves the perception of the existing state, the conception of the desired state, and the steps required to move from one state to the other. A problem for which the existing state is clear, the desired state is clear, and the steps required to switch from state to state are clear. Simple solutions; may be repetitive and familiar: ex. Assistant bank manager which of these 10 loan applications should i approve: organizations attempt to program decision-making for well-structured problems- rules, routines, standard operation procedures, rules of thumb.
