5. Decision Making

Question 1

Decision-making tools such as linear programming and queuing theory are used in conditions of …

Answer 1

Certainty

Question 2

Decision-making tools such as probability analysis, payoff matrix, decision tree and break-even analysis are used in conditions of …

Answer 2

Risk & uncertainty

Question 3

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.

Answer 3

Non-programmed

Question 4

Decisions are … when they are routine-like and repetitive.

Examples are buying stationary or procuring raw materials.

Answer 4

Programmed

Question 5

Forming … to make a decision can enhance creativity and innovation.

Answer 5

Groups & Teams

Question 6

The … technique is where creative or imaginative solutions and many ideas as
possible are informally generated

Answer 6

Brainstorming

Question 7

The … technique is where it does not require physical presence of participants and makes use of a series of confidential questionnaires.

Answer 7

Delphi

Question 8

The … technique is where it includes various kinds of computer-supported group decision-making systems.

Answer 8

Group-decision support

Question 9

The … technique is where discussions are restricted during the decision-making process.

Answer 9

Nominal group

Question 10

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.

Answer 10

(1) Problems

(2) Decision-making

Question 11

Managers should use the bounded rational decision making model when dealing with …

Answer 11

Programmed, low-risk decisions

Question 12

Setting goals and criterias and generating creative alternative courses of action of the decision-making process requires a substantial element of …

Answer 12

Creativity & Innovation

Question 13

The core concept in problem-solving is (1)… , while the

core concept in decision-making is (2)…

Answer 13

(1) Taking corrective action

(2) Selecting an alternative course of action

Question 14

The types of managerial decisions are either (1)… or (2)…

Answer 14

(1) Programmed

(2) Non-programmed

Question 15

The … method combines the objective quantitative approach with some degree of subjectivity.

Answer 15

Kepner-Fourie

Question 16

What are the two primary decision-making models that managers need to consider?

Answer 16

1. Rational model

2. Bounded rational model

Question 17

When decisions are made based on the first option that meets the minimum criteria it is known as the … model.

Answer 17

Bounded rationality

Question 18

When the decision maker selects the best possible solution it is known as the … model.

Answer 18

Rational

Question 19

When the rational model has been used it is often referred to as …

Answer 19

Optimising

Question 20

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.

Answer 20

Decision making

Question 21

… - Such decisions are made in conditions where the available options and the benefits or costs associated with each option are known in advance.

Answer 21

Conditions of certainty

Question 22

… - 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.

Answer 22

Conditions of risk

Question 23

… - 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.

Answer 23

Conditions of uncertainty

Question 24

… analysis compares the costs and benefits of each alternative course of action using subjective intuition and judgement.

Answer 24

Cost-benefit