Business Administration 2295F/G Lecture Notes - Lecture 5: Confirmation Bias, Rationality, Satisficing

• School: Western University
• Department: Business Administration
• Course: Business Administration 2295F/G
• Professor: Hayden Woodley

Document Summary

Decision making: the process of developing a commitment to some course of action. Involves making a choice among several action alternatives. It is a process that involves more than simply the final choice among alternatives. Involves the commitment of resources like time, money or personnel. Decision-making can also be seen as a process of problem-solving. Problem = perceived gap between an existing and desired state. 2 structures of problems: well-structured problems and ill-structured problems. Well-structured problem: 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. Organizations attempt to program the decision making for well- structured problems. A program is a standardized way of solving a problem: includes rules, routines, standard operating procedures, or, some programs are only in the head and some are more.