management 6-7

decision

a chioce from two or more alternatives

problem

an obstacle that makes achieving a desiered goal or purpose difficult

decision criteria

criteria that define what's important or relevant in resolving a problem

decision making process

identify the problemidentify decision criteriaallocate weights to the criteriadevelop alternativesanalyis alternativesselc an alternativeimplement alternativeevaluate decission effectivenes

rational decision making

a type of decision making in which the choices are logical and consistent and maximize value

bounded rationality

decision makeing that is rational but limitedby an individuals ability to process information

satisfice

to accept solutions that are good enough

escalation of commitment

an increassed commitment to a previous decision despice the evidence that it may have been a poor decision

intutitive decision making

making decisions on the baisis of experience, feelings, and accumulated judgment

structured problem

a streightforward, familiar, and easlily defined problem

programmed decision

the repetitive decision that can be handled using a routine approach

procedure

a series of sequential steps used to respond to a well-structured problem

rule

an explicit statement that tell managers what can or can not be done

policy

a guide line for making decisions

unstructured problem

a problem that is new or unusuall and for which information is ambiguous or incomplet

nonprogramed decision

a uniq

nonprogrammed decision

a unique nonreocurring decision that requires a custom made solution

certainty

a situation in which a decision maker can make accurate decisions because all outcomes are known

risk

a situation in which the decision maker is able to estimate the likelihood of a certain outcome

uncertainty

a situation in which the desion maker has neither certainty nor resonable probability estimates available

business performance managemnt BPM software

IT sofware that provides key performance indicators to help managers monitor efficiency of projects and employees. Also known as corporate performance managemnt software

linear thinking style

a decision style characterized by a persons preference for using external data and facts and processing this information through rational, logical thinking

nonlinear thinking style

a decision style characterized by a person's prefernce for internal sources of information and processing this infomation with internal insights, feelings, and hunches

heuristics

rules of thumbs that managers use to simplify decision making

planning

defining an organizations goal, establishing as strategy to achieve those goals, and developing plans to intergrate and coordinate work activities

goals/ objectives

desiered outcomes or target

plans

documents that outline how goals are going to be meet

stated goals

official statement of what an organization says, and what it whants its various stakeholders to believe its goals are

real goals

goals that an organization actually persues, as defined by the actions of its memebers

strategic plans

plans that apply to an entire organization and establish the organizations overall goals

operational plans

plans that encompas a partecular operational are of an organization

long-term plans

plans with a time frame beyond 3 years

short-term planns

plans covering 1 year or less

specific plans

plans that clearly define and leave no room for interpretation

directional plans

plans that are flexible and that set out general guidelines

single use plans

a 1 time plan specifically designed to meet the needs of a unique situation

standing plans

ongoing palns that provide guidance for activities perfomed repeatedly

traditional goal setting

an approach to setting goals in which top managers set goals that flow down through the organization and become sub goals for each organizational area

means-ends chain

an integrated network of goals in which the accomplishment of goals at one level serves as the means for acheiving the goals, or ends at the next level

management by objectives MBO

a process of setting mutually agreed upon goals and using those goals to evaluate employee perfomance

mission

a statement of the purpose of an organization

commitment concept

a concept which says that plans should extend far enough to meet the commitments made when the plans were developed

formal planning department

a group of planning specialists whose sole responsability is helping to write organizational plans