Chapter 5: Decision Making

Question 0

Decision making is a process of

Answer 0

Identifying problems
Opportunities
And then resolving them

Question 1

Decision making is

Answer 1

Making a choice

Among available alternatives

Question 2

Goods decisions are the heart of

Answer 2

Good management

Question 3

Decisions determine how an organisation

Answer 3

Solves its problems
Allocates its resources
Accomplished its objectives

Question 4

Management is synonymous with

Answer 4

Decision making

Question 5

What stages of management involve decision making?

Answer 5

All POLC

Question 6

The types of decisions are made

Answer 6

Programmed

Non programmed

Question 7

Programmed decisions are

Answer 7

Routine
Simple
Made to tackle frequently recurring problems and opportunities

Question 8

Programmed decision involve situations

Answer 8

That have occurred often enough
To enable a definitive approach to be developed
And applied in the future

Question 9

Decision rules are

Answer 9

Procedures

Question 10

Managers formulate procedures so

Answer 10

Subordinates can make the decision

They are freed to do important tasks

Question 11

Programmed decision is done on the

Answer 11

First-line level

Question 12

Non programmed decisions are

Answer 12

Unique

No cut and dried method for handling the problem

Question 13

Non programmed decisions need a

Answer 13

Customs tailored treatment

Question 14

Conditions under which decisions are made differ in

Answer 14

Degree of certainty

Question 15

The certainty of decision making is based on

Answer 15

Availability of information
Possibility of failure / outcome (based on info and alternatives)
Clarity of goals

Question 16

The 4 possible situations of decision making are

Answer 16

Certainty
Risk
Uncertainty
Ambiguity

Question 17

In certainty,

Answer 17

All information is fully available

The outcome from every alternative is known

Question 18

In risk,

Answer 18

Decision making has clear cut goals
Good information is available. Enough to estimate probability of success
Future outcomes associated with each alternative are subject to chance of loss or failure

Question 19

In uncertainty,

Answer 19

Managers know which objective they want to achieve
Information about alternatives is incomplete
Future events is based on the creativity of managers

Question 20

In ambiguity,

Answer 20

Goals to be achieved are unclear
Alternatives are difficult to define
Information about outcomes is unavailable

Question 21

The steps in decision making are

Answer 21

Recognition of decision requirement
Diagnosis and analysis of causes
Development of alternatives 
Selection of desired alternatives 
Implementation of chosen alternative 
Evaluation and feedback

Question 22

Managers confront a decision requirement when

Answer 22

There is either a problem or opportunity

Question 23

Awareness of a problem or opportunity requires a

Answer 23

Scan of internal and external environment

Question 24

Information about a problem or opportunity can come from

Answer 24

Performance reports | Financial reports

Question 25

Managers identify the cause of

Answer 25

Problem and opportunity

Question 26

The analyze the situation more deeply by asking

Answer 26

5W | 1H

Question 27

Alternative solutions are developed to

Answer 27

Respond to needs of the situation | Correct causes

Question 28

Managers select the alternative that best meets his

Answer 28

Decision criteria

Question 29

The decision criteria has to fit

Answer 29

Overall goals and values of the organisation | Achieve the desired results

Question 30

The success of chosen alternative depends on

Answer 30

Whether it is translated to action

Question 31

Managers gather information to answer

Answer 31

How well was decision implemented | Was decision effective in achieving its objective

Question 32

What are the decision biases?

Answer 32

``` Being influenced by initial impressions Justifying past decisions Seeing what you want to see Perpetuating the status quo Being influenced by problem framing Overconfidence ```

Question 33

How are people influenced by initial impressions?

Answer 33

Too much weight given to first information received | First impressions act as anchors to subsequent judgement

Question 34

Justifying past decisions creates danger of

Answer 34

Decision escalation

Question 35

Past decisions can be

Answer 35

No longer valid

Question 36

Seeing what you want to see is

Answer 36

Selective perception

Question 37

In selective perception,

Answer 37

People are biased towards information that supports their POV, existing instincts Avoid information that contradicts

Question 38

Perpetuating the status quo involves

Answer 38

Used what works in the past as the basis

Question 39

Perpetuating status quo leads to failure to

Answer 39

Explore new options Search for additional information Investigate new technologies

Question 40

Problem framing is

Answer 40

How we define the problem. It could be wrong

Question 41

Overconfidence is

Answer 41

Overestimating of abilities to predict and understand risk

Question 42

decisions can be made individually or

Answer 42

In groups

Question 44

The advantages of group decision making are

Answer 44

Broader perspective More alternatives can be evaluated Reduces uncertainty about alternatives Provides member support for decision

Question 45

Broader perspective is provided for

Answer 45

Defining the problem | Diagnosing underlying causes and effects

Question 46

More alternatives can be evaluated through

Answer 46

Groups offering more knowledge and facts Identify potential solutions Produce more decision alternatives

Question 47

There is greater memeber support because

Answer 47

People who participate will be more satisfied with decision | And likely to support It

Question 48

The disadvantages of group decision making are

Answer 48

``` Time consuming Wasted resources if used for programmed decisions Compromise decisions may satisfy no one Groupthink No focus for decision responsibility ```

Question 49

Group decision making is time consuming because

Answer 49

People must be consulted Jointly diagnose problems Discuss solutions

Question 50

Compromise decisions are

Answer 50

Less than optimal for organisation

Question 51

Groupthink is a

Answer 51

Mode of thinking people engage in When in a cohesive group Not able to realistically appraise alternative courses of action

Question 52

There is no focus for decision responsibility as well

Answer 52

The group makes a decision instead of an individual

Question 53

Uncertainty is reduced about alternatives through

Answer 53

Group discussion