Decision Making in Management

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Questions and Answers

What is a key reason for collaboratively setting specific objectives in a unit?

To minimize the need for action plans

To avoid the need for performance reviews

To ensure only managers are involved in decision-making

To create a sense of ownership among employees (correct)

Which step is NOT part of the goal-setting process?

Draft a budget for the goals (correct)

Evaluate available resources

Write down the goals

Review the organization's mission

Which planning approach involves only top-level managers making decisions?

Participatory planning

Integrated planning

Traditional approach (correct)

Collaborative planning

What type of planning is typically associated with lower-level managers?

Operational planning Signup and view all the answers

What is one benefit of performance-based rewards in MBO?

They reinforce the achievement of objectives Signup and view all the answers

Environmental scanning in planning is primarily used for what purpose?

To detect emerging trends Signup and view all the answers

What is a key contingency factor affecting the planning process?

Environmental conditions Signup and view all the answers

What is the primary goal of writing down objectives in the goal-setting process?

To communicate them to relevant stakeholders Signup and view all the answers

What characterizes a rational decision maker?

Selection of options that maximize organizational goals. Signup and view all the answers

What is an example of a programmed decision?

Following a standard operating procedure for ordering supplies. Signup and view all the answers

In what type of condition can managers make decisions with accurate outcomes?

Certainty. Signup and view all the answers

Which of the following describes bounded rationality?

Making satisfactory decisions due to limitations in information processing. Signup and view all the answers

What is an intuitive decision based on?

Experience, feelings, and judgment. Signup and view all the answers

Which type of decision is characterized as unstructured and typically made at upper managerial levels?

Nonprogrammed decisions. Signup and view all the answers

What type of decision-making condition involves estimating the likelihood of certain outcomes?

Risk. Signup and view all the answers

Which statement is true regarding decision making styles?

Different managers can have varying decision making styles. Signup and view all the answers

What is a primary goal of employee training within an organization?

To minimize skills gaps among employees Signup and view all the answers

Which of the following is NOT a method of decruitment?

Bonus incentives Signup and view all the answers

What is the focus of organization orientation during employee onboarding?

The overall company culture and goals Signup and view all the answers

Which selection tool is designed to assess an applicant's skills in a hands-on manner?

Performance simulation test Signup and view all the answers

What is the main advantage of providing customer service and tourism training at Miami International Airport?

To encourage employees to act as regional tourism ambassadors Signup and view all the answers

What characterizes a valid selection device in the hiring process?

A proven relationship to relevant job criteria Signup and view all the answers

Which of the following is a common consequence of human errors in airline accidents?

Poor training and maintenance protocols Signup and view all the answers

What is the purpose of screening job applicants in the selection process?

To identify the best candidate for the job Signup and view all the answers

What significant event demonstrated the importance of pilot training in emergency situations?

The successful emergency landing of US Airways Flight 1549 Signup and view all the answers

Which of the following is NOT considered a type of specific training?

Executive development Signup and view all the answers

Which training method involves employees learning through hands-on experience after an initial introduction?

On-the-job Training Signup and view all the answers

What is a key advantage of using fictional films for ethics training as noted in the document?

They are highly entertaining and engaging. Signup and view all the answers

Which training method enables employees to gain exposure to various tasks within a specific area?

Job Rotation Signup and view all the answers

What is the primary purpose of employee performance management?

To establish performance standards for evaluation Signup and view all the answers

Which of the following is an example of technology-based training methods?

CD-ROMs and DVDs Signup and view all the answers

Which of these methods involves face-to-face interactive training techniques?

Mentoring and Coaching Signup and view all the answers

What is the primary method used to evaluate employee performance as mentioned?

Return on Investment (ROI) Signup and view all the answers

Which of the following appraisal methods involves evaluating critical behaviors?

Critical Incident Signup and view all the answers

What is the main disadvantage of the Written Essay appraisal method?

It may better measure evaluator's writing ability than actual performance. Signup and view all the answers

Which performance appraisal method combines elements of critical incidents and a graphic rating scale?

BARS Signup and view all the answers

What is a significant advantage of using the Graphic Rating Scale methodology?

Offers quantitative data. Signup and view all the answers

Which method is known to be time-consuming and difficult to develop, but focuses on specific and measurable job behaviors?

BARS Signup and view all the answers

What issue did Discovery Communications Inc. face in its compensation program?

Equal salaries for top performers and poorer performers. Signup and view all the answers

What is one of the key benefits of using Multiperson Comparison in performance appraisal?

It rates employees in comparison to others in the work group. Signup and view all the answers

Study Notes

Evaluating Decision Effectiveness

Assess the outcomes of decisions to determine if the problem was effectively resolved.

Four Perspectives on Managerial Decision Making

Rationality: Decision makers are objective and logical, choosing alternatives that best serve organizational goals.
Bounded Rationality: Managers make rational decisions but are limited in their ability to process information, leading to "satisficing" instead of maximizing outcomes.
Intuition: Decision making based on experience, feelings, and accumulated judgment, often in situations lacking clear data.
Evidence-Based Management (EBMgt): Systematic use of the best available evidence to enhance management practices.

Types of Problems and Decisions

Structured Problems: Situations that are straightforward and easily defined.
- Programmed Decisions: Repetitive decisions managed through routine approaches.
  - Procedures: Sequential steps for addressing structured problems.
  - Rules: Explicit directives regarding permissible actions.
  - Policies: Guidelines that inform decision-making.
Nonprogrammed Decisions: Unstructured, new situations requiring creativity and judgment.

Decision-Making Conditions

Certainty: Situations where outcomes of alternatives are known.
Risk: Situations where probabilities of outcomes can be estimated.
Uncertainty: Situations lacking certainty or reliable probability estimates.

Decision-Making Style

Successful management involves setting specific unit objectives collaboratively with team members.
Clear action plans must be established and progress reviewed frequently.
Performance-based rewards reinforce goal achievement.

Steps in Goal Setting

Review the organization's mission.
Evaluate resource availability.
Set individual or collaborative goals.
Communicate goals clearly.
Review results to assess goal achievement.

Developing Plans

Influenced by:
- Organizational Level: Hierarchical relationship between managers and type of planning.
- Environmental Factors: External influences affecting planning.
- Time Frame: Long-term vs short-term planning considerations.

Approaches to Planning

Traditional planning is performed by top-level managers with formal assistance from planning departments, cascading down through organization levels.

Contemporary Planning Issues

Effective management in dynamic environments involves environmental scanning to anticipate trends and changes.

Recruitment Strategies

Utilization of diverse sources such as the Internet, employee referrals, company websites, and professional recruiting organizations.

Decruitment Options

Strategies to manage labor supply include layoffs, reduced workweeks, early retirements, job sharing, and transfers.

Selection Process

Involves screening job applicants to determine who is best qualified, predicting future success based on selection criteria.

Selection Tool Characteristics

Validity: Proven relationship between selection devices and relevant criteria.
Reliability: Consistent measurement of the same attributes.

Employee Training Approach

Training encompasses customer service, skills development, and ethics, reinforced by successful examples like Miami International Airport's training programs.

Orientation

New employee orientation helps integrate individuals into their roles and the organization, covering both team and organizational aspects.

Training Methods

Traditional Methods: On-the-job training, mentoring, job rotation, experiential exercises, and workbooks/manuals.
Technology-Based Methods: Use of multimedia, classroom lectures, and distance learning.

Employee Performance Management

A structured system to evaluate employee efficiency using multiple appraisal methods, with a focus on Return on Investment (ROI) in training.

Compensation and Benefits

Essential for attracting and retaining talent, requiring adjustments to maintain morale and effectiveness within the organization.

Performance Appraisal Methods

Several methods available, including:
- Written Essay: Evaluator describes strengths and weaknesses.
- Critical Incident: Focus on specific performance behaviors.
- Graphic Rating Scale: Rates employees on various performance factors.
- BARS: Combines critical incidents and rating scales.
- Multiperson Comparison: Evaluates employees against each other within work groups.

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Description

Explore the various perspectives on how managers make decisions, including rationality and bounded rationality. This quiz assesses your understanding of decision effectiveness and evaluation criteria. Test your knowledge of management decision-making strategies.