MGT 205 Ch. 7 & 8

  1. Decision-Making
    The process by which managers respond to opportunities and threats by analyzing options and making determinations about specific organizational goals and on-going courses of action
  2. Heuristics
    Rules of thumb that simplify decision making (medication)
  3. Prior-Hypothesis Bias
    Use of strong prior beliefs among two variables
  4. Representativeness Bias
    Generalize from a small sample
  5. Illusion of control bias
    The tendency to overestimate one's own ability to control activities and events (tragic drinking stories)
  6. Escalating Commitment Bias
    Tendency to commit additional resources to a situation even though evidence shows that the project is failing (Challenger)
  7. Programmed decision making
    A routine, virtually automatic process that follows established rules or guidelines.
  8. Nonprogrammed decision making
    Required for those nonroutine decisions. Made in response to unusual or novel opportunities and threats
  9. Reasoned judgement
    A decision that takes time and effort to make utilizing conceptual, human and technical skills.
  10. Six steps in nonprogrammed decision making
    • 1. Recognize the need for a decision
    • 2. Generate alternatives
    • 3. Assess alternatives
    • 4. Choose among alternatives
    • 5. Implement chosen alternative
    • 6. Learn from feedback
  11. LEEP
    Evaluate alternatives: Legal? Ethical? Economically feasible? Practical?
  12. Group decision making
    The process of drawing upon the combined skills (conceptual, human, and technical) competencies, and accumulated knowledge of group members and thereby improve the ability to generate feasible alternatives and make good decisions
  13. Groupthink
    A pattern of faulty and biased decision-making that occurs in groups whose members strive for agreement among themselves at the expense of accurately assessing information relevant to a decision
  14. Entrepreneurship
    Noticing an opportunity to satisfy a customer need and then deciding how to find and use resources to provide a product/service that satisfies the need
  15. Intrapreneurship
    The establishment inside of an organization of a learning environment encouraging employees to identify opportunities, solve problems, and provide customers with new and improved goods/services
  16. High Performance Planning
    An essential managerial task and process that managers use to identify and select appropriate goals (big picture) and courses of action (ongoing picture) for the organization
  17. Management
    The planning, organizing, leading and controlling of human and other resources to achieve organizational goals efficiently and effectively.
  18. Planning
    Choosing appropriate organizational goals and courses of action to achieve these goals
  19. Strategy
    A cluster of decisions about what goals to pursue (big picture and smaller picture) what actions to take, and how to use resources to achieve goals
  20. Long-term
    Five years or more, corporate level plans
  21. Intermediate
    1-5 years, business level plans
  22. Short-term
    One year or less, functional plans
  23. SWOT Anallysis
    A planning exercise to identify strengths(S) and weaknesses(W) inside an organization and opportunities(O) and threats(T) in the environment
  24. Michael Porter's Strategies to Gain Competitive Advantage
    • 1. Low Cost
    • 2. Differentiation strategy
    • 3. Focused low-cost strategy
    • 4. Focused differentiation strategy
Card Set
MGT 205 Ch. 7 & 8
Management Chapter 7 & 8 Vocabulary