Questions and Answers
What is a decision?
A commitment to action that requires the commitment of resources
What are the four types of decisions?
Strategic, operational, programmed, and non-programmed
What are strategic decisions?
Long-term decisions on the future direction of the organization that relate to the world outside the organization and require the commitment of major resources
What are operational decisions?
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What are programmed decisions?
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What are non-programmed decisions?
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What is the eight-step decision-making process?
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What are the different conditions under which decision making can occur?
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What can be used to select the best alternative for programmed decisions?
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What are some examples of quantitative methods?
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What is a decision?
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What are the four types of decisions?
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What are strategic decisions?
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What are operational decisions?
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What are programmed decisions?
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What are non-programmed decisions?
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What is the eight-step process for decision-making?
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What are the conditions that decision making can occur under?
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What can be used to select the best alternative, especially for programmed decisions?
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What are some examples of quantitative methods?
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Study Notes
Introduction to Decision Making and Quantitative Methods
- A decision is a commitment to action that requires the commitment of resources such as people, money, equipment, time, premises, etc.
- Decisions are made with regard to all aspects of the management process: inputs, outputs, and transformations.
- There are four types of decisions: strategic, operational, programmed, and non-programmed.
- Strategic decisions are long-term decisions on the future direction of the organization that relate to the world outside the organization and require the commitment of major resources.
- Operational decisions are shorter-term decisions often on day-to-day matters and within established policy.
- Programmed decisions deal with familiar problems or with well-structured situations and are based on established procedures or policies.
- Non-programmed decisions deal with unstructured situations requiring a unique solution and depend on personal judgment.
- The decision-making process is an eight-step process that includes identifying a problem, selecting and implementing a solution, and evaluating its effectiveness.
- Decision making can occur under different conditions such as certainty, uncertainty, risk, and ambiguity.
- Quantitative methods can be used to select the best alternative, especially for programmed decisions.
- Different quantitative methods are based on different criteria and produce different results.
- Examples of quantitative methods include Laplace method, Maximax method, Maximin method, and Expected Value method.
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