Podcast
Questions and Answers
What is the first step in the decision-making process?
What is the first step in the decision-making process?
- Evaluating the decision’s effectiveness
- Analyzing alternatives
- Identifying the problem (correct)
- Implementing the selected alternative
Why is it necessary to allocate weights to decision criteria?
Why is it necessary to allocate weights to decision criteria?
- To prioritize the criteria based on their importance (correct)
- To simplify the decision-making process
- To ensure all criteria are treated equally
- To reduce the number of alternatives
Which of the following best describes the characteristics of a problem?
Which of the following best describes the characteristics of a problem?
- The problem must exist in all areas of a business
- A problem is always financial in nature
- A manager must be aware and have resources to solve it (correct)
- All problems are resolved in the same manner
What should be done in Step 4 of the decision-making process?
What should be done in Step 4 of the decision-making process?
What is evaluated in Step 8 of the decision-making process?
What is evaluated in Step 8 of the decision-making process?
During which step do managers appraise the strengths and weaknesses of each alternative?
During which step do managers appraise the strengths and weaknesses of each alternative?
What is the primary outcome of selecting an alternative in the decision-making process?
What is the primary outcome of selecting an alternative in the decision-making process?
What does implementing the chosen alternative require from the manager?
What does implementing the chosen alternative require from the manager?
Flashcards
Problem
Problem
A discrepancy between the current situation and the desired outcome.
Decision Criteria
Decision Criteria
Factors considered when making a decision, such as costs, risks, and desired outcomes.
Weighting Criteria
Weighting Criteria
Assigning importance to each criterion, ranking them by their relative value.
Developing Alternatives
Developing Alternatives
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Analyzing Alternatives
Analyzing Alternatives
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Selecting an Alternative
Selecting an Alternative
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Implementing the Alternative
Implementing the Alternative
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Evaluating the Decision's Effectiveness
Evaluating the Decision's Effectiveness
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Study Notes
Decision Making Process
- Decision-making involves choosing from multiple options.
- A process comprises identifying, analyzing, selecting, implementing, and evaluating a solution.
Step 1: Identifying the Problem
- A problem arises from a difference between present and desired situations.
- Managerial awareness, pressure to solve, and necessary resources/authority trigger problem recognition.
Step 2: Identifying Decision Criteria
- Criteria are crucial factors for problem resolution.
- Examples include costs, risks, and desired outcomes (e.g., firm growth).
Step 3: Allocating Weights to Criteria
- Criteria have varying importance.
- Assigning weights prioritizes factors in decision-making.
Step 4: Developing Alternatives
- Generate possible solutions without evaluating them.
Step 5: Analyzing Alternatives
- Evaluate each option's strengths and weaknesses.
- Assessment depends on how well it addresses initial criteria.
Step 6: Selecting an Alternative
- Choose the option with the highest weighted total.
Step 7: Implementing the Alternative
- Put the chosen solution into action.
- Secure commitment from those who execute it.
Step 8: Evaluating Decision Effectiveness
- Assess the outcome to judge the solution.
- Identify areas for improvement if the problem isn't resolved.
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