BUSI 610 Chapter Notes - Chapter 12: Satisficing, Daniel Kahneman, Richard Cyert
14 Mar 2017
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Organizational decision making: process of identifying and solving problems, stages (2, problem identification. Information about environmental and organizational conditions is monitored to determine if performance is satisfactory and to diagnose the cause of shortcomings: problem solution, alternative courses of action are considered and one alternative is selected and implemented. Programmed decisions: repetitive and well defined, and procedures exist for resolving the problem. Nonprogrammed decisions: novel and poorely defined, and no procedure exists for solving the problem. New decision making requirements (6: must be made faster, no one individual has all information needed, require more cooperation, rely less on hard data, there is less certainty about outcomes, evolve through trial and error. Rational approach: suggests an ideal method for how managers should try to make decisions. Bounded rationality perspective: describes how decisions actually have to be made under severe time and resource constraints.
