decision making

Question 1

steps in the decision-making process

Answer 1

identify problem
identify decision criteria
allocate weights to criteria
develop alternatives
analyze alternatives
select alternative
implement the alternative
evaluate decision effectiveness

Question 2

classical view vs socioeconomic view

Answer 2

increasing profits vs do the right thing for society

Question 3

approaches to decision-making

Answer 3

rational model
bounded rationality (satisfice)
intuition decision making

Question 4

types of decisions: programmed vs unprogrammed

Answer 4

repetitive and routine vs develop a unique solution

Question 5

structured vs unstructured

Answer 5

well-defined problems, criteria and alternatives vs new, ambiguous or uncertain

Question 6

decision-making conditions

Answer 6

certainty
risk
uncertainty

Question 7

group decision making

Answer 7

pros: combine skills and knowledge, acceptance, legitimacy
cons: waste time, minority domination, ambiguous responsibility, groupthing

Question 8

individual vs group decision-making

Answer 8

quick and efficient (right decisions > consensus)
accuracy, creativity and acceptance

Question 9

decision-making biases

Answer 9

anchoring bias
availability bias
representativeness bias
overconfidence bias
selective perception bias
confirmation bias
sunk costs bias
escalation of commitment error
self-serving bias
hindsight bias

Question 10

contemporary issues

Answer 10

national culture
creativity
design-thinking
big data