Chapter 2 - Making Decisions

Question 1

What is a Decision?

Answer 1

A choice among two or more alternatives.

Question 2

What is the first step in the decision-making process?

Answer 2

Identifying a problem: Clearly define the issue or decision that needs to be made.

Question 3

What is a problem in the context of decision-making?

Answer 3

An obstacle that makes it difficult to achieve a desired goal or purpose.

Every decision starts with a problem, a discrepancy between an existing and a desired condition. Example: Amanda is a sales manager whose reps need new laptops.

Question 4

What is the second step in the decision-making process?

Answer 4

Identifying decision criteria: Determine the factors or standards that will guide the decision.

Question 5

What is the third step in the decision-making process?

Answer 5

Allocating weights to the criteria: Assign importance or priority to each criterion.

Question 6

Why is it important to allocate weights to the criteria?

Answer 6

If the relevant criteria aren’t equally important, the decision maker must weight the items to give them the correct priority in the decision.

Example: The weighted criteria for Amanda’s computer purchase are shown in Exhibit 2-2.

Question 7

What is the fourth step in the decision-making process?

Answer 7

Developing alternatives: Generate possible solutions or options to address the decision.

Question 8

What is the fifth step in the decision-making process?

Answer 8

Analyzing alternatives: Evaluate and compare the alternatives based on the weighted criteria.

Question 9

What is the sixth step in the decision-making process?

Answer 9

Selecting an alternative: Choose the best option based on analysis.

Question 10

What is the seventh step in the decision-making process?

Answer 10

Implementing alternatives: Execute the chosen solution and monitor its effectiveness.