Questions and Answers
What is an accurate description of decision making?
The process of identifying and choosing alternative courses of action.
Which of the following are examples of what can function as the first stage in rational decision making by managers?
Situations that present possibilities for exceeding existing goals are known as ______.
opportunities
In the given scenario, Ronnie is making a(n) ______.
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A _____ is a choice made from available alternatives.
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Which model of decision making explains how managers should use logic to determine the optimal means of furthering the organization's best interests?
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What is the most valuable competitive resource for a manager who needs alternative solutions to a problem?
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The first stage in the rational decision-making process involves ______.
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What is the third stage of the rational model of decision making?
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Ryan is demonstrating how a(n) ______ affects decision making.
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In the fourth stage of rational decision making, managers will ______.
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Conducting a(n) ______ involves analyzing the underlying causes of a problem or an opportunity.
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What are appropriate actions for a manager to take if a decision is not working as intended?
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The rational model of decision making is considered ______.
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Which part of the rational decision-making process does Kendra's idea exemplify?
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Which models are characteristic nonrational models of decision making?
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Which of the following questions would you use to evaluate alternatives in the third stage of the rational model of decision making?
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Tonya decided to purchase a piece of equipment from a domestic company instead of an overseas company despite the domestic company's higher cost and lower quality. Her decision was based on uncertainty that the foreign shipment would not be able to meet her production deadline. According to Herbert Simon, Tonya was feeling the effects of:
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Successful implementation of major decisions requires which of the following?
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What is defined as an extreme and inflated sense of pride, certainty, and confidence?
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The results of rational decision making should be evaluated because things may occur that were not foreseen, a 'law' in economics known as the Law of ______ Consequences.
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Which model of decision making emphasizes choosing the first solution that meets the criteria rather than the optimal choice?
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Managers are able to make logical decisions without prejudice or emotional blind spots.
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Managers have complete, error-free information about alternative courses of action and their consequences.
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Managers will always select the course of action that they know will most benefit the organization.
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Study Notes
Decision Making Overview
- Decision making involves identifying and selecting among different courses of action.
- A decision is a choice made from available alternatives.
Rational Decision-Making Process
- First stage: Identify the problem.
- Third stage: Evaluate alternatives and select a solution.
- Fourth stage: Implement and evaluate the chosen solution.
Diagnosis and Problem Analysis
- Diagnosis refers to analyzing underlying causes of a problem or opportunity.
- Poor product quality, sales shortfalls, and customer complaints can indicate the first stage of rational decision-making.
Opportunities in Decision Making
- Opportunities are situations that allow for exceeding existing goals.
- Decision making can be influenced by recognizing opportunities, as demonstrated by Ryan’s strategic response to competitor issues.
Satisficing vs. Rational Models
- The rational model is prescriptive, outlining how decisions should ideally be made.
- Satisficing is a nonrational approach where the first acceptable solution is chosen rather than the best possible one.
Bounded Rationality
- Bounded rationality refers to decision-making limitations due to constraints like information access or time.
- Decisions can be influenced by incomplete knowledge, leading to choices less than optimal.
Competent Decision Making
- Involves sensitive planning and consideration of the impacts on those affected.
- Managers need to effectively evaluate alternatives based on their effectiveness, feasibility, and ethical implications.
Importance of Evaluation
- It’s crucial to evaluate decision outcomes due to potential unforeseen consequences, known as the Law of Unintended Consequences.
Psychological Aspects
- Hubris is defined as an excessive sense of pride and confidence that can cloud judgment in decision-making.
Employee Involvement
- Employees with creative ideas are a valuable resource for generating alternative solutions to problems.
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Description
Explore key concepts related to decision making in this Unit 7 flashcard set. Learn about the stages of rational decision-making and the factors that influence managerial choices. Ideal for students and professionals looking to sharpen their decision-making skills.
