Lesson 7 ( making desicions )

Question 1

definition of decision making

Answer 1

the process of identifying problems and opportunities and then resolving them

Question 2

steps of decison making process

Answer 2

1. Identify the problem
2. identification of decision factors
3. Applying weights on the factors
4. develop altrenatives
5. analyse the altrenatives
6. select an altrenative
7. putting a decision into practice
8. verifying the decision

Question 3

approaches to decision making

Answer 3

1. Making decisions logically : describes choices that are rational and consistent, and which maximize value.
2. Limited rationality : Making rational decisions that are limited by the person’s capacity to process information.
3. Making decisions with instinct : deciding based on judgment, feelings, experience and wisdom
4. evidence-based management :the systematic use of the most reliable evidence to improve management practice
5. Crowdsourcing :using the internet to get ideas from a network of people outside the organization’s typical decision-makers.

Question 4

what are the main 2 types of decisions?

Answer 4

1. programmed decisions :made in response to recurring organizatinal problems
2. non programmed decisions: unstructured, upper levels, non recurring , new , unusua

Question 5

what are the two types of decisions

Answer 5

PROGRAMMED AND NON PROGRAMME
1. programmed decisions: habits, rules and procedures

2. non programmed decisions: deals with unusual problems

ADD.,

MAJOR AND MINOR DECISIONS

ROUTINE AND STRATEGIC DECISIONS

ORGANIZATIONAL AND PERSONAL DECISIONS

INDIVIDUAL AND GROUP DECISONS

POLICY AND OPERATIVE DECISIONS

Question 6

what are the Decision making styles

Answer 6

1. analytic:
   * need a lot of datat before they make a move forward with a decision
   * ability to cope with new situations
   * careful decision makers
2. conceptual:
   * taking long lasting decisions
   * consider many altrenatives
   * good at finding creative solutions
3. directive:
   * tend to rely on their own experience and knwoledge
   * based on standard operating procedures and rules
   * efficient and logical
4. behavioural:
   * maintain harmoney and find a solution that makes everone satisfied with
   * work well with others
   * relysing heavily on meetings
   * challenge old ideas perfectly

Question 7

what Decision making biases and errors focuses oN?

Answer 7

biases: decisions that are not fair and balanced
erros: business errosrs or mistakes that occur to poor desion making

Question 8

what are Decision making biases and errors

Answer 8

1. Overconfidence Bias: holding unrealistically positive views of oneself other than their actual skills
2. Immediate Gratification Bias: choosing alternatives that offer immediate rewards and avoid immediate costs
3. Selective Perception Bias: selecting, organizing and interpreting events based on the decision maker’s biased perceptions
4. Confirmation Bias: seeking out information that reaffirms past choices while discounting contradictory information
5. Anchoring Effect: fixating on initial information and ignoring subsequent information

Errors
6. Randomness Bias: creating unfounded meaning out of random events

7. Sunk Costs Errors: forgetting that current actions cannot influence past events and relate only to future consequences

Question 9

how to Improve decision making

Answer 9

Two innovative decision-making tools that are technology-driven are:

1. Design thinking:
   approaching management problems as designers approach design problems
2. Big data and Artificial Intelligence:
   big data refers to huge and complex data sets now available. Big data has opened the door to widespread use of artificial intelligence (A I)
3. Big data: the vast amount of quantifiable data that can be analyzed by highly sophisticated data processing.
4. Artificial Intelligence (A I) – uses computing power to solve complex problems
   A I systems have the ability to learn and have facilitated the use of new tools such as:
   Machine learning
   Deep learning
   Analytics