MGT262H5 Chapter Notes - Chapter 11: Decision-Making, Bounded Rationality, Sunk Costs
Document Summary
Decision making - the process of developing a commitment to some course of action. fundamental parts of decision making: Decision making involves making a choice among several action alternatives. Decision making is a process that involves more than simply final choice among alternative it is also about the how how the decision is reached. Commitment mentioning the in the definition involves some commitment of resources, such as time, money or personnel. Decision making is a process of problem solving. Well structured problems a problem for which the existing state is clear, the desired state is clear, and how to get from one state to the other is fairly obvious. Because there is still room for error in even well structures problems, programs are set up to standardize the way of solving the problem for well structured problems. Program a standardized way of solving a problem usually called rules, routines, standard operating procedures.
