MGT 300 1st Edition Lecture 8 Outline of Current Lecture II Rational III nonrational IV Evidence V Decision making style Current Lecture Rational Decision Making Successful Implementation Plan carefully Be sensitive to those affected Evaluation What should you do if action is not working Give it more time Change it slightly Try another alternative Start over Nonrational models of decision making o assume that decision making is nearly always uncertain and risky making it difficult for managers to make optimal decisions Bounded Rationality o suggests that the ability of decision makers to be rational is limited by numerous constraints o complexity time and money cognitive capacity NONRATIONAL Satisficing Model o managers seek alternatives until they find one that is satisfactory not optimal Incremental Model o managers take small short term steps to alleviate a problem Intuition o making a choice without the use of conscious thought or logical inference o sources are expertise and feelings These notes represent a detailed interpretation of the professor s lecture GradeBuddy is best used as a supplement to your own notes not as a substitute EVIDENCE BASED 1 2 3 4 5 6 7 Why it is hard There s too much evidence There s not enough good evidence The evidence doesn t quite apply People are trying to mislead you You are trying to mislead you The side effects outweigh the cure Stories are more persuasive anyway Decision Making Style Risk propensity o the willingness to gamble or to undertake risk for the possibility of gaining an increased payoff Decision making style o reflects the combination of how an individual perceives and responds to information o value orientation o tolerance for ambiguity Value orientation reflects the extent to which a person focuses on either task and technical concerns or people and social concerns when making decisions Tolerance for ambiguity extent to which a person has a high need for structure or control in his life Directive o people are efficient logical practical and systematic in their approach to solving problems o action oriented decisive and likes to focus on facts Analytical o considers more information and alternatives Conceptual o Takes a broad perspective to problem solving o likes to consider many options and future possibilities Behavioral o supportive receptive to suggestions show warmth o prefer verbal to written information