Decision-Making Under Uncertainty Final Exam Summary
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Questions and Answers

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

  • Developing alternatives
  • Conveying the decision to others
  • Identifying the decision criteria
  • Defining the decision (correct)

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

  • It becomes a problem when a manager becomes unaware of it
  • There is no pressure to solve the problem
  • The manager must have the authority, information, or resources to solve it (correct)
  • It is always easy to solve

    • What does allocating weights to decision criteria involve?

  • Assigning different levels of importance to criteria (correct)
  • Ignoring the importance of criteria
  • Assigning equal importance to all criteria
  • Balancing the importance of criteria

    • What does implementing the selected alternative involve?

    <p>Putting the chosen alternative into action</p> Signup and view all the answers

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

    <p>By its outcomes</p> Signup and view all the answers

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

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

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

    <p>Prisoner's dilemma</p> Signup and view all the answers

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

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

    What does controlling involve in management?

    <p>Monitoring and regulating activities in the organization</p> Signup and view all the answers

    What are some characteristics of problems according to the text?

    <p>They become a problem when a manager becomes aware of them</p> Signup and view all the answers

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

    <p>Identify the problem, gather information, generate alternatives, evaluate alternatives, choose the best alternative, implement the decision, monitor the decision, review the decision-making process</p> Signup and view all the answers

    What are the three types of decision-making conditions?

    <p>Certainty, risk, uncertainty</p> Signup and view all the answers

    What are the two types of problems and decisions?

    <p>Unstructured problems and nonprogrammed decisions</p> Signup and view all the answers

    What are the three decision-making styles?

    <p>Analytic style, directive style, conceptual style</p> Signup and view all the answers

    What are the 12 decision-making biases?

    <p>Framing bias, hindsight bias, representative bias, recency bias</p> Signup and view all the answers

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

    <p>Rationality, inclusiveness, flexibility, speed, accuracy, creativity</p> Signup and view all the answers

    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.

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    Description

    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.

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