MGT-2010 Chapter Notes - Chapter 7: Bounded Rationality, Satisficing, Management System
9 Mar 2018
School
Department
Course
Professor
Document Summary
Chapter 7 (7. 1, 7. 2, 7. 3, 7. 5, & 7. 6): 7. 1: two kinds of decision making: rational & nonrational. Decision: a choice made from among available alternatives. Decision making: the process of identifying and choosing alternative courses of action. The curse of knowledge: as our knowledge and expertise grow, we may be less and less able to see things from an outsider"s perspective hence we are apt to make irrational decisions. Rational decision making: managers should make logical & optimal decisions. Rational model of decision making (aka classical model): explains how managers should make decisions; it assumes managers will make logical decisions that will be the optimum in furthering the organization"s best interest. Stage 1: identify the problem or opportunity determining the actual versus the desirable. Problems: difficulties that inhibit the achievement of goals. Opportunities: situations that present possibilities for exceeding existing goals. Improvements: how to change conditions from the present to desirable.
