MGM102H5 Chapter Notes - Chapter 4: Information System, Customer Relationship Management, Cognitive Bias
Document Summary
Chapter 4- managing decision making and sustainability - textbook notes: commitments frame the context within which managers make decisions. Nature of managerial decision making: bounded rationality- being rational and making rational decisions has its limits; we are not always rational in the way we make our decisions. Opens up possibilities for other ways of organizing and rewriting organizational theory: decision making- the process by which managers analyze the options facing them and make decisions about specific organizational goals and courses of action. Programmed and nonprogrammed decision making: programmed decision making- routine, virtually automatic decision making that follows established rules or guidelines. Decisions that have been made so many times in the past that managers have been able to develop rules/guidelines to be applied when certain situations occur. Causes the most problems for managers because the situation is unexpected, and managers lack information they would need to develop rules to cover it. Example- decisions to invest in new technology.
