Managerial Decision Making Overview
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Questions and Answers

What defines programmed decisions?

  • They require extensive group discussions before making a choice.
  • They are based on well-understood criteria. (correct)
  • They lack clear guidelines for reaching a solution.
  • They are entirely new and innovative solutions.

    • What is a potential advantage of using groups for decision-making?

  • Groups simplify the decision-making process.
  • Groups require less time to reach a consensus.
  • Groups can offer more knowledge and diverse perspectives. (correct)
  • Groups naturally avoid conflicts.

    • Which of the following describes a barrier to effective managerial decision-making?

  • Limited access to comprehensive information. (correct)
  • Ability to process all available information.
  • Overwhelming support from team members.
  • Having a clear outline for decision-making.

    • How can managers improve the quality of nonprogrammed decisions?

    <p>By following the decision-making process steps and engaging others.</p> Signup and view all the answers

    What is a characteristic of managerial decision-making?

    <p>It often involves time constraints and incomplete information.</p> Signup and view all the answers

    What is groupthink, in the context of decision-making?

    <p>A phenomenon where the desire for harmony in a group leads to poor decision-making.</p> Signup and view all the answers

    Which approach supports evidence-based decision-making?

    <p>Collecting data and research to inform decisions.</p> Signup and view all the answers

    What role does a devil's advocate serve in group decision-making?

    <p>To challenge the status quo and prevent groupthink.</p> Signup and view all the answers

    What is a potential consequence of failing to involve diverse stakeholders in decision-making processes?

    <p>Narrower range of alternatives</p> Signup and view all the answers

    What psychological bias may affect a colleague's decision-making when they disregard opposing viewpoints?

    <p>Confirmation bias</p> Signup and view all the answers

    In group decision-making, why is it beneficial to assign someone to play the devil's advocate?

    <p>To challenge existing ideas</p> Signup and view all the answers

    Which factor is cited as contributing to the appeal of vinyl records?

    <p>Nostalgia and emotional connections</p> Signup and view all the answers

    What might hinder the continued sales growth of vinyl records in the future?

    <p>High capital investment for new presses</p> Signup and view all the answers

    Which types of diversity should organizations strive for beyond gender?

    <p>Diversity in racial, ethnic, and knowledge perspectives</p> Signup and view all the answers

    In what way does group decision-making often enhance the process?

    <p>It allows for more diverse input and perspectives</p> Signup and view all the answers

    What research should be considered before investing in new vinyl presses?

    <p>Environmental impact of vinyl production</p> Signup and view all the answers

    What is often a significant misunderstanding regarding the appeal of vinyl records?

    <p>Vinyl is attractive solely because of its physical format</p> Signup and view all the answers

    What is a potential negative effect of groupthink in decision-making?

    <p>Increases the likelihood of poor decisions</p> Signup and view all the answers

    What is confirmation bias?

    <p>The propension to focus on information that supports one's beliefs</p> Signup and view all the answers

    Which type of conflict is considered potentially beneficial for decision-making?

    <p>Process conflict</p> Signup and view all the answers

    What is satisficing in the context of decision-making?

    <p>Selecting the first acceptable solution without further investigation</p> Signup and view all the answers

    Which technique can help reduce groupthink in decision-making groups?

    <p>Utilizing a devil's advocate</p> Signup and view all the answers

    Why do managers with more experience tend to make better decisions?

    <p>They have developed greater expertise through learning</p> Signup and view all the answers

    What is one potential disadvantage of group decision-making?

    <p>Conflict among group members</p> Signup and view all the answers

    What is the purpose of using heuristics in decision-making?

    <p>To save time by using mental shortcuts</p> Signup and view all the answers

    What does groupthink refer to in decision-making groups?

    <p>Members avoiding voicing dissent to maintain harmony</p> Signup and view all the answers

    Which situation requires the use of a more structured decision-making process?

    <p>Nonprogrammed decisions with higher stakes</p> Signup and view all the answers

    What is a benefit of incorporating diverse perspectives in group decision-making?

    <p>Increased chances of finding unique solutions</p> Signup and view all the answers

    What should managers consider when making nonprogrammed decisions?

    <p>The ethical implications of their actions</p> Signup and view all the answers

    What often occurs when one individual has more power in a group decision-making scenario?

    <p>Suppression of dissenting opinions</p> Signup and view all the answers

    What does relationship conflict involve?

    <p>Attacks on individuals rather than ideas</p> Signup and view all the answers

    What characterizes managerial decision-making?

    <p>Complexity, incomplete information, and time constraints</p> Signup and view all the answers

    What is an example of programmed decisions?

    <p>Choosing a vendor from a pre-established list of preferred suppliers</p> Signup and view all the answers

    What is a common barrier to effective decision-making faced by managers?

    <p>Cognitive overload and data processing limitations</p> Signup and view all the answers

    Which system is primarily associated with quick decision-making?

    <p>Reactive decision-making system</p> Signup and view all the answers

    What does the term 'confirmation bias' refer to?

    <p>Selective attention to information that supports pre-existing beliefs</p> Signup and view all the answers

    How can managers improve the quality of group decision-making?

    <p>Assigning a devil's advocate to challenge group consensus</p> Signup and view all the answers

    What is satisficing in decision-making?

    <p>Selecting the first acceptable option rather than the best one</p> Signup and view all the answers

    Why might a manager face challenges in making nonprogrammed decisions?

    <p>They often require additional research and information gathering</p> Signup and view all the answers

    What can lead to ineffective group decision-making?

    <p>Groupthink and suppressed dissent</p> Signup and view all the answers

    When are reflective decision-making processes most beneficial?

    <p>For significant, important decisions that require careful thought</p> Signup and view all the answers

    Which of the following enhances a manager's decision-making skills over time?

    <p>Building expertise through time and experience</p> Signup and view all the answers

    What is a potential negative outcome of poor decision-making?

    <p>Adverse effects on the organization and stakeholders</p> Signup and view all the answers

    What is a key characteristic of nonprogrammed decisions?

    <p>They are novel and lack clear guidelines for solutions</p> Signup and view all the answers

    What characterizes the reflective decision-making system?

    <p>It is logical and analytical.</p> Signup and view all the answers

    When are programmed decisions most appropriate?

    <p>When the decisions are repeated over time.</p> Signup and view all the answers

    Which of the following barriers to effective decision-making involves a reluctance to change course once a decision has been made?

    <p>Escalation of commitment</p> Signup and view all the answers

    What does emotional intelligence in decision-making help recognize and manage?

    <p>The emotions of oneself and others</p> Signup and view all the answers

    Which type of decision requires thoughtful judgment due to ambiguous or incomplete information?

    <p>Nonprogrammed decisions</p> Signup and view all the answers

    Which step of the decision-making process comes after generating multiple alternatives?

    <p>Select an alternative</p> Signup and view all the answers

    What is the primary drawback of bounded rationality in decision-making?

    <p>It prevents full understanding of all alternatives</p> Signup and view all the answers

    Which of the following is a characteristic of reactive decision-making?

    <p>It is often based on impulse and intuition.</p> Signup and view all the answers

    How does uncertainty affect decision-making for managers?

    <p>It can lead to indecision due to unknown outcomes.</p> Signup and view all the answers

    What can result from maximizing shareholder wealth at the expense of others?

    <p>Short-sighted decision-making</p> Signup and view all the answers

    Which of the following is an aspect of effective decision-making?

    <p>Balancing logic with emotional insight</p> Signup and view all the answers

    What type of decisions often utilizes heuristics?

    <p>Programmed decisions</p> Signup and view all the answers

    Which aspect is most influenced by personal biases in decision-making?

    <p>Familiarity with decision alternatives</p> Signup and view all the answers

    Study Notes

    Managerial Decision Making

    • Managerial decisions significantly impact organizations and stakeholders
    • Decisions often involve complexity, incomplete information, and time constraints
    • No single "right" answer is usual; sometimes, multiple good(or bad) options exist
    • Managers must weigh consequences and consider multiple stakeholder needs
    • Ethical considerations are crucial in decision-making

    Decision-Making Systems

    • Brain processes information using two systems
      • Reflective system (logical, rational) for significant decisions
      • Reactive system (quick, intuitive) for urgent situations
      • Experience often enhances reactive system speed
    • Emotional intelligence fosters effective decision-making

    Decision Types

    • Programmed decisions: Based on well-understood criteria, rules, and guidelines
      • Often quicker to make due to established procedures and heuristics
    • Nonprogrammed decisions: Novel situations, lack clear solutions
      • Require more time, research, and creative/analytical approaches

    Barriers to Effective Decision-Making

    • Bounded rationality: Limited information processing capacity
    • Incomplete information: Inability to gather all relevant data
    • Time constraints: Limited time to collect and process information
    • Uncertainty: Difficulty predicting outcomes before implementing decisions
    • Escalation of commitment: Persistence with ineffective decisions
    • Personal bias: Preconceived notions influencing decision-making
      • Confirmation bias: Focusing on confirming beliefs
    • Conflict: Challenges to reaching consensus through process or relationship conflict

    Improving Individual Decision-Making

    • Expertise increases with time and experience
    • Use heuristics and satisficing for programmed decisions
    • Employ systematic process for nonprogrammed decisions
    • Evidence-based decision-making: Research-driven decisions
    • Ethical consideration and long-term outcomes are paramount

    Group Decision-Making

    • Groups can leverage diverse perspectives and knowledge
    • Groups often generate more solutions and options
    • Groupthink and dissent suppression can hinder quality decisions
    • Diverse group composition for enhanced decision quality
    • Devil's advocate can counteract groupthink biases
    • Conflict management necessary, particularly personal or relationship conflict

    Decision-Making Process

    • Recognize the need for decision
    • Generate alternatives
    • Analyze alternatives
    • Select alternative
    • Implement the decision
    • Evaluate effectiveness

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    Description

    Explore the complex landscape of managerial decision-making, where decisions impact organizations and stakeholders. This quiz covers the two distinct decision-making systems, types of decisions, and the importance of ethical considerations. Test your knowledge on both programmed and nonprogrammed decision types.

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