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Week7 Decision Making - Coggle Diagram
Week7 Decision Making
What Is Decision Making?
Decision making is the process of developing a commitment to some course of action.
Three things are noteworthy about decision making:
It involves a choice among several action alternatives.
It is a process.
It involves a commitment of resources.
Decision making can also be described as a process of problem solving.
A problem exists when a gap is perceived between some existing state and some desired state
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Ill-Structured Problems
A problem for which the existing and desired states are unclear, and the method of getting to the desired state is unknown.
Unique and unusual problems that have not been encountered before.
They are complex and involve a high degree of uncertainty.
Arouse controversy and conflict. They cannot be solved with programmed decisions.
Decision makers must resort to nonprogrammed decision making.
They can entail high risk and stimulate strong political considerations.
Well-Structured Problems:
A problem for which the existing state is clear, the desired state is clear, and how to get from one state to another is fairly obvious.
Such problems are repetitive and familiar and can be programmed.
A program is a standardized way of solving a problem.
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Escalation of Commitment
The tendency for individuals to continue to support previously unsuccessful courses of action because they have sunk costs invested in them
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Intuition
Intuitive Decision Making
An unconscious process created out of distilled experience.
Conditions Favoring Intuitive Decision Making
A high level of uncertainty exists
There is little precedent to draw on
Variables are less scientifically predictable
“Facts” are limited
Facts don’t clearly point the way
Analytical data are of little use
Several plausible alternative solutions exist
Time is limited and pressing for the right decision
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Perception
A process by which individuals organize and interpret their sensory impressions in order to give meaning to their environment.
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People’s behavior is based on their perception of what reality is, not on reality itself.
The world as it is perceived is the world that is behaviorally important.
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In business as in politics, the effectiveness of a decision is the quality of the decision multiplied by the acceptance of it.