Podcast
Questions and Answers
What characterizes programmed decisions?
What characterizes programmed decisions?
In which state do decision makers possess accurate and comprehensive information?
In which state do decision makers possess accurate and comprehensive information?
What is the primary task in the first phase of the decision-making process?
What is the primary task in the first phase of the decision-making process?
What does 'satisficing' refer to in decision making?
What does 'satisficing' refer to in decision making?
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In the context of decision making, what does 'conflict' refer to?
In the context of decision making, what does 'conflict' refer to?
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What type of decisions are characterized by new, complex problems?
What type of decisions are characterized by new, complex problems?
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Which phase of decision making involves determining how to measure success?
Which phase of decision making involves determining how to measure success?
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Which of the following describes 'ready-made solutions'?
Which of the following describes 'ready-made solutions'?
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Which of the following best describes the 'risk' aspect in decision making?
Which of the following best describes the 'risk' aspect in decision making?
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What is the final phase of the decision-making process?
What is the final phase of the decision-making process?
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What is the primary goal of optimizing in decision making?
What is the primary goal of optimizing in decision making?
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Which step is NOT part of the adequate planning required for decision implementation?
Which step is NOT part of the adequate planning required for decision implementation?
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What does negative feedback in decision evaluation imply?
What does negative feedback in decision evaluation imply?
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Which type of decision-making process is characterized by quick actions taken without careful consideration?
Which type of decision-making process is characterized by quick actions taken without careful consideration?
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What is motivated reasoning in the context of psychological biases?
What is motivated reasoning in the context of psychological biases?
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Which term describes emotional disagreement that is directed at other people?
Which term describes emotional disagreement that is directed at other people?
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What is bounded rationality?
What is bounded rationality?
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What aspect does the incremental model of decision making emphasize?
What aspect does the incremental model of decision making emphasize?
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Which type of model depicts a chaotic process in decision-making?
Which type of model depicts a chaotic process in decision-making?
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How can creativity be encouraged in others within an organization?
How can creativity be encouraged in others within an organization?
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Study Notes
Characteristics of Managerial Decisions
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Lack of Structure
- Programmed Decisions: Repeated situations with established answers, solvable via rules or numerical data.
- Nonprogrammed Decisions: Unique, complex choices lacking proven solutions, e.g., declines in business sales.
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Uncertainty
- Certainty: Decision makers have complete and accurate information.
- Uncertainty: Inadequate information hinders decision-making effectiveness.
- Risk: Situations where success probability is less than 100%, with potential for losses.
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Conflict
- Psychological or intergroup tensions arising from opposing pressures.
- Types of conflict:
- Individual level: Making choices between alternatives (e.g., job offers).
- Interpersonal level: Disagreements between individuals.
Phases of Decision Making
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Identifying and Diagnosing the Problem
- Recognize discrepancies between current and desired situations.
- Assess opportunities for exploitation and the causes of performance gaps.
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Generating Alternative Solutions
- Ready-made Solutions: Existing ideas previously tried.
- Custom-made Solutions: Innovative solutions tailored for specific issues.
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Evaluating Alternatives
- Analyze potential solutions based on effectiveness and possible consequences.
- Develop contingency plans that adapt to future developments.
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Making the Choice
- Maximizing: Selecting the optimal solution for the best outcome.
- Satisficing: Choosing an acceptable solution, rather than the best.
- Optimizing: Balancing multiple goals efficiently.
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Implementing the Decision
- Planning includes:
- Visualizing the decision's operational state post-implementation.
- Sequencing required steps with timelines and responsibilities assigned.
- Planning includes:
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Evaluating the Decision
- Positive Feedback: Indicates successful implementation and potential for replication.
- Negative Feedback: Requires reassessment due to inadequate results.
Decision-Making Processes
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Reflexive vs. Reflective:
- Reflexive: Quick, instinctive choices.
- Reflective: Careful, analytical approach with thorough consideration.
- Vigilance: Methodical execution across all decision-making stages.
Barriers to Effective Decision Making
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Psychological Biases:
- Motivated Reasoning: Decisions influenced by desire rather than facts.
- Confirmation Bias: Favoring information aligning with pre-existing beliefs.
- Illusion of Control: Overestimating personal influence over outcomes.
- Framing Effects: Presentation of choices that impact perceptions and decisions.
- Discounting the Future: Preference for short-term benefits over long-term gains.
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Time Pressures: Delays in decision-making can lead to missed opportunities or harmful outcomes.
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Social Realities: Decisions shaped through interactions, negotiations, and political dynamics.
Constructive Disagreement
- Cognitive Conflict: Differences in opinions based on factual aspects.
- Affective Conflict: Emotional disagreements targeting individuals.
- Devil’s Advocate: Role designed to critique ideas for comprehensive evaluation.
- Dialectic: Structured debates to juxtapose conflicting decisions.
Encouraging Creativity
- Foster innovation by:
- Diverse reading and experiential learning.
- Idea exchange and constructive feedback.
- Acknowledgment of creative work without penalizing failures.
- Providing intellectually stimulating environments.
Constraints on Decision Makers
- Limited resources including financial, legal, market, human, and organizational factors.
- Regulatory and stakeholder influences may restrict decision-making.
- Collaborative frameworks required in strategic alliances.
Organizational Decision Processes
- Bounded Rationality: Decision-making is imperfect due to complexity and information limitations.
- Incremental Model: Solutions evolve through small, successive decisions.
- Coalition Model: Decisions affected by group dynamics and power negotiations among varied interests.
- Garbage Can Model: Illustrates chaotic, seemingly arbitrary decision-making processes.
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Description
Explore the complexities and characteristics of managerial decisions in this quiz. Understand the differences between programmed and nonprogrammed decisions, the impact of uncertainty, and various types of conflict that can arise. Test your knowledge on the phases of decision making and how to effectively navigate challenges in management.
