Robbins Chapter 7

Question 1

T/F: Decision making is not a process. It is simply choosing among alternatives.

Answer 1

False. Decision making is a process, and not just a simple act of choosing among alternatives. (Page 178, Last Paragraph)

Question 2

8 Steps of The Decision-Making Process

Answer 2

1. Identifying a Problem, 2. Identifying Decision Criteria, 3. Allocating Weights to the Criteria, 4. Developing Alternatives, 5. Analyzing Alternatives, 6. Selecting an Alternative, 7. Implementing the Alternative, 8. Evaluating Decision Effectiveness (Problem, Decision criteria, Weights, Developing, Analayzing, Selecting, Implementing, Effectiveness - Patrice Disconnected With D A S I E)

Question 3

Problem

Answer 3

A discrepancy between an existing and a desired condition or An obstacle that makes it difficult to achieve a desired goal/purpose

Question 4

Decision

Answer 4

A choice among 2 or more alternatives (obviously haha)

Question 5

T/F: Managers need not worry about confusing problems with symptoms of the problem.

Answer 5

False. Managers should have to be cautious between distinguishing problems and its symptoms (Declining Sales [symptom] due to, for example bad advertising[problem]) (Page 180, Paragraph 1)

Question 6

Decision Criteria

Answer 6

Criteria that define what’s important or relevant to resolving a problem

Question 7

In Step 5: Analyzing Alternatives, each alternative is evaluated through the ___; then the numerical data relating to the alternative is multiplied to ___

Answer 7

Criteria established in Step 2; Weights allocated in Step 3

Question 8

In step 7 in the decision-making process, the decision is put into action by ___

Answer 8

Conveying it to those affected and getting their commitment to it.

Question 9

If the people tasked to implement a decision ____, they’re more likely to support it than if you just tell them what to do.

Answer 9

participate in the process

Question 10

In Evaluating Decision Effectiveness, the questions asked are ____

Answer 10

If Steps 1-7 were done correctly (See Page 182, Paragraph “Step 8: Evaluating Decision Effectiveness”

Question 11

T/F: Decision making is not part of all four managerial functions

Answer 11

False. (Page 182, Paragraph “Managers Making Decisions”)

Question 12

Rational Decision Making

Answer 12

Making logical and consistent choices to maximize value

Question 13

Assumptions of Rationality

Answer 13

Rational Decision Maker: Fully Objective and Logical;Problem Faced: Clear and Unambiguous; Decision Maker: Has Clear and Specific Goal and know all possible Alternatives and Consequences; Selecting the Alternative that Maximizes the Likelihood of Achieving that Goal. Sentence for memory: a RanDoM guy: Fell Off the Ladder; Placed For:Climbing Up; the Dungeon Master’s:Closed, Sealed, Guarded, Area of Conjuring; SAM LAG (some log) lol I did my best HAHA

Question 14

Bounded Rationality

Answer 14

Decision making that’s rational, but limited (bounded) by an individual’s ability to process information

Question 15

Satisfice

Answer 15

Accept solutions that are “good enough” because managers can’t possibly analyze all information on all alternatives

Question 16

Escalation of Commitment

Answer 16

An increased commitment to a previous decision despite evidence that it may have been wrong? ?because the managers don’t want to admit that their initial decision may have been flawed.

Question 17

[Escalation of Commitment] Instead of searching for ___ they simply ___ to the ___

Answer 17

new alternatives, increase their commitment, original solution

Question 18

Intuitive Decision Making

Answer 18

Making decisions on the basis of experience, feelings, and accumulated judgment

Question 19

5 Aspects of Intuition

Answer 19

Subconscious mental processing, Values/ethics-based decisions, Experienced-based decisions, Affect-initiated decisions, Cognitive-based decisions

Question 20

Evidence-Based Mgmt (EBMgt)

Answer 20

systematic use of the best available evidence to improve mgmt practice

Question 21

4 Essential Elements of EBMgt

Answer 21

1. Decision Maker’s Expertise and Judgment, 2. External Evidence that’s been evaluated by the decision maker, 3. Opinions, Preferences, and Values of those who have a Stake in the decision, 4. Relevant Organizational (internal) Factors i.e. context, circumstances, and org members

Question 22

Structure Problems

Answer 22

Straight-forward, familiar, easily defined.

Question 23

Programmed Decision

Answer 23

Repetitive deciion that can be handled by a routine approach.

Question 24

Because the problem is structured, the manager doesn’t have to ___. Step __ is either non-existent or given little attention since if a structured problem is defined, the solution is usually ___

Answer 24

go to the trouble and expense of going through an involved decision process, 4, usually self-evident or at least reduced to a few alternatives that are familiar and have proven successful in the past

Question 25

3 Types of Programmed Decisions

Answer 25

Procedure, Rule, Policy

Question 26

Procedure

Answer 26

Series of sequential steps that a manager uses to respond to a structured problem. Once the problem is clear and has been identified, the procedure is also clear

Question 27

Rule

Answer 27

Explicit statement that tells a manager what can/cannot be done. Frequently used because they're simple to follow and ensure consistency

Question 28

Policy

Answer 28

Guideline for making a decision. Typically contain an ambiguous term that leaves interpretation up to the decision maker.

Question 29

In contrast to a rule, a policy establishes ___ for the decision maker rather than ___

Answer 29

general parameters, specifically stating what should or should not be done

Question 30

Note: Exhibit 7-7 on Page 187 is useful

Answer 30

N/A

Question 31

Unstructured Problems

Answer 31

Problems that are new/unusual and for which info Is ambiguous or incomplete.

Question 32

When problems are unstructured, managers must rely on ___ in order to develop unique solutions

Answer 32

nonprogrammed decision making

Question 33

Nonprogrammed decisions

Answer 33

Unique and nonrecurring and involve custom-made solutions

Question 34

Lower-level managers mostly rely on ___

Answer 34

programmed decisions

Question 35

As managers move up the organizational hierarchy, the problems they confront become more ___ because ___ handle the ___ and let ___ deal with the ___

Answer 35

unstructured, lower-level managers, routine decisions, upper-level managers, unusual or difficult decisions

Question 36

Upper-level managers ____ so they can deal with more difficult issues

Answer 36

delegate routine decisions to their subordinates

Question 37

T/F: A lot of managerial deciions in the real world are either fully programmed or nonprogrammed.

Answer 37

False. Most fall somewhere in between.

Question 38

3 Decision-Making Conditions

Answer 38

Certainty, Risk, Uncertainty (182 stuff lol)

Question 39

Certainty

Answer 39

Ideal situation for making decisions.

Question 40

Certainty is a situation where a manager can make __ decisions because ___

Answer 40

accurate, outcome of every alternative is known

Question 41

T/F: Most managerial decisions are characterized with certainty.

Answer 41

False.

Question 42

Risk

Answer 42

A for more common [compared to certainty] situation. Conditions in which the decision maker is able to estimate the likelihood of certain outcomes.

Question 43

Under risk, managers have __ from past personal experiences or secondary info that lets them ___

Answer 43

historical data, assign probabilities to different alternatives.

Question 44

Uncertainty

Answer 44

A situation in which a decision maker has neither certainty nor reasonable probability estimates available

Question 45

When the manager is __ about the outcomes and can't even make ___ is a condition called uncertainty

Answer 45

not certain, reasonable probability estimates

Question 46

Under uncertainty, the choice of alternative is influenced by the ___ and by the ___

Answer 46

limited amt of available info, psychological orientation of the decision maker

Question 47

Optimistic manager: ___; Pessimistic manager: ___;

Answer 47

Maximax, Maximin

Question 48

A manager who desires to ___ will opt for a minimax choice.

Answer 48

minimize his maximum "regret"

Question 49

Linear thinking style is characterized by a person's ___ and processing this info through ____ to guide decisions and actions.

Answer 49

preference for using external data and facts; rational, logical thinking

Question 50

Nonlinear thinking style is characterized by __ and processing this info with __ to guide decisions and actions

Answer 50

a preference for internal sources of information (feelings and intuition); internal insights, feelings, and hunches

Question 51

Heuristics

Answer 51

"rules of thumb"; Useful because they help make sense of complex, uncertain, and ambiguous info

Question 52

T/F: If managers use rules of thumb, that means those rules are reliable.

Answer 52

False because they may lead to errors and biases in processing and evaluating info

Question 53

12 Decision-Making Errors and Biases

Answer 53

Overconfidence, Immediate Gratification, Anchoring Effect, Selective Perception, Confirmation bias, Framing, Availability, Representation, Randomness, Sunk Costs, Self-serving, Hindsight

Question 54

Note: Page 192 Exhibit 7-12 is useful

Answer 54

N/A

Question 55

Effective Decision Making Techniques

Answer 55

1. Understand cultural differences, 2. Know when it's time to call it quits, 3. Use an effective decision-making process, 4. Build an org that can spot the unexpected and quickly adapt to the changed environment, 5. Don't be tricked by success, 6. Defer to experts on the front line, 7. Let unexpected circumstances provide the solution, 8. Embrace complexity