Podcast
Questions and Answers
What can be a common source of mistakes in managerial decision making?
What can be a common source of mistakes in managerial decision making?
What is the necessary condition for a decision to exist?
What is the necessary condition for a decision to exist?
What is the primary purpose of evaluating alternatives in the decision-making process?
What is the primary purpose of evaluating alternatives in the decision-making process?
What is the main purpose of monitoring in the decision-making process?
What is the main purpose of monitoring in the decision-making process?
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Which type of decision is best suited to the situation when there is no established procedure for the problem being faced?
Which type of decision is best suited to the situation when there is no established procedure for the problem being faced?
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Which of these is NOT mentioned as a source for developing alternatives in the decision-making process?
Which of these is NOT mentioned as a source for developing alternatives in the decision-making process?
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In which decision-making environment does a manager have complete knowledge of alternatives and their potential outcomes?
In which decision-making environment does a manager have complete knowledge of alternatives and their potential outcomes?
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What kind of decision is typically made by middle managers?
What kind of decision is typically made by middle managers?
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Which of the following is a potential indicator of a problem that requires managerial decision-making?
Which of the following is a potential indicator of a problem that requires managerial decision-making?
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What is the significance of implementing a decision?
What is the significance of implementing a decision?
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Which of these circumstances would likely require a non-programmed decision?
Which of these circumstances would likely require a non-programmed decision?
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Which of these is NOT a key step in the rational decision-making process?
Which of these is NOT a key step in the rational decision-making process?
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What is the key characteristic of decision making under conditions of risk?
What is the key characteristic of decision making under conditions of risk?
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Which of these is an example of a programmed decision?
Which of these is an example of a programmed decision?
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What level of management is typically responsible for decisions that involve a high degree of uncertainty?
What level of management is typically responsible for decisions that involve a high degree of uncertainty?
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Which of the following is NOT a characteristic of decision making under conditions of uncertainty?
Which of the following is NOT a characteristic of decision making under conditions of uncertainty?
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Flashcards
Programmed Decisions
Programmed Decisions
Decisions made in routine, repetitive situations using established rules or policies.
Non-programmed Decisions
Non-programmed Decisions
Decisions for novel, unstructured problems with no established procedures.
Types of Decisions
Types of Decisions
Different levels of management handle decisions based on frequency and uncertainty.
Decision-Making Environment
Decision-Making Environment
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Certainty in Decision Making
Certainty in Decision Making
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Risk in Decision Making
Risk in Decision Making
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Uncertainty in Decision Making
Uncertainty in Decision Making
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Strategic Decisions
Strategic Decisions
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Decision Making
Decision Making
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Identifying Problems
Identifying Problems
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Developing Alternatives
Developing Alternatives
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Evaluating Alternatives
Evaluating Alternatives
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Choosing the Best Alternative
Choosing the Best Alternative
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Implementing Solutions
Implementing Solutions
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Monitoring Progress
Monitoring Progress
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Common Decision-Making Mistakes
Common Decision-Making Mistakes
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Study Notes
Decision Making
- Decision making is a management function involving selecting one course of action from available alternatives.
- It's a rational choice or selection from a set of alternatives.
- Without options, no choice or decision exists.
Rational Decision Making Process
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Decision-making has its own processes or steps.
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Identifying Problems:
- A necessary condition for a decision is a problem.
- Problems arise from a discrepancy between actual and desired states; a gap between where one is and where one wants to be.
- Managers use various indicators to locate problems, including deviations from planned performance, past performance, and outside criticism.
- Problem definition can be challenging; often the symptoms of a problem are more noticeable than the underlying issue.
- Managers often focus on finding the right answers instead of the right questions which may lead to errors.
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Developing Alternatives:
- Feasible alternatives must be developed.
- Relevant internal and external organizational factors should be investigated.
- Sources of alternatives include experience, successful managers, group opinions, and external sources.
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Evaluating Alternatives:
- Assess the merits and demerits of each alternative.
- Evaluate each alternative's effectiveness.
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Choosing the Best Alternative:
- Select the best alternative based on the evaluation.
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Implementing and Monitoring the Chosen Solution:
- Implementation and monitoring are crucial for a successful decision-making process.
- A decision not implemented is essentially abstract.
- Resources must be acquired and allocated.
- Monitoring ensures progress aligns with the plan and that the problem is resolved.
Types of Decisions
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Programmed Decisions:
- Made in routine, repetitive, well-structured situations.
- Use predetermined rules, techniques, policies, and procedures.
- Stem from prior experience or technical knowledge about what works in the specific situation.
- Example: Determining if students meet graduation requirements.
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Non-programmed Decisions:
- Used for non-recurring, novel, and unstructured problems.
- No well-established procedure exists.
- Managers lack experience or face extremely complex problems with no precedent.
- Example: Introducing a new product line.
Types of Decisions & Level of Management
- Problems that occur infrequently and involve high uncertainty are strategic and concern top management.
- Frequently occurring problems with predictable outcomes concern lower-level management.
- Middle managers primarily deal with programmed decisions.
Decision-Making Environment
- Decision making, like other management functions, doesn't occur in a vacuum.
- Managers can have perfect knowledge and understanding of actions and consequences.
- Decisions occur under conditions of certainty, risk, and uncertainty.
- Different decision-making environments require tailored responses from managers.
Decision Making Under Different Conditions
- Certainty: Managers have complete knowledge of the situation and consequences.
- Risk: Knowledge about the outcomes is incomplete, but probabilities are estimated.
- Uncertainty: Information and the likelihood of outcomes are not known, increasing the chance of a poor decision.
Why Managers Make Poor Decisions
- Lack of adequate time
- Failure to define goals
- Unreliable information sources
- Fear of consequences
- Focusing on symptoms rather than causes
- Reliance on hunches, intuition, or gut feelings
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Description
This quiz explores the essential concepts of decision making within management functions. It covers the rational decision-making process, including problem identification and developing alternatives. Participants will gain insights into the challenges and steps involved in effective decision making.
