Factors Affecting Decision Making

Question 1

What are internal factors affecting decision making in business organizations?

Answer 1

Internal factors include human factors, financial factors, and technological factors.

Question 2

What are the human factors that influence decision making?

Answer 2

Human factors include skills and expertise, cognitive biases, and organizational culture.

Question 3

How do skills and expertise affect decision making?

Answer 3

The knowledge and abilities of decision-makers and team members can significantly influence outcomes.

Question 4

What are cognitive biases in decision making?

Answer 4

Cognitive biases are tendencies that affect judgment, such as overconfidence.

Question 5

How does organizational culture impact decision making?

Answer 5

Organizational culture shapes how decisions are made and accepted based on values, beliefs, and behaviors.

Question 6

What financial factors affect decision making?

Answer 6

Financial factors include budget constraints and cost-benefit analysis.

Question 7

How do budget constraints influence decision making?

Answer 7

Availability of financial resources can limit options and affect the feasibility of decisions.

Question 8

What is the role of cost-benefit analysis in decision making?

Answer 8

Cost-benefit analysis guides the decision-making process by evaluating financial implications, including projected returns and costs.

Question 9

What technological factors influence decision making?

Answer 9

Technological factors include technology availability and technological change.

Question 10

How does technology availability enhance decision making?

Answer 10

Access to technology can enhance data analysis and improve efficiency in decision-making.

Question 11

Why is technological change important in decision making?

Answer 11

Rapid advancements can necessitate quick decisions to remain competitive.

Question 12

What are external factors affecting decision making in business organizations?

Answer 12

External factors include governmental, political & legal factors, social & cultural factors, technological factors, and economic factors.

Question 13

What governmental, political & legal factors influence decision making?

Answer 13

Regulations and political climate can dictate certain decisions.

Question 14

How do regulations affect decision making?

Answer 14

Compliance with laws and regulations can dictate certain decisions.

Question 15

What social & cultural factors impact decision making?

Answer 15

Social & cultural factors include consumer preferences and cultural norms.

Question 16

How do consumer preferences guide decision making?

Answer 16

Understanding market trends and consumer behavior can guide product development and marketing strategies.

Question 17

What technological factors are considered in external decision making?

Answer 17

Technological factors include industry trends and innovation pressure.

Question 18

Why are industry trends important for decision making?

Answer 18

Keeping up with technological advancements is crucial for competitiveness.

Question 19

What economic factors affect decision making?

Answer 19

Economic factors include market conditions and cost-effectiveness.

Question 20

How do market conditions impact decision making?

Answer 20

Economic trends (e.g., recession or growth) impact decision-making, particularly in pricing and investment strategies.

Question 21

What is the significance of cost-effectiveness in decision making?

Answer 21

Evaluating the financial efficiency of options helps ensure resource optimization.

Question 22

What is environmental sustainability in the context of decision making?

Answer 22

Environmental sustainability includes corporate social responsibility (CSR) and regulatory compliance.

Question 23

How does corporate social responsibility (CSR) affect decision making?

Answer 23

Increasing pressure for sustainable practices can affect product development and operational decisions.

Question 24

What role does regulatory compliance play in decision making?

Answer 24

Environmental laws can shape decisions, especially for manufacturing and resource usage.