MGT 033 Ch 2 Flashcards
(27 cards)
There are choices made by an organization’s managers to govern daily activities and internal processes. These are also focused on completing tasks and solving immediate problems.
Operational decision
This actor of Operational Decision is responsible for the overall vision of the organization. She makes strategic decisions that affect the entire company.
General management
These actor of Operational Decision are responsible for implementing strategic decisions at the operational level. They supervise daily activities, set goals, and make decisions to achieve those goals.
Operational managers
These actor of Operational Decision are the Departments such as human resources, finance, and IT provide essential information and services to support operations.
Support services
These are the characteristics of what?
-The significant or long lasting decisions,
-The time availability and the cost of analysis, and
-The degree of complexity of the decision.
CHARACTERISTICS OF DECISIONS
These actor of Operational Decision are all the people who carry out daily operational tasks. Their experience and expertise are essential in providing valuable information for decision-making
Field employees
What are the roles of Operational Managers?
Planning
Implementation
Monitoring and controlling
Communication
This framework for decision making is relatively objective in an analytical decision process because the criteria for evaluating the alternatives have been precisely defined. The best alternative is the one that most closely satisfies the criteria.
EVALUATION OF THE ALTERNATIVES
What are the operational decision making process?
- Identify the problem or decision to be made
- Collect relevant data
- Analyzing available options and decision making
- Implement the chosen plan
- Evaluate results
This framework for decision making enables to identify the relevant variables and the cause of the problem.
DEFINING THE PROBLEM
This framework for decision making is important because the criterion reflects the goals and purpose of the work efforts.
ESTABLISH THE DECISION CRITERIA
This framework for decision making lies at the heart of the scientific decision-making process. Model describes the essence of a problem or relationship by abstracting relevant variables from the real world situation. Also used to simplify or approximate reality, so the relationships can be expressed in tangible form and studied in isolation.
FORMULATION OF A MODEL
This framework for decision making is wherein alternatives are generated by varying the values of the parameters. Mathematical and statistical models are particularly suitable for generating alternatives because they can be easily modified.
GENERATING ALTERNATIVES
In this decision methodology all relevant information about the decision variables and outcomes is known or assumed to be known
Complete Certainty Methods
What do these represent in a Decision Tree?
Square Nodes
Circular Nodes
Branches leaving square nodes
Branches leaving circular nodes
Square nodes denote decision points
Circular nodes denote chance events.
Branches leaving square nodes represent alternatives;
Branches leaving circular nodes represent chance events
In this decision methodology information about the decision variables or the outcomes is probabilistic
Risk and Uncertainty Methods
These are essential for completing the managerial action.
IMPLEMENTATION AND MONITORING
This is a schematic representation of the alternatives available to a decision maker and their possible consequences. The term gets its name from the tree like appearance of the diagram, and is composed of a number of nodes that have branches emanating from them
DECISION TREE
This type of probability are based upon equally likely outcomes that can be calculated prior to an event on the basis of mathematical logic.
Classical probabilities
In this decision methodology no information is available to assess the likelihood of alternative outcomes.
Extreme Uncertainty Methods
This is an economic model describing cost-price-volume relationships
Break-even Analysis
(Relationship between costs and activity level (AL) is also assumed to be linear.)
This is a computer-based systems designed to aid decision-makers of any stage of the decision process in the development of alternatives and evaluation of possible course of action
Their purpose is to provide the information and analytical support that enables managers to better control and guide the decision process. Emphasis is given for giving useful information and appropriate quantitative models that support the manager’s skills.
DECISION SUPPORT SYSTEM
This type of probability are based upon observed data and express the relative frequency of an event in the long run.
Empirical probabilities
This type of probability are based upon personal experience or judgment and are sometimes used to analyze one-time occurrences.
Subjective probabilities
