Decision Definition and Making
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What is the first element in the decision-making process according to Simon (1965)?

  • Design Activity
  • Choice Activity
  • Intelligence Activity (correct)
  • Data-driven Decision
  • In the context of decision-making, what does the 'Design Activity' involve?

  • Identifying alternative options and analyzing these alternatives. (correct)
  • Clarifying the situation that requires a decision.
  • Choosing a course of action among available alternatives.
  • Evaluating the outcomes of previous decisions.
  • Which of the following is part of making a data-driven decision?

  • Incorporating behavioral science insights. (correct)
  • Choosing an alternative based solely on intuition.
  • Evaluating past outcomes without current data.
  • Ignoring technological applications.
  • What is the purpose of decision analysis?

    <p>To examine the process leading to selecting an alternative.</p> Signup and view all the answers

    In the decision-making example regarding food business expansion, what was one of the options identified during the Design Activity?

    <p>Do nothing.</p> Signup and view all the answers

    Which scenario exemplifies the Choice Activity in decision-making?

    <p>Deciding on opening specific times only.</p> Signup and view all the answers

    Which statement best describes the difference between good decisions and good outcomes?

    <p>Good decisions may not always lead to good outcomes.</p> Signup and view all the answers

    What does the term 'Intelligence Activity' specifically require in the decision-making process?

    <p>Defining and clarifying the decision-making situation.</p> Signup and view all the answers

    What was one major reason for ED's poor academic performance in the semester?

    <p>Exceptional and distressing personal situation</p> Signup and view all the answers

    Which approach did ED take to improve their academic performance?

    <p>Improved communication with professors and enhanced time management</p> Signup and view all the answers

    What specific academic performance indicator reflects JJT’s struggles during Year 2?

    <p>Sem 1 QPI of 0.33</p> Signup and view all the answers

    What was a major concern regarding JJT’s future academic performance?

    <p>Lack of a clear improvement plan</p> Signup and view all the answers

    What condition was applied to ED during their probation?

    <p>Finish the incomplete subject</p> Signup and view all the answers

    What support resource might benefit JJT according to the decisions made?

    <p>Counseling or academic support resources</p> Signup and view all the answers

    Why is communication with professors emphasized for both ED and JJT?

    <p>To improve academic outcomes and support</p> Signup and view all the answers

    What restrictions were placed on both students during their probation?

    <p>Involvement in athletic competitions and org-led events as core team members</p> Signup and view all the answers

    What is the first step in the rational decision-making process?

    <p>Identifying a problem</p> Signup and view all the answers

    Which of the following best describes a single objective decision?

    <p>A decision that focuses entirely on maximizing or minimizing one objective</p> Signup and view all the answers

    What does the maximax framework assume about decision making?

    <p>It operates under optimistic conditions for best possible outcomes</p> Signup and view all the answers

    How can decision makers counteract the decline in decision quality from frequent decisions?

    <p>Take control of their thinking</p> Signup and view all the answers

    What characterizes multiple objective decisions?

    <p>They often require balancing and prioritizing conflicting interests</p> Signup and view all the answers

    What does the minimax framework suggest about decision outcomes?

    <p>It assumes that losing is unavoidable and thus prepares for that</p> Signup and view all the answers

    Why are shortcuts in decision-making often problematic?

    <p>They can lead to oversimplification and poor outcomes</p> Signup and view all the answers

    What is one way to make better decisions according to the described process?

    <p>Work as a team to lessen limitations for decision-making</p> Signup and view all the answers

    What is the first step in the rational decision making process?

    <p>Identify the problem</p> Signup and view all the answers

    Which of the following statements best describes the purpose of establishing decision criteria?

    <p>To define the desired outcomes based on values and preferences</p> Signup and view all the answers

    Which technique is primarily used for generating a wide range of ideas in decision making?

    <p>Brainstorming</p> Signup and view all the answers

    What is the purpose of the Value Tree in decision-making?

    <p>To ensure all attributes are independently measurable</p> Signup and view all the answers

    What does the 'Consequences' step in the OACTURI model focus on?

    <p>Assessing the potential outcomes of each alternative</p> Signup and view all the answers

    In weighing decision criteria, which aspect is most critical for ensuring a selection is sound?

    <p>Completeness of criteria</p> Signup and view all the answers

    What factor does the 'Risk' component of the OACTURI model evaluate?

    <p>The willingness to accept uncertainty in outcomes</p> Signup and view all the answers

    Which of the following is NOT a part of the Rational Decision Making process?

    <p>Guess the outcome</p> Signup and view all the answers

    What is Decision Fatigue?

    <p>The declining quality of decisions after prolonged decision-making.</p> Signup and view all the answers

    What is a potential solution to reduce Decision Fatigue?

    <p>Creating routines and habits to limit decision-making.</p> Signup and view all the answers

    How does Decision Paralysis primarily affect an individual?

    <p>It decreases overall productivity due to overthinking.</p> Signup and view all the answers

    What does Bounded Rationality suggest about decision-making?

    <p>Individuals often settle for 'good enough' decisions due to constraints.</p> Signup and view all the answers

    What is Confirmation Bias?

    <p>The inclination to favor evidence that supports existing beliefs.</p> Signup and view all the answers

    Which strategy can help alleviate Decision Paralysis?

    <p>Limit the number of choices presented in a situation.</p> Signup and view all the answers

    What impact does mental fatigue have on decision-making?

    <p>It decreases awareness of fatigue, impacting decision quality.</p> Signup and view all the answers

    Which statement is true regarding the criteria of value tree in decision-making?

    <p>It can assist in weighing the importance of different attributes.</p> Signup and view all the answers

    Study Notes

    Decision Definition and Making

    • Decision: A conclusion reached after consideration, leading to a commitment for action based on crises, problems, or opportunities.
    • Decision-making: Process of selecting among alternatives, comprising three elements: intelligence activity, design activity, and choice activity.
    • Intelligence Activity: Define and clarify the situation necessitating a decision.
    • Design Activity: Identify and analyze alternative options.
    • Choice Activity: Select a course of action from available options.

    Data-driven Decision

    • Involves multiple layers incorporating business tactics, mathematical formulas, technological applications, and behavioral science.
    • Focus on differentiating good decisions from good outcomes.

    Decision Analysis

    • Examination of the process leading to selection of alternatives, considering individual circumstances and backgrounds.
    • First Case: ED: Poor grades linked to personal crisis; improvement plan laid out, indicating commitment to changes.
    • Second Case: JJT: Struggles due to personal issues with no clear improvement plan; university should consider structured support.

    Rational Decision Making Process

    • Identify the Problem: Define and distinguish between current and preferred situations.
    • Establish Decision Criteria: Assess values and preferences, creating a value tree for measurable attributes.
    • Weigh Decision Criteria: Prioritize decision factors.
    • Generate Alternatives: Brainstorm and utilize techniques like SWOT analysis to develop potential solutions.
    • Evaluate and Select Best Alternative: Eliminate options to find the most viable solution.

    OACTURI Model

    • Objectives: Desired outcomes of the decision.
    • Alternatives: Different courses of action available.
    • Consequences: Potential outcomes linked to alternatives versus objectives.
    • Tradeoffs: Balancing conflicting factors of selected alternatives.
    • Uncertainty: Assess impact of uncertain elements on outcomes.
    • Risk: Evaluate willingness to embrace risks, identifying those that can be minimized.
    • Information: Gather additional data for informed decision-making.

    Decision Fatigue and Paralysis

    • Decision Fatigue: Deterioration in decision quality after extensive decision-making leads to mental fatigue.
    • Solution: Reduce decision load, prompt early decisions, and create routines.
    • Decision Paralysis: Overthinking leads to inaction, harming productivity.

    Bounded Rationality

    • Individuals make decisions within limits of knowledge; settle for satisfactory rather than optimal solutions due to constraints.
    • Reliance on heuristics can lead to suboptimal outcomes.

    Confirmation Bias

    • Tendency to favor evidence that confirms existing beliefs while disregarding contradicting information.
    • This bias can obstruct problem identification and solution development.

    Strategies to Improve Decision-making

    • Control thinking processes and mitigate unconscious influences on decisions.
    • Collaborate in teams to gather comprehensive information.

    Summary of Module 1

    • Decisions involve selecting alternatives; focus on understanding the reasoning behind decisions made.
    • Good outcomes don’t always stem from good decisions; ensure robust decision-making processes.
    • Utilize the rational decision-making framework to systematically address problems.
    • Quality of decisions may decline with numerous daily decisions; consciously mediate against cognitive shortcuts.

    Quantitative Frameworks

    • Single Objective: Decisions aimed at achieving one primary outcome, typically framed as "maximize" or "minimize".
    • Multiple Objectives: Involve balancing competing goals; necessitate trade-offs due to conflicts among objectives.
    • Payoff Table: Tool to display expected outcomes for different alternatives under varying conditions.

    Decision-Making Frameworks

    • Maximax Framework: Optimistic approach, selecting highest payoffs for each alternative to find the best overall option.
    • Minimax Framework: Pessimistic approach focusing on minimizing potential losses during decision-making.

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    Description

    This quiz explores the comprehensive concepts of decision-making including definitions, design activities, and choice activities. It also examines data-driven decision-making and its relationship to business tactics and outcomes. Test your understanding of the nuances involved in the decision-making process.

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