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Questions and Answers
What is the least desirable method of conflict resolution in a joint family dynamic?
Which of the following is NOT a characteristic that makes a problem significant for a manager?
In the managerial decision-making process, which step involves analyzing problems and understanding their root causes?
Which conflict resolution method is characterized by both parties making concessions?
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What are decision criteria in the context of managerial decision-making?
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What characterizes rational decision-making?
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Which type of decision is primarily concerned with achieving a single goal?
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What do economic decisions primarily deal with?
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Which of the following is an example of non-rational decision-making?
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According to Gross and Crandall, decision-making involves what?
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What distinguishes social decisions from other decision types?
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Which of the following is NOT a type of decision classified by Diesing?
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In rational decision-making, what is the primary goal?
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What characterizes decision-making as a dynamic process?
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Which of the following best describes legal decisions?
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How is decision-making described in terms of its continuity?
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Which characteristic of decision-making emphasizes its role in achieving goals?
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What is indicated by the statement that decision making is the core of planning?
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What complicates the decision-making process in groups?
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What does the term 'integration' refer to in the context of resolving conflicts?
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What is primarily assessed in Step 4 when selecting the best solution?
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Which of the following is a characteristic of political decisions?
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Which type of information is classified as external information?
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In the decision-making process, what does Step 2 primarily focus on?
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What is a key factor to consider when developing alternatives?
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Which criterion is NOT mentioned as a consideration for evaluating alternatives?
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What does Step 5 of the decision-making process involve?
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Which of the following is an important aspect of evaluation and feedback in Step 6?
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Why is internal information significant in the decision-making process?
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Study Notes
Rational Decision making
- Utilizes analytics, facts, and a step-by-step process when making decisions
- Assumes deliberation and weighing of alternatives to achieve goals effectively
- Non-rational decision making occurs when there is uncertainty and probabilities are unknown
- Irrational decisions are made without deliberation or consideration for consequences and are driven by compulsions and urges
Decision Defined
- A choice between two or more alternatives
- The process of choosing the best alternative to reach objectives
Types of Decisions
- Technical decisions relate to achieving a single goal
- Economic decisions deal with multiple goals and scarce resources
- Social decisions are made when value conflicts exist within or between roles
- Legal decisions apply norms or standards to practice situations to resolve disputes
- Political decisions are about how group or individual decisions are made
Characteristics of Decision-Making
- Goal-oriented: Decision making is driven by a specific goal or purpose
- Dynamic Process: Decision making is a continuously changing process, rather than a static entity
- Pervasive Function: Decision making is integral to all aspects of a business
- Continuous Activity: Decision making is a constant activity for managers
- Integral Part of Planning: Decision-making is core to planning
Resolving Conflicts
- Integration: Finding a mutually acceptable solution through discussion
- Acceptance of Differences: Both parties compromise to find a solution that satisfies both
- Conversion: One dominant character convinces the other to accept a solution
- Voluntary Submission: One person gives in to the other
- Struggle & Victory of One Side: One member dominates, resulting in least satisfaction
Six Steps in Managerial Decision-Making Process
- Identifying the problem
- Diagnosing and analyzing the problem
- Developing alternatives
- Selecting the best solution
- Converting decision into action
- Evaluation and feedback
Identifying the Problem
- A discrepancy between an existing and desired state of affairs
- Becomes a problem when a manager becomes aware of it and pressure exists to solve it
- The manager must have authority, information, or resources to solve the problem
Identifying Decision Criteria
- Costs that will be incurred
- Risks that may be encountered
- Desired outcomes
Analyzing the Problem
- Internal Information: Includes personal experiences, values, and standards
- External Information: Includes information on government policies, legislation, and prices of infrequently purchased goods
Developing Alternatives
- Identifying viable alternatives that solve the problem
- Taking into account time, cost constraints, and psychological barriers
Selecting the Best Solution
- Appraising the strengths and weaknesses of each alternative
- Basing an alternative's appraisal on its ability to resolve identified issues
Converting Decision into Action
- Putting the chosen alternative into action
- Conveying the decision and gaining commitment from those who will implement it
Evaluation and Feedback
- judging the soundness of the decision by its outcomes
- Assessing how effectively the problem was resolved and analyzing factors contributing to the outcome
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Description
Explore the principles of rational decision making, understanding how to utilize analytics and facts to choose the best alternatives. This quiz covers various types of decisions, their characteristics, and the processes involved in effective decision making. Test your knowledge on the differences between rational and non-rational decision approaches.
