Management Decision Making Flashcards
1
Q
What is scientific decision making?
A
-Decision making based on data
2
Q
What are the advantages of scientific decision making?
A
- Reduces risk
- Logicial and structured
- Can be adapted
3
Q
What are the disadvantages of scientific decision making?
A
- Costly and time consuming
- Takes away human element , so is less creative
4
Q
What is intuitive decision making?
A
- Decision making based on gut feel
- Manager senses good decision based on past experiences
- Quick
- Risky
5
Q
What is opportunity cost?
A
- Benefit given up in order to do something else
- Must choose how to use limited resources
6
Q
What other factors affect decision making?
A
- Mission statement
- Objectives
- Ethics
- External environment
- Resource constraints
