Mgt 301 Ch 7

The process of identifying and choosing alternative courses of action (202)

The willingness to gamble or to undertake risk for the possibility of gaining and increased pay off (202) [competitiveness]

Reflects the combination of how an individual perceives and responds to information (203)

1. directive: low tolerance for ambiguity and are oriented toward task and technical concerns in making decisions. -they are efficent, logical, practical, and systematic to problem solving.-focus on facts and shortrun2. Analytical: Higher tolerance for ambiguity and is characterized by the tendency to overanalyze a situation.-consider more information and alternatives than managers following the direct style.-careful but take longer to make decisions but respond well to new or uncertain situations.3.Conceptual: high tolerance for ambiguity and focus on people 4. behavioral: most people oriented. -supportive, receptive to suggestions, prefer verbal communicaiton.-avoid conflicts, hard time saying no.(204)

Stage 1: identify the problem or opportunityStage 2: think up alternative solutions
Stage 3: Evaluate alternatives and select a solution

Difficulties that inhibit the achievement of goals (205)

Situations that present possibilities for exceeding existing goals.

Analyzing the underlying causes

Describing how managers ought to make decisions (208)

Explain how managers make decisions; they assume that decision making is nearly always uncertain and risky, making it difficult for managers to make optimal decisions.

The ability of decision makers to be rational is limited by numerous constraints, complexity, time, money, cognitive capacity, values, skills, habits, unconscious reflexes

Managers take small, short-term steps to alleviate a problem, rather than steps that will accomplish a long-term solution.

Making a choice without the use of conscious thought or logical interference

Seven principals (213)

Term used for sophisticated forms of business data analysis.