Chapter 13 Decision Making

Question 0

What are the classifications of levels decisions occur

Answer 0

Strategic- setting the course of the organization

Tactical decisions- how things will get done

Operational decisions- decisions made each day to make the organization run

Question 1

Two types of decisions

Answer 1

Programmed decisions- frequent to the point of having an automated response

Nonprogrammed decisions- unique and important that requires careful consideration of alternatives

Question 2

List the decision making approaches

Answer 2

Rational decision making model

Bounded rationality model- recognizing limitations of our decision

Intuitive decision making- coming to decision without conscious reasoning

Creativity

Question 3

8 steps in rational-decision making

Answer 3

1. Identify the problem
2. Establish decision criteria
3. Weigh decision criteria
4. Generate alternatives
5. Evaluate alternatives
6. Choose the best alternative
7. Implement the decision
8. Evaluate the decision

Question 4

The creative decision making process

Answer 4

1. Problem recognition
2. Immersion
3. Incubation
4. Illumination
5. Verification and application

Question 5

List the factors that evaluate the level of creativity

Answer 5

Fluency- number of ideas able to generate

Flexibility- how different the ideas are from one another

Originality

Question 6

Decision making traps to avoid

Answer 6

Overconfidence bias
Hindsight bias
Anchoring (relying on a single piece of info)
Framing bias (being influenced by the way that a situation or problem is presented)
Escalation of commitment

Question 7

8 symptoms of group think

Answer 7

1. Illusion of invulnerability
2. Collective rationalism (downplaying negative info)
3. An unquestioned belief in the groups inherent mortality
4. Stereotyped views of outgroups
5. Direct pressure
6. Self-censorship (minimizing own doubts)
7. Illusions of unanimity
8. The emergence of self appointed mind guards

Question 8

List the tools and techniques for better group decisions

Answer 8

Nominal group technique- ensuring members participate

Delphi technique- group process using written responses to a series of questionnaires

Majority rule

Consensus

Question 9

What is GDSS?

Answer 9

Group decision support systems

They are computer based systems for better decision making