Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Business mgmt Organization > Decision Making and the essential of control > Flashcards

Decision Making and the essential of control Flashcards

1
Q

Decision making

A

making choices among alternative courses of action

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

why is decision making important

A

it increases your effectiveness at work.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Questions to ask to find out if decisions are ethical

A
  1. is this decision fair
  2. will i feel better or worse afterwards
  3. does it break org. rules?
  4. does it break laws?
  5. how would i feel if its on the news
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Decision Types

A

Programmed decisions (habitual) –> have autoamted response (decision rule)

non programmed decisions (iunique)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Decision making categories

A

Strategic decisions (set the course of the org)

tactical decision (how thigns are done)

operational decisions (everyday decisions in business)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Decision making models

A

Rational decision making model

bounded rationality decision making model

intuitive decision making model

creative decision making model

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Rational decision making model

A

series of steps that decision makers take to maximize the quality of their outcome.

  1. identify the problem
  2. establish decision criteria
  3. weigh criteria
  4. generate alternatives for options
  5. evaluate alternatives against criteria
  6. choose best alternative
  7. implement decision
  8. evaluate the decision
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Analysis paralysis

A

availability of too much information, more and more time is then spent on gathering information and thinking about it and no decision is made.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Bounded Rationality model

A

recognizes the limitations. According to this models you limit your options to amanageable set and choose best alternative without conductivng a heavy serarch for alternatives.

Important approach is the tenency to satisfice – accept the first solution that meets your criteria.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

intuitive decision making

A

Arraive at decisions without conscious reasoning.

This works well if you have training, experience and knowledge, and have a idea of how well a solution may work.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Creative decision making

A

New imaginative ideas.

5 Steps.:

  1. problem identification
  2. immersion (think about problem consciously and gather info)
  3. incubation (set problem aside. work on problem unconsciously)
  4. illuminiation (insight moment)
  5. verification and application (verify feasibility and implement it)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Dimensions of creativity

A

Fluency
Flexibility
Originality

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Faulty decision making

A

potential cahllenges lie in several biases and traps

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Overconfidence bias

A

onverestimate the ability to predict future events.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

hindsight bias

A

mistakes seem obvious when looking back in time. a problem when judging someone elses ideas.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

anchoring

A

tendency for individuals to rely too heavily on single pieces of information

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

framing bias

A

tendency of decision makers to be influenced by the way that a situation or problem is presented. (be aware to not make a disadvantageous dicision because of how its framed)

18
Q

escalation of commitment

A

“you have already invested in a sinking ship” so now you have to stay on it or invest even more.

19
Q

group decision making

A

has some advantages also some disadvantages

is slower than individual decision making since all members need to express their thoughts and ideas, it can lead to groupthink (not critizie teams favorable ideas) and social loathing (do less work in a team). Also the group is rarely better than its best member.

positive aspects are a wieder range of experience, diverse background which lead to more and maybe better ideas than otherwise. Also discussion etcn leads to more insights and more errors could be found. but its also more fun and in the end everybody is commited because the group invested in it. for groupthink, groups should have a devils advocate (rotating) every meeting!!

20
Q

Decision making methods

A

Nominal Group Technique (anon write down ideas, gather ideas until all shared, discussion where each member tells his thoughts to the anon ideas, finall ya voting for fav idea

delphi technique: series of questionaires to find a decision

Majority rule: rule of majority

Consensus: reach consensus

Group decision support systems : like knowledge management

Decision trees

21
Q

premortem technique

A

plan a project and outline a plan.

ask all team members to see the project fail and write all reasons down.

22
Q

ESSENTIALS OF CONTROL

A

ESSENTIALS OF CONTROL

23
Q

organisational control has 2 functions

A

help managers determine wheter or why their strategy is achieving the desired results

early warning system incases when you get off track.

24
Q

what is organisational control

A

process by which an org. influences its subunits and members to behave in ways that lead to the attainment of organizational goals and objectives.

25
Q

4 steps of org. control

A
  1. establish standards
  2. measure performance
  3. compare
  4. take corrective action
26
Q

Controls come at a cost

A

financial
damage to culture and reputation
decrease responsiveness
botched implementation (controls are misunderstood or interfering and making even more problems)

27
Q

benefits of org. control

A

improved cost and productivity control
improved quality control
opportunity recognition
better ability to manage uncertainty and complexity
better ability to decentralize decision making

28
Q

Examples of controls

A

Cost can be controlled using budgets

productivity can be controlled by comparing how much each person can control

quality can be controlled as response time/ accuracy, / by measuring!

29
Q

levels of control

A

Strategic : Big picture
Operational : Execution

strategic: make sure ship is going into the right direction

Operation: make sure ship is in good condition

30
Q

Types of controls

A

Proactivity: adresses what we can do ahead of time to help our plan suceed. (feedforward control)

concurrent control( monitoring and adjusting ongoing activities and processes)

feedback controls (gather information about completed activity, evaluate and learn for future)

outcome controls: little performance measures available , no coordination with other business units

behavioral control: direct evaluation of managerial and employee decision making (not of results!)

31
Q

controls can take 2 forms

A

Financial controls

non financial controls

32
Q

Financial controls

A

balance sheet
income / profit and loss
cash flow statement

33
Q

non financial controls

A

controls where nonfinancial perfomrance outcomes are measured

its important because these are likely to affect profitability in a long run

34
Q

examples of nonfinacial controls

A 
employee satisfaction
employeee turnover
new products launched
customer satisfaction
brand power
number of defects
product returns 
capacity utilization
quality of purcahsed inputs
new patents
number of emplyoees with phd
...
35
Q

CAREFULL

A

nonfinacncial controls should just “add “ to the financial controls and not substitute them !!!

36
Q

other mistakes

A

not using nonfinancial controls
controls not linked to strategy
failling to validate links

For instance, (1) good employee recruiting leads to (2)
satisfied employees, which leads to (3) an employee base that creates value, which leads to (4) satisfied customers,
which leads to (5) profitable customer buying patterns, which lead to (6) good profitability. Yikes!

faililing to set appropriate performance tqargets
measurement failure

37
Q

LEAN control

A

popular business control and improvement methodology !

system of nonfinancial controls used to improve product and service quality and decrease waste!

principe is to use less of resources (spance, inventory, workers.. ) to produce comparable output!
Avoid MUDA = WASTE!

38
Q

7 wastes of lean

A 
defects
overproduction
transportation 
waiting
inventory
motion
overprocessing
39
Q

5 core pricniples of lean

A

define value from the customers perspective

describe the value stream fro each product or service

create flow in each value stream

produce at the pace of actual customer demand (reduce lead time and increase flexibility)

strive to continously improve all business operations

40
Q

Balanced scorecard

A

originally introduced to integrate financial and non financial controls in a way that provided a balanced understanding.

evolved into a strategic performance management tool.

41
Q

what is a balanced scorecard

A

control system that tnraslates an organizations vision, mission and strategy into specific quantifiable goals and monitors the performance in terms of achieving this goals.

Business mgmt Organization (10 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions