16 Questions
What is the process by which managers respond to opportunities and threats by analyzing options and making determinations about specific organizational goals?
Decision making
In which type of decision making do managers respond to ways to improve organizational performance for the benefit of customers, employees, and other stakeholder groups?
Opportunity response decision
What type of decision making deals with routine, virtually automatic decision making following established rules or guidelines?
Programmed decision
Which type of decisions occur when events inside or outside the organization adversely affect organizational performance, and managers seek ways to increase performance?
Threat response decision
What is the term for events inside or outside the organization that adversely affect organizational performance?
Threats
Which term describes decisions that have been made so many times in the past that managers have developed rules or guidelines to be applied when certain situations inevitably occur?
Programmed decisions
When does a manufacturing supervisor hire new workers?
When existing workers' overtime increases by more than 10 percent
What is the classical model of decision making based on?
The assumption that the decision maker can identify and evaluate all possible alternatives and rationally choose the optimum decision
What concept explains cognitive limitations that constrain manager's ability to interpret, process, and act on information?
Bounded rationality
What is an approach to decision making that explains why managers usually make satisfactory rather than optimum decisions?
Administrative model
What are the reasons for incomplete information mentioned in the text?
Risk, ambiguity, and time constraints
What are nonprogrammed decisions based on?
Unusual, unpredictable opportunities and threats
What are potential advantages of group decision making according to the text?
Superior to individual decision making, less likely to fall victim to bias, able to draw on comb.
What is the main difference between nonprogrammed decisions and programmed decisions?
Nonprogrammed decisions are nonroutine and occur in response to unusual opportunities and threats, while programmed decisions are routine and based on predefined rules.
What is satisfaction in the context of decision making?
Searching for and choosing a satisfactory response to problems and opportunities rather than trying to make the best decision
What concept explains why managers usually make satisfactory rather than optimum decisions?
Bounded rationality
Test your understanding of managerial decision making, learning, creativity, and entrepreneurship with this quiz based on Chapter 7 of the McGraw Hill textbook. Explore concepts related to the nature of managerial decision making and the process of analyzing options and making determinations.
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