Decision Making Process Overview
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Questions and Answers

Which of the following is TRUE about problem identification?

  • A symptom and a problem are one and the same.
  • Problems are generally obvious.
  • Generally, what is a problem for one manager is a problem for all managers.
  • Effectively identifying problems is not easy. (correct)

    • What should Arnold, the CEO, do first when sales of high-end units decline?

    Determine why sales are off.

    If bus ridership has fallen for three weeks, what is this considered?

  • a symptom
  • a condition, but we need more information to determine whether it is a problem or a symptom. (correct)
  • neither a problem nor a symptom
  • a problem

    • What is the next step in the decision-making process after identifying a problem?

    <p>identifying decision criteria</p> Signup and view all the answers

    What are decision criteria?

    <p>Decision criteria are the factors that are important or relevant to resolving a problem.</p> Signup and view all the answers

    When introducing a new product, Belinda has chosen to focus on target market size, production costs, and net profits. These are Belinda's...

    <p>decision criteria</p> Signup and view all the answers

    Amanda's need for flexible work hours and telecommuting represents her...

    <p>decision criteria</p> Signup and view all the answers

    When choosing a college, Max's desire for an accredited liberal arts college with financial aid represents his...

    <p>decision criteria</p> Signup and view all the answers

    What is the next step after identifying the decision criteria?

    <p>allocating weights to the criteria</p> Signup and view all the answers

    When Bryan prioritizes quality over price and price over lead times for a new lighting fixture supplier, he is...

    <p>allocating weights to the criteria</p> Signup and view all the answers

    Creativity is most important in which step of the decision-making process?

    <p>developing alternatives</p> Signup and view all the answers

    Carla is searching the internet for Himalayan salt suppliers. Carla is in which step of the decision-making process?

    <p>develop-alternatives</p> Signup and view all the answers

    When Joe's team brainstormed ideas to prevent crane crashes, they completed which step?

    <p>develop alternatives</p> Signup and view all the answers

    Comparing prices, quality, and delivery times for Himalayan salt suppliers is which step?

    <p>analyze alternatives</p> Signup and view all the answers

    To help Carla choose a supplier, she should...

    <p>multiply her ratings for each criteria by the weight for the criteria then sum the scores</p> Signup and view all the answers

    When Abby chose to drive and carry an umbrella based on the weather report, she...

    <p>implemented a decision</p> Signup and view all the answers

    In the decision-making process, what happens when implementing an alternative?

    <p>implementing an alternative</p> Signup and view all the answers

    What is crucial for effective implementation?

    <p>allowing those impacted by the outcome to participate in the process</p> Signup and view all the answers

    Before implementing a decision, it is prudent to...

    <p>check to make sure the conditions that existed at the time of the decision still exist, and make sure the decision is still the best one</p> Signup and view all the answers

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

    <p>evaluate the outcome of the decision</p> Signup and view all the answers

    Why is it important to evaluate the results of Joe's team's solution to prevent crane crashes?

    <p>results may vary from expectations</p> Signup and view all the answers

    The decision-making process begins by identifying decision criteria.

    <p>False</p> Signup and view all the answers

    A decision criterion defines what is important or relevant to resolving a problem.

    <p>True</p> Signup and view all the answers

    In the decision-making process, after allocating weights to decision criteria, the decision maker lists viable alternatives that could resolve the problem.

    <p>True</p> Signup and view all the answers

    Once the alternatives to solving a problem have been identified, the next step in the decision-making process is selecting one of these alternatives.

    <p>False</p> Signup and view all the answers

    Implementing an alternative refers to the process of choosing the best alternative.

    <p>False</p> Signup and view all the answers

    What are the 8 steps in the decision-making process?

    <ol> <li>Identify a problem, 2. Identify Decision Criteria, 3. Allocate weights to the Criteria, 4. Develop Alternatives, 5. Analyze Alternatives, 6. Select an Alternative, 7. Implement it, and 8. Evaluate Decision Effectiveness.</li> </ol> Signup and view all the answers

    What is assumed when managers make logical and consistent choices to maximize value?

    <p>rational decision making</p> Signup and view all the answers

    When Dylan uses rational decision making to choose a candidate, he will...

    <p>disregard the fact the one of the candidates is the owner's nephew</p> Signup and view all the answers

    Which of the following is assumed about a rational decision maker?

    <p>is fully objective and logical</p> Signup and view all the answers

    What concept is followed when managers make decisions that are rational but limited by their ability to process information?

    <p>bounded rationality</p> Signup and view all the answers

    Managers are expected to use rational decision-making when making decisions.

    <p>False</p> Signup and view all the answers

    Distinguish between rational decision making and bounded rationality.

    <p>Rational decision making assumes that managers are fully informed, have the time to consider all options, and make choices that are logical and maximize value. Bounded rationality acknowledges that managers have limitations, both in their access to perfect information and their ability to process massive amounts of data. This leads them to make decisions that are 'good enough' given the constraints.</p> Signup and view all the answers

    Intuition is essentially making a decision based on feelings.

    <p>False</p> Signup and view all the answers

    Escalation of commitment is always a negative characteristic of decision making.

    <p>False</p> Signup and view all the answers

    Evidence-based management relies solely on factual data and does not incorporate human judgment.

    <p>False</p> Signup and view all the answers

    What are the 4 ways managers make decisions?

    <ol> <li>Rational decision making, 2. Bounded rationality, 3. Intuitive decision making, and 4. Evidence-based management.</li> </ol> Signup and view all the answers

    The first step in the decision-making process is identifying a problem.

    <p>True</p> Signup and view all the answers

    When is it recommended to use a more structured decision-making process?

    <p>When the decision is complex, important, and has the potential for significant consequences</p> Signup and view all the answers

    Using intuition in decision making should be avoided in most situations.

    <p>False</p> Signup and view all the answers

    Evidence-based management is a relatively new approach to decision making.

    <p>True</p> Signup and view all the answers

    What are some common decision-making biases?

    <p>Common biases include confirmation bias, anchoring bias, availability bias, and framing bias.</p> Signup and view all the answers

    It's important for decision makers to be aware of cultural differences when making decisions that impact people from different cultures.

    <p>True</p> Signup and view all the answers

    Organizations should embrace the concept of 'groupthink' to foster harmony among employees.

    <p>False</p> Signup and view all the answers

    The decision-making process is a linear process that must be completed in a specific order.

    <p>False</p> Signup and view all the answers

    Describe 'escalation of commitment' and provide an example.

    <p>Escalation of commitment is the tendency to continue investing in a failing course of action, even when it is clear that it's not working. For example, a manager might continue to invest in a failing product line, even though it's losing money, because they are committed to the original decision and don't want to admit that it was a mistake.</p> Signup and view all the answers

    Managers who have a high tolerance for ambiguity are better equipped to make decisions in uncertain environments.

    <p>True</p> Signup and view all the answers

    What is evidence based management and why is it important?

    <p>Evidence-based management involves using scientific evidence and data to make decisions rather than relying solely on intuition or tradition. This approach helps reduce bias, improve the accuracy of decisions, and increase their likelihood of success. It's important because it allows organizations to make more informed and effective decisions by leveraging data and research.</p> Signup and view all the answers

    When is the best time to use intuition in decision-making?

    <p>When facing high-stakes, fast-paced decisions with limited data</p> Signup and view all the answers

    Decision-making styles are influenced by personal values and preferences.

    <p>True</p> Signup and view all the answers

    Which of the following is NOT a common decision-making bias?

    <p>Groupthink bias</p> Signup and view all the answers

    The decision-making process can be improved with experience and practice.

    <p>True</p> Signup and view all the answers

    The decision-making process is the same for all types of decisions, from small, routine tasks to large strategic initiatives.

    <p>False</p> Signup and view all the answers

    What is important to consider when making decisions in diverse work environments?

    <p>Cultural differences</p> Signup and view all the answers

    Decision-making is a skill that is not critical to the success of managers.

    <p>False</p> Signup and view all the answers

    Decision-making is a linear process that must be followed step by step.

    <p>False</p> Signup and view all the answers

    Decision-making is influenced by both individual factors and the organizational context.

    <p>True</p> Signup and view all the answers

    It's always better to make a decision quickly than to take time to gather more information and consider all options.

    <p>False</p> Signup and view all the answers

    The decision-making process is a solitary activity best left to managers.

    <p>False</p> Signup and view all the answers

    Decision-making is an art, not a science.

    <p>False</p> Signup and view all the answers

    How can decision-making skills be improved?

    <p>Decision-making skills can be improved through practice, training, and feedback. Seek out opportunities to make decisions, reflect on your own decision-making processes, and learn from both successes and mistakes. Enlist feedback from others, read about best practices, and consider utilizing decision-making tools and techniques.</p> Signup and view all the answers

    Ethical considerations should be ignored in the pursuit of efficient decision-making.

    <p>False</p> Signup and view all the answers

    Managers who are able to quickly adapt their decision-making approach will be more successful in today's fast-changing environment.

    <p>True</p> Signup and view all the answers

    Study Notes

    Decision Making Process

    • A problem is a difference between current conditions and a desired state.
    • Problem identification isn't always straightforward.
    • A symptom is not the same as a problem; a symptom signals a potential issue.
    • Identifying relevant criteria is crucial for effective decision-making.
    • Decision criteria define what's important for resolving a problem.
    • Allocating weights to criteria prioritizes factors.
    • Developing alternatives is a creative process.
    • Analyzing alternatives involves comparing potential solutions.
    • Selecting an alternative involves choosing the best option.
    • Implementing alternatives means putting the decision into action.
    • Evaluating decision effectiveness involves assessing the results.

    Types of Decision Making

    • Rational decision making assumes managers make logical, consistent choices to maximize value.
    • This model assumes unlimited information processing, perfect knowledge, and complete objectivity
    • In reality, bounded rationality acknowledges limitations on information processing and knowledge. Managers make decisions based on available information and simplify complex situations. It's still a logical approach.
    • Intuitive decision making uses past experience and judgment to make quick decisions. This can be effective in situations with incomplete information.
    • Evidence-based management uses data and facts to inform decisions.

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    Description

    This quiz covers the essential steps of the decision-making process, including problem identification and criteria evaluation. Understand the difference between symptoms and problems, and how to effectively analyze and implement decisions. Test your knowledge on rational decision-making models and their assumptions.

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