MGT 300 EXAM 2 LATEST VERSION 100% SOLVED

MGT 300 EXAM 2 LATEST VERSION 100% SOLVED 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. programmed decision making Routine, virtually automatic decision making that follows established rules or guidelines. non programmed decision making non-routine decision making that occurs in response to unusual, unpredictable opportunities and threats. Intuition feelings, beliefs, and hunches that come readily to mind and require little effort and info gathering and result in on-the-spot decisions. reasoned judgment A decision that requires time and effort and results from careful information gathering, generation of alternatives, and evaluation of alternatives. optimum decision The most appropriate decision in light of what managers believe to be the most desirable future consequences for the organization. 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. bounded rationality Cognitive limitations that constrain one's ability to interpret, process, and act on information. risk The degree of probability that the possible outcomes of a particular course of action will occur. uncertainty unpredictability ambiguous information Information that can be interpreted in multiple and often conflicting ways. satisficing Searching for and choosing an acceptable, or satisfactory, response to problems and opportunities, rather than trying to make the best decision. heuristics rules of thumb that simplify a problem, allowing one to solve problems quickly and easily. systematic errors Errors that people make over and over and that result in poor decision making 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. representative bias a cognitive bias resulting from the tendency to generalize inappropriately from a small sample or from a single vivid event or episode. illusion of control A source of cognitive bias resulting from the tendency to overestimate one's own ability to control activities and events. escalating commitment continuing to invest