MGM102H5 Chapter Notes - Chapter 4: Bounded Rationality, Cognitive Bias, Organizational Learning
Document Summary
Commitments frame the context within which managers make decisions. To the best of their ability, managers align their decisions with the end result in mind: their commitments. Decision making: the process by which managers analyze the options facing them and make decisions about specific organizational goals and courses of actions. Programmed decision making: routine, virtually automatic decision making that follows established rules or guidelines takes place for much of the day-to-day running of an organization ex. Ordering supplies managers do not need to make judgments constantly about what should be done managers can develop rules and guidelines to regulate all kinds of routine organizational activities. Non-programmed decision making: decision making that occurs in response to unusual, unpredictable opportunities and threats no rules that managers can apply to a situation ex. Whether or not a company should invest in a new technology, enter a market causes the most problems for managers.
