Types Of Decision Making

Question 1

What is intuition decision making?

Answer 1

The ability to understand something without the need for conscious reasoning, based on personal views.
• Based on intuition, gut feeling, and experience.
• key benefit - quick.
• but hard to justify for business decisions involving significant risk.

Question 2

What is scientific decision making?

Answer 2

A logical and research-based approach to decision-making.
• based on data and analysis.
• downside: time consuming and costly with no guarantee of the right decision.
• increasingly common and automated.
• supported by big data and data analysis.
• uses evidence and a systematic approach.

Question 3

What are the steps of the scientific decision making model?

Answer 3

1.) set objectives
2.) gather data
3.) analyze data
4.) select a strategy/make a decision
5.) implement and review decision

Question 4

What are the advantages of scientific decision making?

Answer 4

• reduces the risk of making mistakes as based on data.
• logical and systematic.
• can back up decisions with data if decision is questioned.

Question 5

What are the disadvantages of scientific decision making?

Answer 5

• can be time-consuming and costly to collect the data required.
• qualitative data (eg experience/expertise of staff) may not be considered.
• data could be out of date which makes it unreliable, so affects quality of decisions.

Question 6

What are the advantages of intuitive decision making?

Answer 6

• uses managers experiences
• quick and cheap/free
• can be innovative
• reduces complexity
• considers external, qualitative information

Question 7

What are the disadvantages of intuitive decision making?

Answer 7

• no evidence to back it up
• hard to justify
• liable for actions
• decisions could be biased
• limited perspective