MGM102H5 Chapter Notes - Chapter 4: Learning Organization, Disneymania, Bounded Rationality
Document Summary
Process by which mgmers analyze the options facing them and make decisions about specific organizational goals and courses of action. Routine, virtually automatic, tht follows established rules or guidelines. Occurs in response to unusual, unpredictable opportunities and threats. Prescriptive approach to decision making based on the idea. (1) the decision maker can identify and evaluate all possible alternatives and their consequences. Assumes mgm have mental ability to process info. (3) rationally choose the most suitable course of action (optimum) Assumes mgm know what future is best for org. Explains why decision making is basically uncertain and risky and why managers usually make satisficing rather than optimum decisions. Cognitive limitations that constrain one"s ability to interpret, process and act on information. Amount of info and alts too great and difficult. Even w/ unlimited ability, there is still uncertainty so probabilities of outcomes cannot be determined and outcomes are unknown.
