Podcast
Questions and Answers
What does a Management Snapshot illustrate?
What does a Management Snapshot illustrate?
What is Decision Making?
What is Decision Making?
The process by which managers respond to opportunities and threats by analyzing options and making determinations.
What characterizes Programmed Decision Making?
What characterizes Programmed Decision Making?
It is a routine, virtually automatic process where rules or guidelines are applied to familiar situations.
What is Non-programmed Decision Making?
What is Non-programmed Decision Making?
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Intuition is based on __________.
Intuition is based on __________.
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The Classical Model specifies how decisions should be made.
The Classical Model specifies how decisions should be made.
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What is an Optimum Decision?
What is an Optimum Decision?
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What does the Administrative Model explain?
What does the Administrative Model explain?
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Which of the following is a reason why information is incomplete?
Which of the following is a reason why information is incomplete?
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What is satisficing?
What is satisficing?
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The first step in the six-step decision-making process is to __________.
The first step in the six-step decision-making process is to __________.
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What role do entrepreneurs play?
What role do entrepreneurs play?
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Define Social Entrepreneur.
Define Social Entrepreneur.
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What is Organizational Learning?
What is Organizational Learning?
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Which of the following refers to improving the ability of individuals and groups to think creatively?
Which of the following refers to improving the ability of individuals and groups to think creatively?
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The final step in the six-step decision-making process is to __________.
The final step in the six-step decision-making process is to __________.
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What is the Delphi technique?
What is the Delphi technique?
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The Classical Model assumes decision makers have access to all information needed for optimum decisions.
The Classical Model assumes decision makers have access to all information needed for optimum decisions.
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What is the pattern of faulty decision making due to team agreement known as?
What is the pattern of faulty decision making due to team agreement known as?
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Managers should emphasize common mental models to create a learning organization.
Managers should emphasize common mental models to create a learning organization.
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What are skunkworks?
What are skunkworks?
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Study Notes
Management Overview
- Management Snapshot reflects the ongoing challenges in decision making and learning for managers, impacting organizational effectiveness.
Decision Making
- Decision making involves analyzing options to respond to organizational goals, improving performance for stakeholders.
Programmed and Non-programmed Decisions
- Programmed Decision Making consists of routine, automatic processes based on established rules for repetitive situations, e.g., ordering office supplies.
- Non-programmed Decision Making is required for unique situations where no pre-existing rules apply.
Intuition and Decision Models
- Intuition refers to quick decisions based on feelings and beliefs, requiring minimal effort or analysis.
- Classical Model provides a theoretical framework for optimal decision making, based on simplifying assumptions about processes.
Optimal Decision
- An optimum decision is the best choice considering the most favorable outcomes for the organization.
Administrative Model
- The Administrative Model acknowledges uncertainty in decision making, explaining why managers often settle for satisfactory decisions rather than optimal ones, based on:
- Bounded rationality
- Incomplete information
- Satisficing
Bounded Rationality
- Bounded rationality reflects cognitive limitations affecting information processing and decision-making ability.
Incomplete Information
- Incomplete information arises from:
- Unknown alternatives
- Uncertain consequences
- Time restrictions and costs associated with information gathering
Risk and Uncertainty
- Risk involves known possible outcomes with assignable probabilities, while uncertainty refers to unpredictability in decision contexts.
Ambiguous Information
- Ambiguous Information can be interpreted in conflicting ways, complicating decision making.
Constraints in Decision Making
- Time Constraints and Information Costs hinder thorough analysis, limiting the ability to evaluate all possible solutions.
Satisficing
- Satisficing is the practice of seeking a satisfactory solution rather than the ideal one.
Decision-Making Process Steps
- Recognizing the decision need and generating alternatives are foundational steps in structured decision-making.
Entrepreneurial Roles
- Entrepreneurs identify opportunities and mobilize resources for innovation, while social entrepreneurs focus on addressing social issues.
- Intrapreneurs innovate within existing organizations, enhancing products and processes.
Organizational Learning
- Organizational Learning aims to enhance employees' abilities to understand and manage their environment effectively, thus improving performance.
Learning Organization
- A Learning Organization encourages creativity to maximize individual and group potential, fostering a culture of continuous learning.
Senge's Principles
- Five principles for cultivating a Learning Organization:
- Develop personal mastery
- Build complex mental models
- Promote team learning
- Create a shared vision
- Encourage systems thinking
Decision-Making Techniques
- The Delphi technique involves anonymous written responses to questions, facilitating structured decision making.
Groupthink
- Groupthink is a faulty decision-making pattern where team members prioritize consensus over accurate analysis of information.
Skunkworks
- Skunkworks are groups of intrapreneurs separated from standard operations to focus on innovative product development.
Importance of Mental Models
- Managers must highlight the use of a common mental model to effectively frame problems and drive organizational learning.
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Description
This quiz explores the fundamental concepts in management decision making. It covers programmed and non-programmed decisions, as well as the role of intuition and decision models in achieving organizational effectiveness. Test your understanding of these essential management principles.
