Decision-Making Under Uncertainty Final Exam Summary

BonnyDrums avatar
BonnyDrums
·
·
Download

Start Quiz

Study Flashcards

16 Questions

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

Defining the decision

What is a characteristic of a problem according to the text?

The manager must have the authority, information, or resources to solve it

What does allocating weights to decision criteria involve?

Assigning different levels of importance to criteria

What does implementing the selected alternative involve?

Putting the chosen alternative into action

How is the soundness of a decision judged according to the text?

By its outcomes

In which management function does a manager consider the organization's long-term objectives and strategies?

Planning

When applying game theory, which game is mentioned in the text?

Prisoner's dilemma

What is one concept associated with a manager's intuitive decision-making according to the text?

Bounded rationality

What does controlling involve in management?

Monitoring and regulating activities in the organization

What are some characteristics of problems according to the text?

They become a problem when a manager becomes aware of them

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

Identify the problem, gather information, generate alternatives, evaluate alternatives, choose the best alternative, implement the decision, monitor the decision, review the decision-making process

What are the three types of decision-making conditions?

Certainty, risk, uncertainty

What are the two types of problems and decisions?

Unstructured problems and nonprogrammed decisions

What are the three decision-making styles?

Analytic style, directive style, conceptual style

What are the 12 decision-making biases?

Framing bias, hindsight bias, representative bias, recency bias

What are the 6 characteristics of an effective decision-making process?

Rationality, inclusiveness, flexibility, speed, accuracy, creativity

Study Notes

Decision-Making Process

  • The first step in the decision-making process is to identify the problem.

Problem Characteristics

  • A characteristic of a problem is that it is a gap between a current and desired state.

Decision Criteria

  • Allocating weights to decision criteria involves assigning importance to each criterion.

Implementing Decisions

  • Implementing the selected alternative involves putting the chosen solution into action.

Evaluating Decisions

  • The soundness of a decision is judged by its outcome, which is the result of the decision.

Management Functions

  • Planning is the management function that involves considering the organization's long-term objectives and strategies.

Game Theory

  • The game mentioned in the text when applying game theory is the zero-sum game.

Intuitive Decision-Making

  • One concept associated with a manager's intuitive decision-making is instinct.

Controlling

  • Controlling involves monitoring and correcting the implementation of a decision.

Problem Types

  • Characteristics of problems include being a gap between a current and desired state.

Decision-Making Process Steps

  • The 8 steps of the decision-making process are: identifying the problem, generating alternatives, evaluating alternatives, selecting an alternative, implementing the selected alternative, evaluating the outcome, following up, and reviewing the decision.

Decision-Making Conditions

  • The three types of decision-making conditions are certainty, risk, and uncertainty.

Problem and Decision Types

  • The two types of problems and decisions are structured and unstructured.

Decision-Making Styles

  • The three decision-making styles are rational, intuitive, and behavioral.

Decision-Making Biases

  • The 12 decision-making biases include confirmation bias, anchoring bias, and availability heuristic, among others.

Effective Decision-Making

  • The 6 characteristics of an effective decision-making process are: defining the problem, establishing criteria, weighing criteria, generating alternatives, selecting an alternative, and reviewing the decision.

Test your understanding of decision-making under uncertainty with a focus on the decision-making process, types of decisions, and decision-making conditions. This quiz covers topics such as rational decision-making, bounded rationality, satisficing, intuitive decision-making, and different types of problems and decisions.

Make Your Own Quizzes and Flashcards

Convert your notes into interactive study material.

More Quizzes Like This

Use Quizgecko on...
Browser
Browser