approaches to decision making

Question 1

what is scientific decision making

Answer 1

the use of formal procedure to ensure that decisions are reached in an objective manner. it attempts to eliminate hunch or bias by ensuring that decisions are based on factual numerical evidence

Question 2

what are the advantages of scientific decision making

Answer 2

use of numerical evidence should reduce the risk of failure

less danger of bad decisions being forced through by strong personalities

Question 3

disadvantages of scientific decision making

Answer 3

can be slower and more expensive than intuitive decisions

may not be suitable for innovative new products where data cannot be obtained

Question 4

what is intuition

Answer 4

means basing decisions on gut feeling or personal opinions, without carrying out detailed research

Question 5

what are the advantages of intuition

Answer 5

quicker and cheaper than scientific decision making

more suitable for innovative new products where data can’t be obtained

Question 6

what are the disadvantages of intuition

Answer 6

lack of numerical evidence may increase the risk of failure

more danger of bad decisions being forced through by strong personalities

Question 7

what are the 4 influences on decision making

Answer 7

the mission and objectives of a business
the external environment
resource constraints
ethical considerations

Question 8

what are the advantages of ethical behaviour

Answer 8

attracts customers
attracts employees
attracts shareholders
environmental policy’s can decrease costs

Question 9

disadvantages of ethical behaviour

Answer 9

can increase costs
decrease profits
lower profits are unattractive to shareholders
initial cost of environmentally friendly equipment and vehicles can damage cash flow