Decision Making Process

Question 1

Name 3 benefits to group decision making

Answer 1

Provides more knowledge. 
Broader ideas.
Wide range of view points.
Likely to accept more risks. 
Increases motivation.
Increases creativity.

Question 2

Name 3 negatives to group decision making

Answer 2

Groups cannot be held responsible.
Group discussions can be time costly.
Inefficient if time is short. 
Could be the result of indecsion.
Demotivating if doesn't produce a group decision,

Question 3

What are the 5 points of a basic decision making process

Answer 3

Identify problem
Develop alternative
Evaluate alternative
Implement decision
Evaluate results

Question 4

What do you need to get throughout the decision making process

Answer 4

Feedback

Question 5

How would you determine the ‘Quality of the Decision’

Answer 5

Measured by use of objective facts, technical knowledge or financial resources

Question 6

How would you determine the ‘Acceptance of the Decision’

Answer 6

Measured by how much it affects the personal feelings of subordinates, how much their emotions need to be satisfied

Question 7

Who detailed the 3 Principal Decision Areas in 1988

Answer 7

H. Igor Ansoff and Edward J. McDonnell

Question 8

What is a strategic decision

Answer 8

A basic, long term decision

Question 9

What is an operation decision

Answer 9

A Short term decision. Concentrates on output levels / pricing etc and has less variables than strategic

Question 10

What is an administrative decision

Answer 10

A decision that arises as a result of strategic and operating decisions

Question 11

Mintzberg et al (1976) identified three sections of the decision making process. What are they

Answer 11

Identification
Development
Selection

Question 12

What did Hammand et al (19987) say about where the fault lies in bad decisions

Answer 12

The fault can be traced back to the way they were made. The fault lies with the decision maker, not the process

Question 13

What did Charan (2001) say about where the fault lies in bad decisions

Answer 13

The fault lies within the organisations culture and lack of communication. The problem is the managments ability to implement decisions.

Question 14

What 3 points must be defined when managing strategic change

Answer 14

Why is it needed
What direction/method of development is required
What changes are required tp the structure and design of the organisation

Question 15

Name 3 decision making tools

Answer 15

Operational research
Linear programming
Simulations
Deciaion tree
Cost-benefit analysis