16 Questions
What is the primary difference between decision making and problem solving?
Decision making involves choosing from alternatives, while problem solving requires finding the answer to a question.
Which approach to decision making emphasizes using a logical and systematic process?
Rational approach
What are the primary behavioral aspects of decision making?
Seeking input and managing emotions
Which process refers to a special form of decision making that requires finding the answer to a question?
Problem solving
In the context of decision making, what is creativity related to?
Finding alternatives
What is the nature of group decision making in organizations?
It often leads to better decisions through pooling diverse insights
What is a decision rule?
A statement that tells decision makers which alternative to choose once they have predetermined information about the decision situation
In which type of decision are the outcomes known with enough information to determine the probabilities of various outcomes?
Condition of certainty
What type of decision recurs often enough to develop decision rules?
Programmed decision
Which type of decision deals with new and unusual situations?
Nonprogrammed decision
What is the characteristic of nonprogrammed decisions?
New and unusual
In nonprogrammed decisions, what type of channels for information are available?
Not available, unclear channels
What characterizes the condition of risk?
Certainty of outcomes is unknown but there is enough information to estimate probabilities of various outcomes
Which level in the organization typically deals with nonprogrammed decisions?
Upper levels
What is the basis for a solution in programmed decisions?
Decision rules, set procedures
What is a statement that guides decision makers in choosing an alternative based on predetermined information?
Decision rule
Study Notes
Decision Making vs. Problem Solving
- The primary difference between decision making and problem solving is that problem solving involves identifying a problem, while decision making involves choosing a solution from available options.
Approaches to Decision Making
- The rational approach emphasizes using a logical and systematic process to make decisions.
Behavioral Aspects of Decision Making
- The primary behavioral aspects of decision making are cognitive biases, emotional influences, and social pressures.
Types of Decision Making
- Inquiry refers to a special form of decision making that requires finding the answer to a question.
Creativity in Decision Making
- Creativity is related to generating new and innovative solutions to decision-making problems.
Group Decision Making
- In organizations, group decision making is often characterized by a collaborative and participative approach.
Decision Rules
- A decision rule is a statement that guides decision makers in choosing an alternative based on predetermined information.
Types of Decisions
- Decisions under certainty are those where the outcomes are known with enough information to determine the probabilities of various outcomes.
- Decisions under risk are those where the outcomes are uncertain, but the probabilities of various outcomes can be estimated.
- Decisions under uncertainty are those where the outcomes are uncertain, and the probabilities of various outcomes cannot be estimated.
- Programmed decisions are those that recur often enough to develop decision rules.
- Nonprogrammed decisions are those that deal with new and unusual situations.
Characteristics of Nonprogrammed Decisions
- Nonprogrammed decisions are characterized by a lack of precedent, and the decision maker must rely on judgment and intuition.
- In nonprogrammed decisions, the channels for information are often informal and personal.
Risk and Decision Making
- The condition of risk is characterized by uncertainty and the possibility of loss or gain.
Organizational Decision Making
- Nonprogrammed decisions are typically made at the top or middle levels of an organization.
Programmed Decisions
- The basis for a solution in programmed decisions is a predetermined decision rule or procedure.
Test your understanding of decision making and problem solving concepts from the book 'Organizational Behavior: Managing People and Organizations, Thirteenth Edition'. The quiz covers distinguishing decision making from problem solving and discussing the related learning objectives.
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