chapter 4

Question 1

Programmed decisions:

Answer 1

A decision that is relatively structured or recurs with
some frequency (or both)
▪ Example: starting your car in the morning

Question 2

Nonprogrammed decisions:

Answer 2

A decision that is relatively unstructured and occurs
much less often than a programmed decision
▪ Example: choosing a vacation destination

Question 3

State of certainty:

Answer 3

A condition in which the decision maker knows with
reasonable certainty what the alternatives are and
what conditions are associated with each
alternative
▪ Few organizational decisions are made under
conditions of true certainty.

Question 4

State of risk:

Answer 4

A condition in which the availability of each
alternative and its potential payoffs and costs are all
associated with probability estimates
▪ Decision making under conditions of risk is
accompanied by moderate ambiguity and the
chances of a bad decision.
▪ Examples: contract negotiations, choosing health
insurance for employees

Question 5

State of uncertainty:

Answer 5

A condition in which the decision maker does not
know all the alternatives, the risks associated with
each, or the likely consequences of each alternative
▪ To make effective decisions in these circumstances,
managers must acquire as much relevant
information as possible and approach the situation
from a logical and rational perspective.
.

Question 6

Classical decision model:

Answer 6

• A perspective approach to decision making that tells
  managers how they should make decisions; it assumes
  their decisions will be in the organization’s best
  interests
• Assumes decision makers have complete information
• They can effectively eliminate uncertainty
• They evaluate all aspects logically and rationally

Question 7

Steps in the Rational Decision-Making Process

Answer 7

see Table 4.1 in chapter 4

Question 8

advantages of decision making

Answer 8

more info and knowlegde is available

more alternatives are likly to be genarated

more acceptece of the final decsion is likely

Question 9

disadvantages of group decision making

Answer 9

the process takes longer then individually decision making

one person may domniate the group

groupthink may occur

Question 10

Groupthink

Answer 10

A situation that occurs when a group or team’s desire for
consensus and cohesiveness overwhelms its desire to
reach the possible decision