Podcast
Questions and Answers
What is the primary distinction between programmed decisions and non-programmed decisions?
What is the primary distinction between programmed decisions and non-programmed decisions?
Which step involves evaluating the pros and cons of each alternative?
Which step involves evaluating the pros and cons of each alternative?
Which decision-making model recognizes biases and limitations of human decision makers?
Which decision-making model recognizes biases and limitations of human decision makers?
What bias involves overestimating the importance of readily available information?
What bias involves overestimating the importance of readily available information?
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Which of the following is the final step in the decision-making process?
Which of the following is the final step in the decision-making process?
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In the participative model, what is the main advantage of involving multiple stakeholders?
In the participative model, what is the main advantage of involving multiple stakeholders?
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What tendency is described by the term 'confirmation bias'?
What tendency is described by the term 'confirmation bias'?
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What is the first step in the decision-making process?
What is the first step in the decision-making process?
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Which model involves a systematic, step-by-step approach based on objective analysis?
Which model involves a systematic, step-by-step approach based on objective analysis?
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What is the primary purpose of gathering relevant information in the decision-making process?
What is the primary purpose of gathering relevant information in the decision-making process?
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Study Notes
Decision Making
Definition
Decision making is the process of selecting a course of action from multiple alternatives to achieve organizational goals.
Types of Decisions
- Programmed Decisions: Routine, repetitive, and well-structured decisions that can be handled by standard procedures.
- Non-Programmed Decisions: Unique, complex, and unstructured decisions that require creative problem-solving.
Decision-Making Process
- Problem Identification: Recognize a problem or opportunity that requires a decision.
- Information Gathering: Collect relevant data and information to inform the decision.
- Alternative Generation: Develop a range of possible solutions or alternatives.
- Alternative Evaluation: Evaluate the pros and cons of each alternative.
- Choice: Select the best alternative.
- Implementation: Put the chosen alternative into action.
- Review and Feedback: Monitor and evaluate the outcome of the decision.
Decision-Making Models
- Rational Model: A systematic, step-by-step approach to decision making, based on objective analysis and evaluation of alternatives.
- Behavioral Model: A more realistic approach that recognizes the limitations and biases of human decision makers.
- Participative Model: Involves multiple stakeholders in the decision-making process to increase commitment and ownership.
Decision-Making Biases
- Confirmation Bias: The tendency to seek out information that confirms existing beliefs.
- Anchoring Bias: The tendency to rely too heavily on the first piece of information encountered.
- Availability Heuristic: The tendency to overestimate the importance of information that is readily available.
Effective Decision Making
- Clearly Define the Problem: Ensure a thorough understanding of the issue to be addressed.
- Gather Relevant Information: Collect accurate and unbiased data to inform the decision.
- Evaluate Alternatives Objectively: Avoid biases and consider multiple perspectives.
- Consider Long-Term Consequences: Think beyond immediate needs and consider the long-term implications of the decision.
Decision Making
Definition
- Decision making is the process of selecting a course of action from multiple alternatives to achieve organizational goals.
Types of Decisions
- Programmed Decisions: routine, repetitive, and well-structured decisions handled by standard procedures.
- Non-Programmed Decisions: unique, complex, and unstructured decisions requiring creative problem-solving.
Decision-Making Process
- Problem Identification: recognize a problem or opportunity requiring a decision.
- Information Gathering: collect relevant data to inform the decision.
- Alternative Generation: develop a range of possible solutions.
- Alternative Evaluation: evaluate pros and cons of each alternative.
- Choice: select the best alternative.
- Implementation: put the chosen alternative into action.
- Review and Feedback: monitor and evaluate the outcome.
Decision-Making Models
- Rational Model: systematic, step-by-step approach to decision making based on objective analysis.
- Behavioral Model: recognizes limitations and biases of human decision makers.
- Participative Model: involves multiple stakeholders to increase commitment and ownership.
Decision-Making Biases
- Confirmation Bias: tendency to seek out information confirming existing beliefs.
- Anchoring Bias: tendency to rely too heavily on the first piece of information.
- Availability Heuristic: tendency to overestimate importance of readily available information.
Effective Decision Making
- Clearly Define the Problem: ensure thorough understanding of the issue.
- Gather Relevant Information: collect accurate and unbiased data.
- Evaluate Alternatives Objectively: avoid biases, consider multiple perspectives.
- Consider Long-Term Consequences: think beyond immediate needs, consider long-term implications.
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Description
Understand the definition, types, and process of decision making in organizations. Learn about programmed and non-programmed decisions, problem identification, and more.
