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CM Course 1 > Decision Making > Flashcards

Decision Making Flashcards

1
Q

Decisions

A

a means to achieve some result or to solve

some problem. The outcome of a process that is influenced by many forces.

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2
Q

Opportunities and Threats

A

Opportunities and threats both in the internal and external environment, impact decision making

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3
Q

Decision making in response to opportunities

A

occurs when managers search for ways to improve organizational performance to benefit customers, employees, and other stakeholders

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4
Q

Decision making in response to threats

A

occurs when events inside or outside an organization adversely affect organizational performance and
managers search for ways to increase performance without making costly mistakes

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5
Q

Two types of decisions

A

Programmed and Nonprogrammed

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6
Q

Programmed Decisions

A
  • Programmed decisions are situations in which
    specific procedures have been developed for
    repetitive and routine problems.
  • typically handled through rules, standard operating procedures, and the structure of the organization.
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7
Q

Nonprogrammed Decisions

A
  • Nonprogrammed decisions are decisions
    required for unique and complex management
    problems
  • typically handed through a general problem-solving process, judgement, intuition, and creativity.
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8
Q

7 steps of decision making

A
  1. Establish goas and measure results
  2. Identify and analyze the problem(s)
  3. Develop alternative solutions
  4. Evaluate alternatives
  5. Select the best solution
  6. Implement the decision
  7. Follow up and evaluate the decision
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9
Q

Decision Making Process:

Establish Goals and Measure Results

A

Goals are long-term achievements or outcomes that a department or organization wants to accomplish

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10
Q

Decision Making Process: Identify and Analyze the Problem(s)

A

That magnitude of a problem is measured by the gap between the level of performance specified in an organization’s goals and objectives and the level of performance attained

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11
Q

Several factors that make it difficult to identify a problem

A
  • Individual feelings or perceptions of a problem.
  • Defining problems in terms of solutions and jumping to conclusions.
  • Failure to identify the cause of a problem.
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12
Q

Determining problem significance involves consideration of three issues:

A

urgency, impact, and growth tendency

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13
Q

What is a critical part of effective decision making?

A

determining problem significance

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14
Q

Decision Making Process:

Develop Alternative Solutions

A

Before a decision is made, feasible alternatives should be developed, and potential consequences of the alternatives should be considered

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15
Q

How are alternative solutions discovered?

A

through a search process that involves investigating

internal and external environments to gain information that can be developed into possible alternative solutions

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16
Q

What’s one obstacle to problem solving?

A

the ability for managers to identify alternative solutions, as some managers are either too single minded or too close to the problem to view it with a fresh
perspective.

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17
Q

Decision Making Process: Evaluate Alternative Solutions

A

Alternatives must be evaluated and compared once they are identified.

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18
Q

Managers use four criteria to evaluate alternative solutions:

A
  • Legality
  • Ethics
  • Feasibility
  • Practicality
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19
Q

The alternative-outcome relationships is based on three conditions”

A
  • Certainty – The decision maker has complete knowledge of the probability of the outcome of each alternative.
  • Uncertainty – The decision maker has absolutely no knowledge of the probability of the outcome of each alternative.
  • Risk – The decision maker has some probable estimate of the outcomes of each alternative.
20
Q

When managers are evaluating alternative solutions, two cautions should be kept in mind:

A
  • The phase of the decision making process must be kept separate and distinct from the previous step, identifying solutions.
  • Be wary of solutions that are evaluated as being “perfect.”
21
Q

Devil’s Advocate

A

an appointed critic of proposed group actions whose role is to uncover underlying issues with the prevailing direction of the group.

22
Q

Decision Making Process: Select the Best Solution

A

The purpose of selecting the best solution is to solve a problem to achieve a predetermined objective.

  • A decision is not an end in itself, but a means to an end.
  • Decision making is a dynamic process, not just an act of choosing
23
Q

Why are optimal solutions often impossible in managerial decision making?

A

because managers cannot possibly know all of the available alternatives, the consequences of each alternative, and probability of occurrence of these consequences.

24
Q

Decision Making Process: Implement the Decision

A

A decision must be effectively implemented to achieve the objective for which it was made.
- Implementation is more important than the choice of alternative since a “good decision” can
be negated by poor implementation.
- Managers need to choose good solutions, and communicate effectively throughout the
decision making process with possibly affected stakeholders.

25
Q

Evaluating Outcomes

A
  • By referencing key metrics associated with the intended outcome or objective managers can
    develop insights into the quality of a decision.
  • When decision outcomes are not clearly measurable or have unclear results managers can attribute
    good outcomes to their actions and bad outcomes to factors beyond their control.
26
Q

Appraising the Process

A
  • The appraising process of decision making is necessary in order to make continuous improvements
    to decision making in the future.
  • The appraising process consists of asking a series of questions, which the answers will lead to
    improvements.
27
Q

Incomplete Information

A
  • It is common for managers to have a limited or incomplete view of the problems or opportunities they encounter, which can lead to issues in choosing alternative solutions to a problem.
  • With incomplete information managers must make decisions based on bounded rationality.
28
Q

Bounded rationality

A
  • the approach that assumes that decision making is not a perfectly rational process, but rather one that is fraught with constraints and limitations.
  • Decisions based on a bounded rationality approach are not optimal, but are deemed acceptable or satisfactory given the circumstances
29
Q

Time Pressure and Uncertainty

A
  • Decisions are often made impulsively when they coincide with intense time pressure and uncertainty.
  • Decisions that are made very quickly result often times in decisions being made before important questions are asked.
30
Q

Key to making great decisions

A
  • Learn how to assimilate large amounts of information (inputs).
  • Explore a variety of ideas.
  • Draw on a diverse array of experience.
31
Q

Gut Instincts

A

An emotional filter that has no underpinnings of hard analytical support, but in the absence of other filters it may be all a manager has to go on.

32
Q

Data

A

Disparate facts, statistics, or random inputs that when taken in isolation, hold little value. Decisions based solely on data can lead to flawed decisions.

33
Q

Information

A

Derived from a collection of processed data where context and meaning have been added to
disparate facts which allow for a more thorough
analysis.

34
Q

Knowledge

A

Information that has been refined by analysis such that is have been assimilated, tested, and/or validated. Knowledge is actionable and accurate, because a proof of concept exists.

35
Q

What four behavioral factors influence decision making

A
  • Values
  • Risk Orientation
  • Dissonance
  • Ego
36
Q

Behavioral Influences on Decision Making:

Values

A

the guidelines and beliefs that a person uses when confronted with a situation in which a choice must be made.

37
Q

Behavioral Influences on Decision Making:

Risk Orientation

A

A decision maker that is willing to take risks will establish different objectives, evaluate alternatives differently, and select different alternatives than someone afraid to take risks.

38
Q

Behavioral Influences on Decision Making:

Dissonance

A

Cognitive dissonance is a mental state of anxiety that occurs when there is a conflict among an individual’s various cognition’s after a decision has been made.

39
Q

Behavioral Influences on Decision Making:

Ego

A

Decision makers, by way of position, power, and authority, are prone to developing egos or feelings of self-importance and superiority.

40
Q

Negative Influences of Group Decisions

A
  • Pressure to conform to what the majority is thinking.
  • The influence of a dominant personality type in the group.
  • Some participants come to believe they are experts in the problem area.
41
Q

Creativity

A

the process by which an individual, group, or team

produces novel and useful ideas to solve a problem or capture an opportunity

42
Q

Group Creativity Techniques: Brainstorming

A

the generating of ideas in a group through

noncritical discussion.

43
Q

Group Creativity Techniques: Electronic Brainstorming

A

Electronic brainstorming is a computerized version of the face-to-face technique conducted via email.

44
Q

Group Creativity Techniques: Delphi Method

A

The Delphi Method is used to determine the extent to which members of a group agree or disagree about a problem so they can achieve a consensus.

45
Q

Group Creativity Techniques: Nominal Group Technique

A

The nominal group technique is used to generate a ranked list of idea by having participants write down their ideas anonymously, engage in a structured discussion about them, and then rank/vote on the best
ideas.

46
Q

Group Creativity Techniques: Group Passing Technique

A

In the group passing technique each member of a group writes down one idea and then passes the idea to the next person to add additional thoughts.

47
Q

Groups and Nonprogrammed Decisions

A

Nonprogrammed decisions appear to be better suited for group decision making. The following points regarding nonprogrammed group decision making can be made

CM Course 1 (9 decks)

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