Chapter 11: Making strategic decisions

Question 1

What is information management?

Answer 1

Information management is the application of management techniques to collect information, communicate it within and outside the organisation, and process it to enable managers to make quicker and better decisions.

Question 2

Name the different types of approach to decision making and their values

Answer 2

• The Scientific Approach

- Hunch, or the Intuitive Approach

Question 3

What is the scientific approach?

Answer 3

The scientific approach focuses on scientific decision making. By using research this approach provides a logical and research based approach to decision making.

Question 4

What are the benefits of the scientific approach?

Answer 4

Provides a clear sense of direction
Decisions based on comparisons
Likely that more than one person will be involved in the process
Approach is flexible
Easier to defend policy developed on the basis of good planning.

Question 5

What is the Hunch/ Intuitive Approach?

Answer 5

The Intuitive approach to decision making, means decision are made on the basis of a gut feeling or the personal views of the manager.

Question 6

What are the benefits of Hunch/ Intuitive Approach?

Answer 6

Scientific approach very expensive
A scientific approach is time consuming
Data collected in a scientific approach to decision making
Invariably, scientific decisions based on past information

Question 7

Name the factors that influence the choice of scientific or hunch approach

Answer 7

Speed at which a decision needs to be made
Information available
Size of the business
Predictability of the situation

Question 8

Name the factors that influence decision making

Answer 8

Ethical Code
Resources
The relative power or stakeholders