¶ … decision making best exemplifies what happened on the Deepwater Horizon rig?
The basic model that was used in the Deepwater Horizon accident was the bounded rational decision making approach. This is when everyone inside the organization will be focused on selecting options that work well within their current circumstances. The problem is that these individuals are not selecting an approach, which is in the best interests of everyone. Instead, there is an obsession in meeting short-term objectives at all costs. In the case of the Deepwater Horizon, everyone was ignoring obvious signs that the well was about to explode. The biggest reason why is managers were focused on meeting the productivity goals of the company at all costs. ("What are Rational Models," 2012)
Which of the decision- making biases played a potential role in the disaster?
The kind of decision making biases that were occurring prior the Deepwater Horizon incident were: a lack of focus on safety issues and a mindset concerned about increasing profit margins. The...
Business Decision-Making Process Decision-making through Business Environmental Scanning As a relatively new research agency in the market research industry, our firm has two main objectives for this year. The first objective is to increase profitability through increased number and/or higher research costs. The second objective, meanwhile, is to increase the firm's "visibility" in the market research industry, and be recognized as one of the major players in it. In order to achieve
00 income if Mr. Pecos accepted the committed sale made by his Office Assistant Manager. Prepare a contribution margin income statement for the month Based on Mr. Peco's Decision Recommended Sales 286,500.00* 578,000.00** Variable Cost 245 per unit) 925*245-226,625.00) 471,625.00) Fixed Cost Income Computed as follows: of units Selling Price Accepted Orders by Sam Smooth talk Accepted Orders by Harry Hustler Accepted Orders by Garry Giftofgab Total Selling Price 286,500.00* Computed as follows of units Selling Price Recommended orders to accept: Total amount of accepted order Total Selling Price 203000+286,500 578,000.00** Assumption that $475,000 fixed cost is
Behavioral Economics Many academics advocate that markets are "efficient." They argue that all stock and business information is embedded in the current price of an asset. As new information enters the market, the asset price immediately adjusts to reflect the new market sentiment. As a result of these efficient markets, investors can only hope to achieve the market rate of return given the amount of risk taken. There is very little
By knowing how to read visual presentations of data, the manager will be able to spot the central tendencies and distributions found in data in order to correctly asses whether a given decision is likely to reach the biggest part of the market or cut the highest percentage of inefficiency. Second, the manager must understand what central tendency and variability mean. Specifically, these are simply measures showing where the data
Decision Making Mind Map Concept Decision Making Decision making is a process of identifying and choosing the best option among all the available alternatives in a given situation. The purpose of making decision in a particular context is to select an option that can bring the most desirable outcomes for the decision maker or for the people or groups that have a stake in those outcomes (Hardman, 2009). A decision can be
Decision-Making Process in Business Environment The activity of decision-making may be defined as mental processes leading to the choosing of one alternative out of many. All decision-making processes generate an ultimate choice. Decision-making output may be a chosen view or action. Broadly, decision-making represents a process of choosing between numerous alternatives and making a commitment to adopting some particular option for the future (Masood). The Nature of Decision-Making Successful decision-making, realizing where one has made the
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