MGT262H5 Chapter Notes - Chapter 11: Bounded Rationality, Confirmation Bias, Rationality
Document Summary
Decision making is the process of developing a commitment to some course of action. Decision making involves making a choice among several action alternatives. Decision making is a process that involves more than simply the final choice among alternatives. The commitment usually involves some commitment of resources such as time, money, personnel. Decision making can also be described as a process of problem solving a problem exists when a gap is perceived between some existing state and some desired state. A well-structured problem is when the existing state is clear, the desired state is clear, and how to get from one state to the other is fairly obvious. These problems are simple and solutions arouse little controversy. A program is simply a standardized way of solving a problem. Programs short-circuit the decision-making process by enabling the decision-maker to go directly from problem identification to solution.
