Chapter 4 - Decision Making

Question 1

Identify A problem

Answer 1

1st step in decision making process.

A discrepancy between an existing and a desired state of affairs

Question 2

Identify decision criteria

Answer 2

2nd step in decision making

What is relevant in making a decision? What is your objective?

Question 3

Allocate weights of criteria

Answer 3

3rd step in decision making

Which decision criteria is most important. Give them “weights” to show most important to least.

Question 4

Develop alternatives

Answer 4

4th step in decision making process

Create viable alternatives that could resolve the problem

Question 5

Analyze alternatives

Answer 5

5th step in decision making

Compare each alternative to decision making criteria.

Question 6

Select alternative

Answer 6

6th step in decision making process

After comparing alternatives to decision criteria, choose best solution based on score.

Question 7

Implement alternative

Answer 7

7th step to decision making
Put decision into action. Make sure those who are affected by it are also committed to it.
Successful implementation requires participation from people other than the managers

Question 8

Evaluate decision criteria

Answer 8

8th (final) step in decision making
We’re the criteria used to weigh alternatives effective? Did the alternative fix the problem? If not, what went wrong and how can you fix it?

Question 9

Directive style

Answer 9

A decision making style

• Low tolerance for ambiguity
• Rational way of thinking
• efficient and logical
• fast decisions on short run (task oriented)

Decisions are made with minimal information and assessment of few alternatives due to speed.

Question 10

Analytic Style

Answer 10

Decision making style

• greater tolerance for ambiguity
• task oriented
• require more information before making a decision
• consider many alternatives

Careful decision makers with the ability to adapt or cope with unusual situations

Question 11

Conceptual style

Answer 11

Decision making style

• broad outlook with many alternatives
• intuitive
• long term focus
• good at finding creative solutions to problems
• adaptive and flexible
• people oriented
• high ambiguity tolerance

Question 12

Behavioural style

Answer 12

Decision making style

• low tolerance for ambiguity (structured)
• people oriented way of thinking
• intuitive
• sociable, friendly, supportive

Question 13

Overconfidence bias

Answer 13

Decision makers think they know more than they do or hold unrealistically positive views of themselves and their performance.

Question 14

Escalation-of-commitment bias

Answer 14

Increased commitment to a previous decision despite evidence that the decision might have been wrong

Question 15

Self serving bias

Answer 15

Decision makers take credit for their successes and blame failure on outside factors.

Question 16

Hindsight bias

Answer 16

Decision makers falsely believe that they would have accurately predicted the outcome of an event once that outcome is actually known

Question 17

Obstructionist approach

Answer 17

An approach to corporate social responsibility

Disregard for social responsibility

Question 18

Defensive approach

Answer 18

An approach to corporate social responsibility

Minimal commitment to social responsibility

Question 19

Accommodative approach

Answer 19

An approach to corporate social responsibility

Moderate commitment to social responsibility

Question 20

Proactive approach

Answer 20

An approach to corporate social responsibility

Strong commitment to social responsibility