decision-making: performance and pitfalls

Question 1

types of decisions

Answer 1

programmed decisions and nonprogrammed decisions

Question 2

programmed decisions definition

Answer 2

routine decisions that rely on predetermined courses of action

Question 3

nonprogrammed decisions definition

Answer 3

decisions for which there are no ready-made solutions. the decision maker confronts a unique situation in which the solutions are novel.

Question 4

decision making levels

Answer 4

strategic decisions, tactical decisions, operational decisions

Question 5

strategic decisions

Answer 5

big picture choices by top managers that set long-term goals

Question 6

tactical decisions

Answer 6

middle managers decide how to achieve those goals in specific areas

Question 7

operational decisions

Answer 7

front-line decisions to handle daily tasks and keep things running smoothly

Question 8

prescriptive (rational) model assumptions

Answer 8

All relevant information present
 Problem
 Options

Clear, constant preferences

No time constraints

Unlimited information processing

Question 9

characteristics of decisions

Answer 9

decisions are unable to be completely rational
- bounded rationality: humans like to be rational as far as they can be but are limits since we can always be rational, so there will come a point where we become satisfied
-satisficing

decisions contain elements of chance and “chaos”

decision makers are sensitive to political, “face-saving” pressure

Question 10

intuitive decision-making model

Answer 10

the intuitive decision-making model refers to arriving at decisions without conscious reasoning

experts making decisions scan the environment for cues to recognize patterns, ten act based on prior experience