Managerial Decision Making Concepts

The process where managers identify opportunities and threats, analyze options, and make decisions about specific organizational goals and actions.

A decision made based on established rules or guidelines, leading to routine and automatic actions.

A decision involving unique situations, calling for a careful analysis and consideration of various options.

A decision-making approach that assumes decision-makers have limited information, rationality, and resources, leading them to choose satisfactory instead of optimal solutions.

The belief that decision-makers are limited in their ability to process information, leading them to make simplified judgments based on available information.

The act of choosing the most suitable option among all possible alternatives, considering the organization's desired consequences.

A decision-making approach where a manager relies on feelings, beliefs, and intuitive insights, made quickly with little effort and information gathering.

A decision that requires careful consideration, time, and effort, involving information gathering, generating alternatives, and evaluating them to reach a conclusion.

When we don't have enough information to make a clear decision, due to uncertainty, risk, or time constraints.

The chance that a specific outcome will happen.

When we can't estimate the likelihood of different outcomes, making future results unpredictable.

Information that can be interpreted in multiple ways, leading to conflicting understandings.

The act of searching for and choosing a satisfactory solution, rather than striving for the best possible outcome.

Simple rules that help us make decisions quickly, but can lead to systematic errors.

Recurring errors in decision-making, often caused by using heuristics.

An organization that focuses on continuous learning and improvement, encouraging creativity and innovation among its members.

The ability to generate new and unique ideas that can lead to practical solutions.

A group decision-making technique where participants generate ideas and solutions independently before sharing and ranking them.

A decision-making method where group members stay anonymous and respond to questions in writing, allowing for unbiased opinions.

Individuals who identify opportunities, gather resources, and create new products or services.

Individuals committed to using entrepreneurial approaches to address social problems and improve society's wellbeing.

A brainstorming technique where participants freely share ideas without criticism.

A potential drawback in brainstorming where individuals get stuck waiting for their turn to speak, leading to less effective idea generation.

A cognitive bias where individuals tend to overestimate their ability to control events and activities.

A decision making bias that occurs when individuals or groups continue to invest in a failing project, even when evidence suggests it should be stopped.

A group decision making process where members prioritize reaching an agreement over having an accurate understanding of the situation. This can lead to poor decision-making.

A technique used to challenge groupthink by having a designated person take the opposing side of the proposed solution. This helps ensure the group considers all perspectives and avoids bias.

A method for improving group decision making by generating two opposing viewpoints, then evaluating the strengths and weaknesses of each. This helps ensure a more balanced and thorough analysis.

The tendency to make decisions based on existing beliefs, even when evidence shows these beliefs may be wrong.

The tendency to generalize from small samples or single vivid events, potentially leading to inaccurate judgments.

A process where organizations learn and improve by identifying and addressing their strengths and weaknesses to enhance their ability to manage the environment surrounding them.

Entrepreneurs are open to new experiences and willing to take risks. They believe they are in control of their success and have high self-esteem, pushing themselves to achieve their goals.

The ability to start and grow a business is not the same as running and managing a company. Often, entrepreneurs may need other skills or experiences for successful management.

A manager who is highly involved in a project, acting as a leader and champion to see it through from start to finish, driving it towards success.

A group of intrapreneurs who operate separately from the main company structure, focusing solely on developing new products.

A research and development division of Xerox, known for pioneering innovations like laser printing, personal computers, and graphical interfaces.

A style of interaction where users can see and manipulate text and images directly on a computer screen, leading to easier editing and design.