Decision-Making Process Overview
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Questions and Answers

What is the gap between the current and desired state of a business?

  • Decision Making
  • Risk
  • Decision Criteria
  • Problem (correct)
  • What is the best description of 'well-structured' problems?

  • Problems that need an intuitive approach.
  • Familiar, straightforward problems that can be solved with established methods. (correct)
  • Problems that are complex and require significant analysis to solve.
  • Ambiguous problems that need creative solutions.
  • Which of the following is NOT a decision-making aid?

  • Rule
  • Procedure
  • Policy
  • Risk (correct)
  • What are two key goals of employee orientation?

    <p>Reduce anxiety, familiarize with the organization, and facilitate transitions</p> Signup and view all the answers

    Which of the following is NOT a type of power?

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

    What is the primary focus of the 'Directive' decision-making style?

    <p>Quick, logical decisions with a short-term focus.</p> Signup and view all the answers

    What does 'Span of Control' refer to in organizational structure?

    <p>The number of subordinates a manager can effectively handle.</p> Signup and view all the answers

    What does 'Bounded Rationality' refer to?

    <p>Decision-making with limited information and resources due to constraints.</p> Signup and view all the answers

    What are the three main components of Human Resource Management?

    <p>Recruitment, training, motivation, and retention of competent employees.</p> Signup and view all the answers

    The decision-making style 'Analytic' is characterized by high tolerance for ambiguity and quick decisions.

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

    An example of a 'Nonprogrammed Decision' is scheduling employees' shifts for the week.

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

    The 'Expert' type of power is based on an individual's position and authority.

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

    What is a 'Job Specification' in the context of HRM?

    <p>A description of the minimum qualifications required for a job.</p> Signup and view all the answers

    The 'Process' type of departmentalization groups employees based on their geographical location.

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

    Which type of appraisal method involves gathering feedback from multiple sources, including supervisors, peers, and subordinates?

    <p>360-Degree Appraisal</p> Signup and view all the answers

    What type of organizational structure emphasizes having only one boss per employee to ensure clarity in reporting lines?

    <p>Chain of Command</p> Signup and view all the answers

    Employee Assistance Programs (EAPs) are designed to promote workplace violence and implement strong security measures.

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

    Study Notes

    Decision-Making Process

    • Problem: A difference between the current state and the desired state.
    • Decision Criteria: Factors relevant to the decision.

    Planning-Function Decisions

    • Setting Goals: Defining short-term and long-term objectives.
    • Choosing Strategies: Selecting effective methods for completing tasks.
    • Budgeting and Assessing: Evaluating competition and creating budgets.

    Decision Implementation

    • Act on Decisions: Communicate with stakeholders and secure their commitment.

    Circumstances in Decision-Making

    • Certainty: Known outcomes.
    • Uncertainty: Unknown outcomes.
    • Risk: Outcomes with some degree of uncertainty.

    Rational Decision-Making Model

    • Rational: Consistent and value-maximizing choices.
    • Bounded Rationality: Simplified decisions due to constraints.
    • Satisficing: Acceptable, "good enough" solutions.

    Types of Problems

    • Well-Structured: Familiar and straightforward.
    • Ill-Structured: Ambiguous and requiring creative solutions.

    Programmed Decisions

    • Routine and Repetitive: Typical decisions.
    • Non-Programmed: Unique and customized decisions.

    Decision-Making Aids

    • Policies: General guidelines.
    • Procedures: Sequential steps.
    • Rules: Clear instructions.

    Decision-Making Styles

    • Directive: Low tolerance for ambiguity, quick decisions.
    • Analytical: High tolerance for ambiguity, thorough decision-making.
    • Conceptual: Creative solutions, long-term focus.
    • Behavioral: People-oriented, collaborative, intuitive.

    Organizational Design

    • Process: Developing or modifying organizational structure.
    • Work Specialization: Dividing work into specific tasks.
    • Chain of Command: One boss per employee.
    • Span of Control: Number of subordinates a manager effectively handles.
    • Organizational Structure - Authority: Right to give orders and expect compliance.
      • Power: Influence beyond position.
      • Responsibility: Obligation to perform assigned duties.
      • Line Authority: Direct authority.
      • Staff Authority: Support role.

    Types of Power

    • Coercive: Based on fear.
    • Reward: Control over valued outcomes.
    • Legitimate: Formal position.
    • Expert: Knowledge or skills.
    • Referent: Admiration or personal traits.

    Types of Departmentalization

    • Functional: Grouping by functions (e.g., marketing, finance).
    • Product: Grouping by products or services.
    • Customer: Grouping by customer types.
    • Geographic: Grouping by regions or territories.
    • Process: Grouping by workflow stages.

    Human Resources Management (HRM)

    • Goals: Balancing employee supply and demand, matching skills with needs, creating a productive environment.
    • Managing: Recruitment, training, motivation, retention of competent employees.
    • Impact of Laws: Federal, state, and local laws influencing HR practices.
    • Affirmative Action Programs: Promoting employment, upgrading, and retention of protected groups.
    • Globalization: HR practices and considerations in global business environments.
    • Work Councils: Employees consulted on decisions.
    • Board Representatives: Employee representation on boards.

    Employee Assessment

    • Human Resource Inventory: Reporting employee details (education, training, experience).
    • Job Analysis: Tasks, duties, and responsibilities; minimum qualifications.

    Recruitment and Selection

    • Recruitment: Locating and attracting applicants.
    • Selection: Screening applicants to find the most suitable candidates.
    • Selection Devices: Written tests, performance-simulation tests, interviews.

    Employee Orientation

    • Goals: Reducing anxiety, familiarizing employees with the organization, facilitating transitions.

    Training

    • Objective: Improve skills, knowledge, and behavior.
    • Methods: On-the-job training (job rotation, understudy assignments) and off-the-job training (classroom lectures, simulations, videos).

    Individual Appraisal Methods

    • Narrative Appraisals: Critical incidents; written methods.
    • Rating Scales: Graphic rating scales; Behaviorally Anchored Rating Scales (BARS).
    • 360-Degree Appraisal: Feedback from multiple sources.

    Sexual Harassment

    • Definition: Unwelcome sexual advances or conduct.
    • Hostile Work Environment: Creating an unwelcoming environment.
    • Organizational Protection: Sexual harassment policies and prompt action.

    Violence in the Workplace

    • Types: Violent crimes in the workplace.
    • Prevention: Training supervisors, implementing employee assistance programs (EAPs), strong security measures.

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    Description

    Explore the essential components of the decision-making process, including planning, implementation, and the different types of problems one may face. This quiz delves into rational decision-making models and the impact of certainty, uncertainty, and risk on decisions. Perfect for students looking to enhance their decision-making skills.

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