Management decision making

Question 1

What is a decision

Answer 1

A conclusion or resolution reached after consideration.

Question 2

What is scientific decision making

Answer 2

Scientific decision making occurs when a logical approach is used to make a decision, including the collection of data and consideration of either option.

Question 3

Pros of scientific decision making

Answer 3

Encourages collection of data to aid in decision making and so is evidence based

Encourages the consideration of more than one possibility

Enables the entrepreneur to provide support for their decision

Question 4

Cons of scientific decision making

Answer 4

Time consuming

Reduces creativity

Reliant on the collection of data which could be subject to bias, or outdated

Question 5

When is scientific decision making used

Answer 5

There is a lack of experience
People need persuading
When there is a lot of data
When companies are risk averse