Decision Making in Management

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Questions and Answers

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

Weighting the decision criteria

Identifying a problem or discrepancy (correct)

Selecting an alternative that can alleviate the problem

Evaluating the decision's effectiveness

How do managers become aware of a discrepancy in the decision-making process?

By comparing the current state of affairs to some standard (correct)

By following a standard protocol

By consulting with other managers

By relying on their intuition

What is the purpose of identifying decision criteria in the decision-making process?

To identify a problem or discrepancy

To determine the importance of each criterion in solving the problem (correct)

To evaluate the decision's effectiveness

To select an alternative that can alleviate the problem

What is the outcome of the decision-making process?

Evaluating the decision's effectiveness Signup and view all the answers

What is the primary reason why problem identification is important in the decision-making process?

It is a crucial step in the decision-making process that lays the foundation for all subsequent steps Signup and view all the answers

What is the second step in the decision-making process?

Identifying the decision criteria Signup and view all the answers

Why is the decision-making process described as a set of eight steps?

Because it is a complex and dynamic process Signup and view all the answers

What is the primary focus of the decision-making process?

Solving problems and making decisions Signup and view all the answers

What is the primary objective of planning in an organization?

To reduce uncertainty and bring cooperation Signup and view all the answers

What happens in step 7 of the decision-making process?

The decision is implemented and put into action Signup and view all the answers

What is the purpose of evaluating the results of a decision in the last step of the decision-making process?

To see if the problem was resolved Signup and view all the answers

What is the benefit of involving people in the decision-making process?

They are more likely to endorse the outcome Signup and view all the answers

What is the outcome of planning in an organization?

It leads to the best utilization of resources Signup and view all the answers

What is the purpose of weighing the decision criteria in the decision-making process?

To determine the importance of each criterion Signup and view all the answers

What is the role of planning in reducing uncertainty?

It converts uncertainty into certainty Signup and view all the answers

What is the purpose of step 6 in the decision-making process?

To select the best alternative Signup and view all the answers

What is the significance of identifying criteria in the decision-making process?

To distinguish between relevant and irrelevant factors Signup and view all the answers

Why is it necessary to allocate weights to criteria in decision making?

To prioritize criteria according to their relative importance Signup and view all the answers

What is the primary goal of step 4 in the decision-making process?

To develop alternatives Signup and view all the answers

What is the primary purpose of step 5 in the decision-making process?

To critically analyze each alternative Signup and view all the answers

What determines the best choice in the decision-making process?

The critical analysis of each alternative Signup and view all the answers

What is the outcome of not identifying a particular factor in the decision-making process?

It is considered irrelevant Signup and view all the answers

Why is it essential to evaluate the strengths and weaknesses of each alternative?

To compare each alternative with the established criteria Signup and view all the answers

What is the purpose of allocating a weight of 10 to the most important criterion?

To allocate weights to other criteria relative to the most important one Signup and view all the answers

Study Notes

Decision Making Process

Decision making is a crucial aspect of management, and the quality of decisions determines an organization's success or failure.
The decision-making process consists of eight steps that begin with identifying a problem and conclude with evaluating the decision's effectiveness.

Steps in Decision Making

Step 1: Identify a Problem: Identify a discrepancy between an existing and a desired state of affairs.
Step 2: Identify Decision Criteria: Identify the criteria that will be important in solving the problem.
Step 3: Weight the Criteria: Allocate weights to the identified criteria to give them relative priority in the decision.

Weighing Criteria and Analyzing Alternatives

Allocate weights to criteria by giving the most important criterion a weight of 10 and assigning weights to the rest against that standard.
Use personal preferences to assign priorities to the relevant criteria and indicate their degree of importance.

Development and Analysis of Alternatives

Step 4: Develop Alternatives: List alternatives that could succeed in resolving the problem.
Step 5: Analyze Alternatives: Critically analyze each alternative by appraising it against the criteria and weights established.

Choosing and Implementing the Best Alternative

Step 6: Choose the Best Alternative: Choose the alternative that generated the highest score in step 5.
Step 7: Implement the Decision: Put the decision into action, including conveying the decision to those affected and getting their commitment.

Evaluating the Decision

Step 8: Evaluate the Decision: Appraise the result of the decision to see whether the problem was resolved.
Evaluating the results of a decision is part of the managerial control process.

Objectives of Planning

Reduce Uncertainty: Planning can reduce uncertainty by converting it into certainty to some extent.
Bring Cooperation and Coordination: Planning can bring cooperation and coordination among various sectors of the organization.
Economy in Operation: Planning selects the best alternative, leading to the best utilization of resources and achieving organizational objectives easily.
Anticipate Unpredictable Contingencies: Planning helps anticipate unpredictable contingencies that cannot be predicted.

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Description

This quiz covers the basics of decision making in management, including the process and importance of decision making in an organization.