The document outlines key concepts and steps related to decision making including: 1) The rational decision making model and its assumptions of rationality. 2) The limits of rationality and bounded rationality. 3) The two types of decision problems and two types of decisions. 4) Factors that influence decision making such as heuristics, decision styles, and group dynamics.

1. PART II: Planning 4

2. Learning Outcomes After this class, I will be able to:

12. Decision-making

13. Staple or Paper Clip? Book or Movie? Friend or Foe? Apple or Orange? Good or Evil? Healthy or Unhealthy? Work or Play? Attack or Defend? Transparent or Fake? Positive or Negative? Freedom or Confinement? Bible or Football? Computer or Compassion?

16. Decision-making

22. The Decision-Making Process Exhibit 4.2

23. Criteria and Weight in Car-Buying Decision (Scale of 1 to 10) CRITERION WEIGHT Price 10 Interior comfort 8 Durability 5 Repair record 5 Performance 3 Handling 1 Exhibit 4.3

24. Assessment of Car Alternatives Exhibit 4.4

25. Weighting of Vehicles (Assessment Criteria X Criteria Weight) Exhibit 4.5

28. Assumptions of Rationality Exhibit 4.6

30. Three Elements of Creativity Creativity The ability to produce novel and useful ideas Exhibit 4.7 Source: T. M. Amabile. “Motivating Creativity in Organizations,” Califormia Management Review (Fall 1997), p. 43. Copyright © 1997, by The Regents of the University of California. Reprinted by permission of the Regents.

36. Types of Problems, Types of Decisions, and Level in the Organization Exhibit 4.8

40. Decision-Making Styles Exhibit 4.9