What is a decision?
a choice made from among available alternatives.
What is decision making?
the process of identifying and choosing alternative courses of action.
what is the rational model?
explains how managers should make decisions.
4 stages of rational decision making:
stage 1 - identify the problem or opportunity
Managers need to determine the actual cause of the problem rather than simply reacting to the symptoms.
4 stages of rational decision making:
stage 2 - think up alternative solution
Managers should come up with multiple possible solutions.
Managers should come up with multiple possible solutions.
Stage 3 - evaluate alternatives and select a solution
Managers evaluate each possible solution.
Managers evaluate each possible solution.
Stage 4 - implement and evaluate the solution
Once a solution is selected, the manager must actually put it into action.
Non-rational decision making
Real-world limitations make finding the absolute best solution difficult.
Satisficing model
Find a candidate who meets the important requirements and hire them rather than continuing the search indefinitely.
Intuition
Managers may sometimes make decisions based on a hunch or feeling rather than going through every step of the rational model.
decision-making biases
rules of thumb, or "heuristics," that can influence how people make decisions.
group decision making
when multiple people work together to make a decision.
Groupthink
occurs when group members try to agree for the sake of unanimity and therefore fail to accurately evaluate the decision situation.