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Foundations of Decision Making (Common Errors and Biases (Availability,…
Foundations of Decision Making
Approaches
Bounded Rationality
Intuition and Managerial Decision Making
Subconscious Mental Processing
Values or Ethics-Based Decisions
Experience-Based Decisions
Affect-Initiated Decisions
Cognitive-Based Decisions
Rational Model
process
4.Development of Alternatives
5.Analysis of Alternatives
3.Allocation of Weights of Criteria
6.Selection of an Alternative
2.Identification of Decision Criteria
7.Implementation of the Alternative
1.Identification of a Problem
8.Evaluation of Decision Effectiveness
Common Errors and Biases
Availability
Representation
Framing
Randomness
Confirmation
Selective Perception
Anchoring Effect
Immediate Gratification
Overconfidence
Sunk Costs
Self-Serving
Hindsight
types of decisions
Programmed
nonprogrammed
decision-making conditions
risk
uncertainty
certainty
types of problems
Unstructured problem
Structured problem
Group Decision Making
Advantages
Diversity of experiences/perspectives
More complete information
More alternatives generated
Increased acceptance of solution
Increased legitimacy
Disadvantages
Minority domination
Ambiguous responsibility
Time-consuming
Pressures to conform
HOW
Task forces
Review panels
Committees
Work teams