MGM102H5 Chapter Notes - Chapter 4: Decision-Making, Bounded Rationality, Satisficing
Document Summary
How managers make decisions and individuals, and the organization affect the quality of decisions. Bounded rationality being rational and making rational decisions has its limits due to the nature of the human mind. Bounded emotionality sometimes called the management of emotion, that is, inclusion of emotional expression in organizations for the purpose of productivity. Every time a manager plans, organizes, directs or controls, they must make a stream of decisions. Decision making process where managers analyzed options facing them and make decisions about organizational goals and courses of action. Programmed decision making routine, automatic decision making that follows established rules or guidelines and are made all the time (i. e. ordering supplies) Manages do not really need to make judgments constantly. Non-programmed decision making non-routine decision-making that occurs win response to unpredictable opportunities and threats to the organization (i. e. decision to invest in new technology, develop new product, etc. )
