Lecture 10: Management Skills and Decision Making

Question 1

What are the 2 major types of decision making?

Answer 1

1. Qualitative: gut feeling, judgement call, based on my experience
2. Quantitative: needs the data, wants stats, facts

Question 2

What is the advantage of using models?

Answer 2

1. less time (don’t have to wait for something to happen)
2. less expense
3. reduces risk
4. draw conclusions w/implementation

Question 3

What are disadvantages of using models?

Answer 3

1. not always representative of the real world
2. not all variables are valued correctly
3. miss certain variables
4. sometimes models are too complex

Question 4

What is the rational logical decision style?

Answer 4

• focus on the facts and data
• step by step process
• no judgement
• paralysis by analysis
• what does the research say?

Question 5

What is the nonrational/intuitive decision style?

Answer 5

1. avoids stats and data
2. gut decision makeers
3. rely on intuition

Question 6

What is the predisposed decision style?

Answer 6

• they make their decision before input
• ignore critical information: getting supporting evidence for their point but don’t show counter evidence