5. Decision Making Flashcards
Decision-making tools such as linear programming and queuing theory are used in conditions of …
Certainty
Decision-making tools such as probability analysis, payoff matrix, decision tree and break-even analysis are used in conditions of …
Risk & uncertainty
Decisions are … if they are seen as new or different and ill-structured.
Examples are organisations that decide for the first time, to merge with another organisation or enter a new niche market.
Non-programmed
Decisions are … when they are routine-like and repetitive.
Examples are buying stationary or procuring raw materials.
Programmed
Forming … to make a decision can enhance creativity and innovation.
Groups & Teams
The … technique is where creative or imaginative solutions and many ideas as
possible are informally generated
Brainstorming
The … technique is where it does not require physical presence of participants and makes use of a series of confidential questionnaires.
Delphi
The … technique is where it includes various kinds of computer-supported group decision-making systems.
Group-decision support
The … technique is where discussions are restricted during the decision-making process.
Nominal group
Managers need to attempt to solve most (1)… that arise because they are responsible for achieving the organisation’s goals. This can be achieved by applying a (2)… model.
(1) Problems
(2) Decision-making
Managers should use the bounded rational decision making model when dealing with …
Programmed, low-risk decisions
Setting goals and criterias and generating creative alternative courses of action of the decision-making process requires a substantial element of …
Creativity & Innovation
The core concept in problem-solving is (1)… , while the
core concept in decision-making is (2)…
(1) Taking corrective action
(2) Selecting an alternative course of action
The types of managerial decisions are either (1)… or (2)…
(1) Programmed
(2) Non-programmed
The … method combines the objective quantitative approach with some degree of subjectivity.
Kepner-Fourie
What are the two primary decision-making models that managers need to consider?
- Rational model
2. Bounded rational model
When decisions are made based on the first option that meets the minimum criteria it is known as the … model.
Bounded rationality
When the decision maker selects the best possible solution it is known as the … model.
Rational
When the rational model has been used it is often referred to as …
Optimising
Whether it is planning, leading, organising or control, … is central to all four of these functions. This is a fundamental part of the management process.
Decision making
… - Such decisions are made in conditions where the available options and the benefits or costs associated with each option are known in advance.
Conditions of certainty
… - Such decisions are made in conditions where the manager does not know the outcome of each alternative in advance, but can assign a probability to each outcome.
Conditions of risk
… - Such decisions are made in conditions where there is a lack of information. The outcome of each alternative is unpredictable and managers cannot determine probabilities.
Conditions of uncertainty
… analysis compares the costs and benefits of each alternative course of action using subjective intuition and judgement.
Cost-benefit
