Week 2 - 4.2 Understanding Decision Making

Question 1

What is Decision Making?

Answer 1

Refers making choices among alternative courses of action, may also include inaction. In management is whether the decisions you are making as an employee or manager are ethical.

Question 2

Straightforward Decisions

Answer 2

Termed programmed decisions, these are actions that occur frequently enough that we develop an automated response to them. Automated response is called the DECISION RULE.

Question 3

Nonprogrammed Decisions

Answer 3

Decisions that are unique and important require conscious thinking, information gathering, and careful consideration of alternatives.

Question 4

Decision making can be classified into three categories:

Answer 4

1. Strategic Decisions set the course of organization
2. Tactical Decisions are decisions about how things will get done.
3. Operational Decisions are decisions that employees make each day to run the organization.

Question 5

Effectiveness of non programmed decisions (four decision-making):

Answer 5

1. Rational decision-making model
2. Bounded rationality decision-making model
3. Intuitive Decision making model
4. Creative decision making model

Question 6

Rational Decisions

Answer 6

series of (eight) steps that decision makers should consider if their goal is to maximize the quality of their outcomes. You may want to make sure that you establish your decision criteria before you search for all alternatives. Setting criteria before you search for alternatives may prevent you from making such mistakes. Generating a large number of alternatives that cover a wide range of possibilities, make more effective decisions in which you do not need to sacrifice.

Question 7

Rationality Decision making model

Answer 7

recognize the limitations of our decision making process. Is similar to rational decision making, but it differs in that rather than choosing the best choice and maximizing the potential outcome, the decision maker saves time and effort by accepting the first alternative that meets the minimum threshold.

Question 8

Intuitive Decision making model (important)

Answer 8

it refers to arriving at decisions without conscious reasoning, 59% said they used intuition often. They don’t decide between two or three options and choose the best one, instead they consider only one option at a time. Due to training, experience, and knowledge, these decision makers have an idea of how well a given solution may work.

Question 9

Creative Decision making model

Answer 9

creativity is the generation of new, imaginative ideas. Organizations are driven to be creative in decisions ranging from cutting costs to creating new ways of doing business. Creativity and innovation are not the same thing, innovation begins with creative ideas, but it also involves realistic planning and follow-through.

Question 10

Five steps to CREATIVE decision making:

Answer 10

1. Problem recognition
2. Immersion
3. Incubation
4. Illumination
5. Verification and application

Question 11

Focus on three factors to evaluate level of creativity in the decision process:

Answer 11

1. Fluency refers to the number of ideas a person is able to generate.
2. Flexibility refers to how different the ideas are from one another. Able to generate several distinct solutions to a problem, your decision-making process is high on flexibility.
3. Originality refers to an idea’s uniqueness.

Question 12

Creativity occurs as an interaction among three factors

Answer 12

1. People’s personality traits
2. Their attributes
3. The context