Podcast
Questions and Answers
What is the first element in the decision-making process according to Simon (1965)?
What is the first element in the decision-making process according to Simon (1965)?
In the context of decision-making, what does the 'Design Activity' involve?
In the context of decision-making, what does the 'Design Activity' involve?
Which of the following is part of making a data-driven decision?
Which of the following is part of making a data-driven decision?
What is the purpose of decision analysis?
What is the purpose of decision analysis?
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In the decision-making example regarding food business expansion, what was one of the options identified during the Design Activity?
In the decision-making example regarding food business expansion, what was one of the options identified during the Design Activity?
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Which scenario exemplifies the Choice Activity in decision-making?
Which scenario exemplifies the Choice Activity in decision-making?
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Which statement best describes the difference between good decisions and good outcomes?
Which statement best describes the difference between good decisions and good outcomes?
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What does the term 'Intelligence Activity' specifically require in the decision-making process?
What does the term 'Intelligence Activity' specifically require in the decision-making process?
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What was one major reason for ED's poor academic performance in the semester?
What was one major reason for ED's poor academic performance in the semester?
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Which approach did ED take to improve their academic performance?
Which approach did ED take to improve their academic performance?
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What specific academic performance indicator reflects JJT’s struggles during Year 2?
What specific academic performance indicator reflects JJT’s struggles during Year 2?
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What was a major concern regarding JJT’s future academic performance?
What was a major concern regarding JJT’s future academic performance?
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What condition was applied to ED during their probation?
What condition was applied to ED during their probation?
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What support resource might benefit JJT according to the decisions made?
What support resource might benefit JJT according to the decisions made?
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Why is communication with professors emphasized for both ED and JJT?
Why is communication with professors emphasized for both ED and JJT?
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What restrictions were placed on both students during their probation?
What restrictions were placed on both students during their probation?
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What is the first step in the rational decision-making process?
What is the first step in the rational decision-making process?
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Which of the following best describes a single objective decision?
Which of the following best describes a single objective decision?
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What does the maximax framework assume about decision making?
What does the maximax framework assume about decision making?
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How can decision makers counteract the decline in decision quality from frequent decisions?
How can decision makers counteract the decline in decision quality from frequent decisions?
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What characterizes multiple objective decisions?
What characterizes multiple objective decisions?
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What does the minimax framework suggest about decision outcomes?
What does the minimax framework suggest about decision outcomes?
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Why are shortcuts in decision-making often problematic?
Why are shortcuts in decision-making often problematic?
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What is one way to make better decisions according to the described process?
What is one way to make better decisions according to the described process?
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What is the first step in the rational decision making process?
What is the first step in the rational decision making process?
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Which of the following statements best describes the purpose of establishing decision criteria?
Which of the following statements best describes the purpose of establishing decision criteria?
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Which technique is primarily used for generating a wide range of ideas in decision making?
Which technique is primarily used for generating a wide range of ideas in decision making?
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What is the purpose of the Value Tree in decision-making?
What is the purpose of the Value Tree in decision-making?
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What does the 'Consequences' step in the OACTURI model focus on?
What does the 'Consequences' step in the OACTURI model focus on?
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In weighing decision criteria, which aspect is most critical for ensuring a selection is sound?
In weighing decision criteria, which aspect is most critical for ensuring a selection is sound?
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What factor does the 'Risk' component of the OACTURI model evaluate?
What factor does the 'Risk' component of the OACTURI model evaluate?
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Which of the following is NOT a part of the Rational Decision Making process?
Which of the following is NOT a part of the Rational Decision Making process?
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What is Decision Fatigue?
What is Decision Fatigue?
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What is a potential solution to reduce Decision Fatigue?
What is a potential solution to reduce Decision Fatigue?
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How does Decision Paralysis primarily affect an individual?
How does Decision Paralysis primarily affect an individual?
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What does Bounded Rationality suggest about decision-making?
What does Bounded Rationality suggest about decision-making?
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What is Confirmation Bias?
What is Confirmation Bias?
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Which strategy can help alleviate Decision Paralysis?
Which strategy can help alleviate Decision Paralysis?
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What impact does mental fatigue have on decision-making?
What impact does mental fatigue have on decision-making?
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Which statement is true regarding the criteria of value tree in decision-making?
Which statement is true regarding the criteria of value tree in decision-making?
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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.