chapter 4

Question 1

decision-making process

Answer 1

1. Recognizing and defining the nature of a decision situation
2. identifying alternatives
3. choosing the “best” alternative
4. putting it into practice

Question 2

programmed decision

Answer 2

A decision that is fairly structured or recurs with some frequency

Question 3

Nonprogrammed decisions

Answer 3

A decision that is relatively unstructured and occurs much less often than a programmed decision

Question 4

classical decision model

Answer 4

tells managers how they should make decisions; assumes that managers are logical and rational

Question 5

Five Principles of Evidence-Based Management

Answer 5

1. Face the hard facts
2. Be committed to “fact-based” decision making
3. encourage experimentation and learning by doing.
4. Look for the risks and drawbacks in what people recommend
5. Avoid basing decisions on untested but strongly held beliefs

Question 6

Bounded rationality

Answer 6

decision-makers are limited by their values and unconscious reflexes, skills, and habits

Question 7

satisficing

Answer 7

The tendency to search for alternatives only until one is found that meets some minimum standard of sufficiency

Question 8

Risk propensity

Answer 8

The extent to which a decision maker is willing to gamble when making a decision

Question 9

Delphi group

Answer 9

a group is used to achieve a consensus of expert opinion

Question 10

nominal group

Answer 10

technique used to generate creative and innovative alternatives or ideas