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Types of Decision Making in Organizations

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Types of Decision Making in Organizations

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Questions and Answers

What is the main purpose of strategic decisions?

To set the overall direction of the organization (correct)
To make decisions that employees make each day
To determine how things will get done
To analyze the internal and external environment

Which step of the rational decision-making process involves identifying the problem?

Diagnosing the problem (correct)
Articulating problems or opportunities
Analyzing the environment
Developing viable alternatives

What is the main purpose of tactical decisions?

To set the overall direction of the organization
To analyze the internal and external environment
To determine how things will get done (correct)
To make decisions that employees make each day

What is the purpose of operational decisions?

To make decisions that employees make each day to run the organization (C) Signup and view all the answers

Which step of the rational decision-making process involves analyzing the internal and external environment?

Analyzing the environment (B) Signup and view all the answers

What is the main purpose of the decision-making process according to the text?

To identify and choose alternative courses of action (A) Signup and view all the answers

What is the first step in the list of solutions prepared by the engineering manager?

Improve the capacity of the firm by hiring more workers and building additional facilities (C) Signup and view all the answers

What is the purpose of evaluating the alternatives?

To make a choice easier (D) Signup and view all the answers

Which of the following is NOT a characteristic of a good decision?

Good decisions are not accountable (D) Signup and view all the answers

When do managers tend to use the qualitative approach to problem-solving?

When the problem is fairly simple and immediate decisions are needed (B) Signup and view all the answers

What is the purpose of the Economic Order Quantity (EOQ) model?

To determine the optimal number of items to order at one time to minimize total yearly costs (C) Signup and view all the answers

What is the purpose of the Production Order Quantity (POQ) model?

To determine the optimal production quantity (D) Signup and view all the answers