208 Decision-making models Flashcards
What is scientific decision making?
Scientific decision making involves the use of facts and data in a systematic way to arrive at a logical and evidence-based decision.
It can involve models such as decision trees, critical path analysis, and cost benefit analysis.
What is intuitive decision making?
Intuitive decision-making uses experience and intuition (gut feeling) to make a decision.
What are strategic decisions?
Strategic decisions are long term and affect the direction the business takes. They impact the entire business and are made by owners or senior management.
What are operational decisions?
Operational decisions are day-to-day decisions made in a business. They are lower level, short term, and have little risk.
What are tactical decisions?
Tactical decisions are short to medium term, less complex than strategic decisions, and usually carried out by middle management. They can be flexible and changed if failing to meet objectives.
What is a decision tree?
A decision tree is a mathematical model used to help managers make decisions by using estimates and probabilities to calculate likely outcomes.
It helps to decide whether the net gain from a decision is worthwhile.
What is critical path analysis?
Critical path analysis (CPA) is a method of planning and controlling large projects, used to make decisions on the management of resources and time.
It finds the cheapest and quickest way to complete a task.
What is cost benefit analysis?
Cost benefit analysis is a method of assessing the viability of a project based on analysis of all social costs and benefits involved.
This includes both private and external costs and benefits.
