Chapter 2 Flashcards
_____ are tools that help choose between several courses of action or alternatives.
Decision Trees
Group process using written responses
Delphi Technique
principle of insufficient reason; all states of nature are equally likely (highest average)
Decision maker
The ideal situation for making decisions is one of _____, that is, a situation in which a manager can make accurate decisions because the outcome of every alternative is known.
certainty
A qualitative tool and technique can be used for making better decisions in identifying the disadvantages and advantages of a given alternative solution.
SWOT
____ also called as nonroutine decisions are unique and nonrecurring, often involving incomplete knowledge, high uncertainty, and the use of subjective judgment or even intuition, where no alternative can be proved to be the best possible solution to the particular problem.
Nonprogrammed decisions
Also known as routine decisions involve standard decision procedures, and entail a minimum of uncertainty.
Well-Structured Problems and Programmed Decisions.
___ the process of identifying and choosing alternative courses of action in a manner appropriate to the demands of the situation.
Decision making
The decision maker is able to estimate the likelihood of certain alternatives or outcomes.
Risk
___ according to Nickels and others, “is the heart of all the management functions”.
Decision making
maximax choice (maximizing the maximum possible payoff)
Optimistic manager
Decisions which involve regular survey of the market are _____ and decisions made under situations of crisis or emergency are crisis — intuitive decisions.
Research decisions
Decisions are taken in unstructured situations which reflect novel, ill-defined and complex problems.
Poorly Structured Problems and Nonprogrammed Decisions.
opportunity loss (regret)
Minimax approach
A _____ can be used by a manager to graphically represent which actions could be taken and how these actions relate to future events.
decision tree
____ plays vital importance in the functioning of an organization
decision making
Decisions are taken as a matter of routine. It relates to daily operations and aims to achieve short-term objectives of the firm.
Operational decisions
According to the Oxford Advanced Learner’s Dictionary the term _____ means - the process of deciding about something important, especially in a group of people or in an organization.
decision making
In such condition of ______, the decision maker can choose among several possible approaches for making the decision.
uncertainty
These decisions reflect foresightedness. Managers forecast opportunities to promote organizational growth.
Opportunity decisions
It is a statistical technique in decision making also known as the 80/20 rule that is used for the selection of a limited number of tasks that produce significant overall effect.
Pareto Analysis
A _____ activity that pervades all other activities pertaining to the organization.
continuous and dynamic
One common technique for decision making under certainty is called ______.
linear programming
Weighs benefits of an input or activity against the costs
Marginal Analysis
____ describes a series of steps that decision makers should consider if their goal is to maximize the quality of their outcomes.
Rational decision-making
Generally used in financial management
Payback Analysis
maximin choice (maximizing the minimum possible payoff)
Pessimistic manager
_____ is the process of making a conscious choice between two or more rational alternatives in order to select the one that will produce the most desirable consequences (benefits) relative to unwanted consequences (costs).
Managerial decision making
Depending on the nature of the problem, the engineer manager can use different types of decisions:
Well-Structured Problems and Programmed Decisions.
Poorly Structured Problems and Nonprogrammed Decisions.
When dealing with multiple choices and variables, a _____ can bring clarity to the disarray.
decision matrix
Decisions taken in interest of the organization.
Organizational decisions
