MGT 300 1st Edition Lecture 8Outline of Current Lecture II. RationalIII. nonrationalIV. EvidenceV. Decision making styleCurrent LectureRational 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 constraintso complexity, time and money, cognitive capacityNONRATIONALSatisficing 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 - Intuitiono making a choice without the use of conscious thought or logical inferenceo sources are expertise and feelingsThese 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 BASEDWhy it is hard…1. There’s too much evidence.2. There’s not enough good evidence.3. The evidence doesn’t quite apply.4. People are trying to mislead you.5. You are trying to mislead you.6. The side effects outweigh the cure.7. Stories are more persuasive anyway.Decision Making Style- Risk propensityo 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 informationo value orientationo 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- Directiveo 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- Conceptualo Takes a broad perspective to problem solving o likes to consider many options and future possibilities- Behavioralo supportive, receptive to suggestions, show warmth o prefer verbal to written