Chapter 5 - Decision making, learning, creativity, and entrepreneurship. The learning objectives for this chapter include: Understand the nature of managerial decision making, differentiate between programmed and nonprogrammed decisions, and explain why nonprogrammed decision making is a complex, uncertain process; describe the six steps that managers should take to make the best decisions, and explain how cognitive biases can lead managers to make poor decisions;. | Decision Making, Learning, Creativity, and Entrepreneurship Chapter Five Learning Objectives LO5-1 Understand the nature of managerial decision making, differentiate between programmed and nonprogrammed decisions, and explain why nonprogrammed decision making is a complex, uncertain process. LO5-2 Describe the six steps that managers should take to make the best decisions, and explain how cognitive biases can lead managers to make poor decisions. LO5-3 Identify the advantages and disadvantages of group decision making, and describe techniques that can improve it Learning Objectives LO5-4 Explain the role that organizational learning and creativity play in helping managers to improve their decisions. LO5-5 Describe how managers can encourage and promote entrepreneurship to create a learning organization, and differentiate between entrepreneurs and intrapreneurs The Nature of Managerial Decision Making Decision Making The process by which managers respond to opportunities and threats by analyzing options, and making determinations about specific organizational goals and courses of action 4 Decisions in response to opportunities—occurs when managers respond to ways to improve organizational performance. Decisions in response to threats—occurs when managers are impacted by adverse events to the organization. Decision Making Intuition feelings, beliefs, and hunches that come readily to mind, require little effort and information gathering and result in on-the-spot decisions Reasoned judgment decisions that take time and effort to make and result from careful information gathering, generation of alternatives, and evaluation of alternatives The Classical Model Classical Model of Decision Making A prescriptive model of decision making that assumes the decision maker can identify and evaluate all possible alternatives and their consequences and rationally choose the most appropriate course of action 6 Optimum decision The most appropriate decision in light of what managers | Decision Making, Learning, Creativity, and Entrepreneurship Chapter Five Learning Objectives LO5-1 Understand the nature of managerial decision making, differentiate between programmed and nonprogrammed decisions, and explain why nonprogrammed decision making is a complex, uncertain process. LO5-2 Describe the six steps that managers should take to make the best decisions, and explain how cognitive biases can lead managers to make poor decisions. LO5-3 Identify the advantages and disadvantages of group decision making, and describe techniques that can improve it Learning Objectives LO5-4 Explain the role that organizational learning and creativity play in helping managers to improve their decisions. LO5-5 Describe how managers can encourage and promote entrepreneurship to create a learning organization, and differentiate between entrepreneurs and intrapreneurs The Nature of Managerial Decision Making Decision Making The process by which managers respond to opportunities and threats by
