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Flashcards in Intro Deck (16)
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1

What is business decision making?

A process of making choices which commit the origination to the attainment of long-range strategic objectives

2

What does business research do?

Helps generate viable alternatives for effective decision making and strategic choice

3

What are the decision types?

* Programmed decisions
* Non-programmed decisions

4

What are programmed decisions?

- Routine, not complex, not much thinking
- Lower/middle management
- No need for research

5

What are non-programmed decisions?

- Complex, require in depth consideration
- Middle/top management
- Research helps to make these

6

What is the structure of non-programmed decisions?

- Complex, unfamiliar, nonrecurring problems
- Uncertain of the cause/effect relationships and all the factors that impinge on the problem
- Incomplete information
- No clear solution and alternative

7

What are the different decision making strategies?

* Computational
* Compromise
* Judegemtnal
* Inspirational

8

What is a computational decision making strategy?

- Strong preference for the outcome
- High knowledge regarding the outcome

9

What is a compromise decision making strategy?

- Weak preference for the outcome
- High knowledge regarding the outcome

10

What is a judgemental decision making strategy?

- Strong preference for the outcome
- Low knowledge regarding the outcome

11

What is a inspirational decision making strategy?

- Weak preference for the outcome
- Low knowledge regarding the outcome

12

What is the difference between normative/descriptive?

- Normative
- Describe how decisions should and ought to be made
- They capture what should happen in decision making

- Descriptive
- What actually happens in decision making

13

What is the open decision model?

- Decision maker has an objective that is representative of their aspiration level and preferences
- Decision maker engages in search activity and defines a limited number of alternatives and outcomes
- A satisfactory solution is chosen based on analysis of expected utility of each alternative

14

When are managerial objectives most effective?

- Clear, specific and relevant to organisational objectives
- Challenging but attainable
- Realistic and practical
- Measurable

15

What is the overall process of the open business decision making model?

* Set managerial objectives
- Search for alternatives
* Compare and evaluate alternatives
* Act of choice
* Implement decisions
* Follow up and control

16

What is the optimal decision making strategy?

Computational - High knowledge of the outcome (necessities research), and strong preference for the outcome