MGT 300 EXAM 2
1. decision making: the process by which managers respond to opportunities
and threats by analyzing options and making determinations about specific
organizational goals and course of action. The essence of management.
2. programmed decision making: Routine, virtually automatic decision making
that follows established rules or guidelines.
3. non programmed decision making: non-routine decision making that occurs
in response to unusual, unpredictable opportunities and threats.
4. Intuition: feelings, beliefs, and hunches that come readily to mind and require
little effort and info gathering and result in on-the-spot decisions.
5. reasoned judgment: A decision that requires time and effort and results from
careful information gathering, generation of alternatives, and evaluation of
alternatives.
6. optimum decision: The most appropriate decision in light of what managers
believe to be the most desirable future consequences for the organization.
7. administrative model: An approach to decision making that explains why
decision making is inherently uncertain and risky and why managers usually
make satisfactory rather than optimum decisions. Based on: bounded
rationality, incomplete information, satisficing.
8. bounded rationality: Cognitive limitations that constrain one's ability to
interpret, process, and act on information.
9. risk: The degree of probability that the possible outcomes of a particular
course of action will occur.
10. uncertainty: unpredictability
11. ambiguous information: Information that can be interpreted in multiple and
often conflicting ways.
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12. satisficing: Searching for and choosing an acceptable, or satisfactory,
response to problems and opportunities, rather than trying to make the best
decision.
13. heuristics: rules of thumb that simplify a problem, allowing one to solve
problems quickly and easily.
14. systematic errors: Errors that people make over and over and that result in
poor decision making
15. prior-hypothesis bias: A cognitive bias resulting from the tendency to base
decisions on strong prior beliefs even if evidence shows that those beliefs are
wrong.
16. representative bias: a cognitive bias resulting from the tendency to
generalize inappropriately from a small sample or from a single vivid event or
episode.
17. illusion of control: A source of cognitive bias resulting from the tendency to
overestimate one's own ability to control activities and events.
18. escalating commitment: continuing to invest time and resources in a failing
decision
19 groupthink: tendency for group members to think alike with certainty of
correctness, biased perceptions of outgroup members, and generally defective
decision-making processes
20. dialectical inquiry: critical analysis of two preferred alternatives in order to
find an even better alternative for the organization to adopt
21. organizational learning: The process through which managers seek to
improve employees' desire and ability to understand and manage the organization
and its task environment.
22. learning organization: An organization in which managers try to maximize
the ability of individuals and groups to think and behave creatively and thus
maximize the potential for organizational learning to take place.
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1. decision making: the process by which managers respond to opportunities
and threats by analyzing options and making determinations about specific
organizational goals and course of action. The essence of management.
2. programmed decision making: Routine, virtually automatic decision making
that follows established rules or guidelines.
3. non programmed decision making: non-routine decision making that occurs
in response to unusual, unpredictable opportunities and threats.
4. Intuition: feelings, beliefs, and hunches that come readily to mind and require
little effort and info gathering and result in on-the-spot decisions.
5. reasoned judgment: A decision that requires time and effort and results from
careful information gathering, generation of alternatives, and evaluation of
alternatives.
6. optimum decision: The most appropriate decision in light of what managers
believe to be the most desirable future consequences for the organization.
7. administrative model: An approach to decision making that explains why
decision making is inherently uncertain and risky and why managers usually
make satisfactory rather than optimum decisions. Based on: bounded
rationality, incomplete information, satisficing.
8. bounded rationality: Cognitive limitations that constrain one's ability to
interpret, process, and act on information.
9. risk: The degree of probability that the possible outcomes of a particular
course of action will occur.
10. uncertainty: unpredictability
11. ambiguous information: Information that can be interpreted in multiple and
often conflicting ways.
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, .
12. satisficing: Searching for and choosing an acceptable, or satisfactory,
response to problems and opportunities, rather than trying to make the best
decision.
13. heuristics: rules of thumb that simplify a problem, allowing one to solve
problems quickly and easily.
14. systematic errors: Errors that people make over and over and that result in
poor decision making
15. prior-hypothesis bias: A cognitive bias resulting from the tendency to base
decisions on strong prior beliefs even if evidence shows that those beliefs are
wrong.
16. representative bias: a cognitive bias resulting from the tendency to
generalize inappropriately from a small sample or from a single vivid event or
episode.
17. illusion of control: A source of cognitive bias resulting from the tendency to
overestimate one's own ability to control activities and events.
18. escalating commitment: continuing to invest time and resources in a failing
decision
19 groupthink: tendency for group members to think alike with certainty of
correctness, biased perceptions of outgroup members, and generally defective
decision-making processes
20. dialectical inquiry: critical analysis of two preferred alternatives in order to
find an even better alternative for the organization to adopt
21. organizational learning: The process through which managers seek to
improve employees' desire and ability to understand and manage the organization
and its task environment.
22. learning organization: An organization in which managers try to maximize
the ability of individuals and groups to think and behave creatively and thus
maximize the potential for organizational learning to take place.
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