Classical Model of Decision Making Quiz and Flashcards

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Questions and Answers

What is the primary assumption underlying the Classical Decision-Making Model?

Managers always make optimum decisions.

Managers can identify all possible alternatives, but not their consequences.

Managers can make decisions based on intuition and experience.

Managers can identify and evaluate all possible alternatives and their consequences. (correct)

What is the key characteristic of the Administrative Model of decision making?

It recognizes that decision making is inherently uncertain and risky. (correct)

It is a prescriptive model of decision making.

It emphasizes the importance of intuition in decision making.

It assumes that managers always make optimum decisions.

Which of the following is a key difference between the Classical and Administrative Models of decision making?

The Classical Model is prescriptive, while the Administrative Model is descriptive. (correct)

The Classical Model is used for nonprogrammed decisions, while the Administrative Model is used for programmed decisions.

The Classical Model assumes certainty, while the Administrative Model assumes uncertainty.

The Classical Model is used for programmed decisions, while the Administrative Model is used for nonprogrammed decisions.

What is the primary goal of the Classical Decision-Making Model?

To make optimum decisions. Signup and view all the answers

Which of the following models of decision making is more realistic in terms of real-world decision making?

Administrative Model Signup and view all the answers

What is the main limitation of the Classical Decision-Making Model?

It assumes that managers can make decisions in a rational and objective manner. Signup and view all the answers

What is the primary goal of organizational learning?

To improve employees' desire and ability to understand and manage the organization Signup and view all the answers

What is a characteristic of a learning organization?

Maximizing the ability of individuals and groups to think and behave creatively Signup and view all the answers

What is the definition of creativity in an organizational context?

A decision maker's ability to discover original and novel ideas Signup and view all the answers

What is the primary goal of promoting organizational learning?

To increase the ability of employees to understand and manage the organization Signup and view all the answers

What is the main objective of a learning organization?

To maximize the potential for organizational learning Signup and view all the answers

What is the relationship between organizational learning and creativity?

Organizational learning increases creativity Signup and view all the answers

What is the role of managers in promoting organizational learning?

To promote employees' ability to understand and manage the organization Signup and view all the answers

What is the outcome of effective organizational learning?

Increased potential for creativity and innovation Signup and view all the answers

What is the primary characteristic of programmed decision making?

It is a routine and virtually automatic process Signup and view all the answers

Which of the following is a characteristic of nonprogrammed decision making?

It involves making novel and complex decisions Signup and view all the answers

What is the primary weakness of intuition-based decisions?

They are often biased and unreliable Signup and view all the answers

What is the Classical Decision-making Model primarily based on?

Economic rationality and objective analysis Signup and view all the answers

What is the primary goal of the Administrative Model?

To make rational and optimal decisions Signup and view all the answers

Which of the following is a key difference between programmed and nonprogrammed decision making?

The presence of established rules and guidelines Signup and view all the answers

What is the primary advantage of the Administrative Model?

It is rational and optimal Signup and view all the answers

Which of the following is a key characteristic of the Classical Decision-making Model?

It assumes economic rationality and perfect information Signup and view all the answers

Study Notes

Decision Making Models

The Classical Model is a prescriptive model of decision making that assumes the decision maker can identify and evaluate all possible alternatives and their consequences, and rationally choose the most appropriate course of action.
The goal of the Classical Model is to make an optimum decision, which is the most appropriate decision in light of what managers believe to be the most desirable consequences for the organization.

The Administrative Model

The Administrative Model is an approach to decision making that explains why decision making is inherently uncertain and risky, and why managers usually make satisfactory rather than optimum decisions.
This model recognizes that decision making is a complex and uncertain process.

Managerial Decision Making

Decision making is the process by which managers respond to opportunities and threats by analyzing options and making determinations about specific organizational goals and courses of action.
There are two types of decision making: programmed and nonprogrammed decision making.

Programmed Decision Making

Programmed decision making is a routine, virtually automatic decision making that follows established rules or guidelines.
Managers have made the same decision many times before, and it is often used in routine and repetitive situations.

Organizational Learning and Creativity

Organizational learning is the process through which managers seek to improve employees' desire and ability to understand and manage the organization and its environment.
A learning organization is one that maximizes the ability of individuals and groups to think and behave creatively, thus maximizing the potential for organizational learning to take place.
Creativity is a decision maker's ability to discover original and novel ideas that lead to feasible alternative courses of action.

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Description

A quiz about the classical decision-making model, which assumes the decision maker can identify and evaluate all possible alternatives and their consequences.