Chapter 3

Question 1

Behavioural Decision Model

Answer 1

describes decision making with limited information and bounded rationality.

Question 2

Bounded Rationality

Answer 2

describes making decisions within the constraints of limited information and alternatives.

Question 3

Certain Environment

Answer 3

offers complete information on possible action alternatives and their consequences.

Question 4

Cost-Benefit Analysis

Answer 4

involves comparing the costs and benefits of each potential course of action.

Question 5

Creativity

Answer 5

is the generation of a novel idea or unique approach that solves a problem or takes advantage of an opportunity.

Question 6

Crisis

Answer 6

is an unexpected problem that can lead to disaster if not resolved quickly and appropriately.

Question 7

Crisis Management

Answer 7

preparation for the management of crises that threaten an organization’s health and well being

Question 8

Data

Answer 8

raw facts and observations.

Question 9

Decision

Answer 9

choice among possible alternative courses of action

Question 10

Information

Answer 10

data made useful for decision making

Question 11

Information Technology (IT)

Answer 11

helps us acquire, store, process, and transmit information

Question 12

Information Systems

Answer 12

use IT to collect, organize, and distribute data for use in decision making

Question 13

Intuitive Thinking

Answer 13

approaches problems in a flexible and spontaneous fashion

Question 14

Lack of Participation Error

Answer 14

failure to involve in a decision the persons whose support is needed to implement the decision

Question 15

Management Information Systems (MIS)

Answer 15

meet the information needs of managers in making daily decisions

Question 16

Multidimensional Thinking

Answer 16

an ability to address many problems at once

Question 17

Non-Programmed Decisions

Answer 17

applies a specific solution crafted for a unique problem

Question 18

Optimizing Decision

Answer 18

chooses the alternative giving the absolute best solution to a problem

Question 19

Problem Solving

Answer 19

involves identifying and taking action to resolve problems

Question 20

Programmed Decision

Answer 20

applies to a solution from past experience to a routine problem

Question 21

Risk Environment -

Answer 21

lacks complete information and requires the use of probabilities to determine possible action alternatives and their likely outcomes

Question 22

Strategic Opportunism

Answer 22

focuses on long-term objectives while being flexible in dealing with short-term problems

Question 23

Structured Problems

Answer 23

straightforward and clear with respect to information needs

Question 24

Systematic Thinking

Answer 24

approaches problems in a rational and analytical fashion

Question 25

Uncertain Environment

Answer 25

lacks so much information that it is difficult to assign probabilities to the likely outcomes of alternatives

Question 26

Unstructured Problems

Answer 26

have ambiguities and information deficiencies

Question 27

Advantages Of Group Decisions

Answer 27

• Greater amounts of information, knowledge and expertise are available
• Expand number of alternatives
• Avoids tunnel vision
• Increase understanding and acceptance of outcomes
• Increase commitments of members to work hard

Question 28

Disadvantages Of Group Decisions

Answer 28

• Social pressures to conform
• Minority domination may occur
• Decision making takes longer thus more costly

Question 29

FIVE-STEP DECISION-MAKING PROCESS

Answer 29

1. Identify and define the problem
2. Generate and evaluate possible solutions
3. Make decision and conduct ethics double check
4. Implement the decision
5. Evaluate results