Decision Making

Question 1

Characteristics of Decision Making

Answer 1

•requires good judgement and diagnostic skills
•ability to make good decisions
•the characteristics of decisions faced by most managers are varied in nature
•there is no doubt that a relatively simple decision in relation to reordering stationery supplies

Question 2

Define programmed decisions

Answer 2

These are well structured,routine and repetitive,occuring on a regular basis.
E.g an org ordering office supplies and calculating holiday pay

Question 3

Define non-programmed decisions

Answer 3

These are new and unstructured .
The organization has no established procedures or records for dealing with the decision.
An example is decision to try an unproven technology or to expand into a previously known market.

Question 4

List the three conditions under which Managers take decisions

Answer 4

•Certainty
•Risk
•Uncertainty

Question 5

What influences decision making?

Answer 5

Past experiences,present conditions and future expectations.

Question 6

List the steps in decision making

Answer 6

•Identify the problem and define it
•Develop objectives
•Seek the facts and identity the problem
•Develop a model
•Evaluate the alternatives
•Select the best alternative
•Implement the decision or plan a course of action

Question 7

List the stages of consumer decision making process

Answer 7

•problem solving
•Information search
•Alternatives evaluation
•Purchase decision
•Post-purchase evaluation

Question 8

List the approaches to Decision Making

Answer 8

•the rational model
•bounded rationality
•the political model
•escalation to commitment

Question 9

List the four conditions that are fulfilled in the concept of rationality

Answer 9

•there is perfect knowledge of all the available alternatives
•there is perfect knowledge of all the consequences of the available alternatives
•managers have the capacity to objectively evaluate the consequences of the available alternatives
•Managers have a well structures and definite set of procedures to allow them to make optimum decisions

Question 10

What do managers use in bounded rationality?

Answer 10

Intuition and judgement

Question 11

Describe the political model

Answer 11

Concentrates on the impact of organisational politics on decision making.
Considers the 5 main types of power

Question 12

Define escalation of commitment

Answer 12

The approach concentrates on why people continue to pursue a failing course of action.
Commiting to a failing decision

Question 13

List the four styles of decision making

Answer 13

•Analytical
•Directive
•Conceptual
•Behavioral

Question 14

List the advantages of group decision making

Answer 14

•greater pool of knowledge
•differrent perspectives
•greater comprehension
•increased acceptance
•training ground

Question 15

List the disadvantages of group decision making

Answer 15

•social pressure
•minority domination
•log rolling
•goal displacement
•groupthink