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MGT 300 EXAM 2
Decision making✔✔the process by which managers respond to opportunities and threats by analyzing options and making determinations about specific organizational goals and course of action. The essence of management.
Programmed decision making✔✔Routine, virtually automatic decision making that follows established rules or guidelines.
Non programmed decision making✔✔non-routine decision making that occurs in response to unusual, unpredictable opportunities and threats.
Intuition✔✔feelings, beliefs, and hunches that come readily to mind and require little effort and info gathering and result in on-the-spot decisions.
Reasoned judgment✔✔A decision that requires time and effort and results from careful information gathering, generation of alternatives, and evaluation of alternatives.
Optimum decision✔✔The most appropriate decision in light of what managers believe to be the most desirable future consequences for the organization.
Administrative model✔✔An approach to decision making that explains why decision making is inherently uncertain and risky and why managers usually make satisfactory rather than optimum decisions. Based on: bounded rationality, incomplete information, satisficing.
Bounded rationality✔✔Cognitive limitations that constrain one's ability to interpret, process, and act on information.
Risk✔✔The degree of probability that the possible outcomes of a particular course of action will occur.
Uncertainty✔✔unpredictability
Ambiguous information✔✔Information that can be interpreted in multiple and often conflicting ways.
Satisficing✔✔Searching for and choosing an acceptable, or satisfactory, response to problems and opportunities, rather than trying to make the best decision.
Heuristics✔✔rules of thumb that simplify a problem, allowing one to solve problems quickly and easily.
Systematic errors✔✔Errors that people make over and over and that result in poor decision making
Prior-hypothesis bias✔✔A cognitive bias resulting from the tendency to base decisions on strong prior beliefs even if evidence shows that those beliefs are wrong.
Representative bias✔✔a cognitive bias resulting from the tendency to generalize inappropriately from a small sample or from a single vivid event or episode.
Illusion of control✔✔A source of cognitive bias resulting from the tendency to overestimate one's own ability to control activities and events.
Escalating commitment✔✔continuing to invest time and resources in a failing decision
Groupthink✔✔tendency for group members to think alike with certainty of correctness, biased perceptions of outgroup members, and generally defective decision-making processes
Dialectical inquiry✔✔critical analysis of two preferred alternatives in order to find an even better alternative for the organization to adopt
Organizational learning✔✔The process through which managers seek to improve employees' desire and ability to understand and manage the organization and its task environment.
Learning organization✔✔An organization in which managers try to maximize the ability of individuals and groups to think and behave creatively and thus maximize the potential for organizational learning to take place.
Creativity✔✔A decision maker's ability to discover original and novel ideas that lead to feasible alternative courses of action.
Production blocking✔✔A loss of productivity in brainstorming sessions due to the unstructured nature of brainstorming.
Nominal group technique✔✔A decision-making technique in which group members write down ideas and solutions, read their suggestions to the whole group, and discuss and then rank the alternatives.
Delphi technique✔✔A decision-making technique in which group members do not meet face-to- face but respond in writing to questions posed by the group leader.
Hypercompetition✔✔Permanent, ongoing, intense competition brought about in an industry by advancing technology or changing customer tastes.
Low-cost strategy✔✔Driving the organization's costs down below the costs of its rivals.
Vertical integration✔✔Expanding a company's operations either backward into an industry that produces inputs for its products or forward into an industry that uses, distributes, or sells its products.
Diversification✔✔Expanding a company's business operations into a new industry in order to produce new kinds of valuable goods or services.
Synergy✔✔Performance gains that result when individuals and departments coordinate their actions.
Global strategy✔✔selling the same standardized product and using the same basic marketing approach in each national market
Multidomestic strategy✔✔customizing products and marketing strategies to specific national conditions
Organizational architecture✔✔The organizational structure, control systems, culture, and human resource management systems that together determine how efficiently and effectively organizational resources are used.
Job simplification✔✔The process of reducing the number of tasks that each worker performs
Job enlargement✔✔increasing the number of different tasks that a worker performs within one particular job
Job enrichment✔✔Increasing the degree of responsibility a worker has over his or her job.
Market structure✔✔An organizational structure in which each kind of customer is served by a self-contained division; also called customer structure.
Matrix structure✔✔An organizational structure that simultaneously groups people and resources by function and by product.
Authority✔✔the power to hold people accountable for their actions and to make decisions concerning the use of organizational resources
Hierarchy of authority✔✔An organization's chain of command, specifying the relative authority of each manager
Span of control✔✔The number of subordinates who report directly to a manager
Decentralizing authority✔✔Giving lower-level managers and nonmanagerial employees the right to make important decisions about how to use organizational resources.
Task force✔✔a temporary group of employees responsible for bringing about a particular change
Organizational culture✔✔the shared values, principles, traditions, and ways of doing things that influence the way organizational members act.
Control systems✔✔Formal target-setting, monitoring, evaluation, and feedback systems that provide managers with information about how well the organization's strategy and structure are working.
Feedforward control✔✔control that allows managers to anticipate problems before they arise
Feedback control✔✔Control that gives managers information about customers' reactions to goods and services so that corrective action can be taken if necessary.
Management by objectives✔✔A goal-setting process in which a manager and each of his or her subordinates negotiate specific goals and objectives for the subordinate to achive and then periodically evaluate the extent to which the subordinate is achieving those goals
Bureaucratic control✔✔Control of behavior by means of a comprehensive system of rules and standard operating procedures.
Clan control✔✔The control exerted on individuals and groups in an organization by shared values, norms, standards of behavior, and expectations.
Organizational change✔✔The movement of an organization away form its present state and toward some desired future state to increase its efficiency and effectiveness.
Evolutionary change✔✔change that is gradual, incremental, and narrowly focused
Revolutionary change✔✔change that is rapid, dramatic, and broadly focused
