60 Questions
What is the Illusion of control in decision making?
A belief that one can influence events even when one has no control over what will happen
What does the Bounded Rationality model emphasize?
Managers have to apply a less than perfect form of rationality
What is the focus of the Political model of decision making?
The impact of organizational politics on decision making
What is the Escalation of Commitment Model focused on?
Why people continue to pursue a failing course of action
What are the advantages of Group Decision Making?
Larger pool of information, more perspectives and approaches, intellectual stimulation, commitment to the decision
What is the main focus of managerial decision making?
Selecting a course of action from alternatives
Which type of decision making involves routine, well-structured decisions?
Programmed Decisions
What characterizes non-programmed decisions?
Poorly structured and new
At which level of the organization are programmed decisions usually taken?
Lower levels
What is the first step in the decision making process?
Problem identification and diagnosis
Which type of decision making involves judgement and creativity?
Non Programmed Decisions
What is a characteristic of programmed decisions?
Short time frame
At which levels are non-programmed decisions usually taken?
Higher levels
What is involved in the second step of the decision making process?
Identification of alternative solutions
In managerial decision making, what is used for programmed decisions?
Decision rules and set procedures
What is the last step in the decision making process?
Implementing the decision
Which model of decision making emphasizes the impact of organizational politics on the decision making process?
The Political model
What type of power plays an important role in the decision making process according to the text?
Coercive power
What is the main focus of the Escalation of Commitment Model?
Why people continue to pursue a failing course of action
What is a characteristic of Group Decision Making according to the text?
Larger pool of information
What is the Illusion of control in decision making?
A belief that one can influence events even when one has no control over what will happen
What does the Bounded Rationality model emphasize?
Intuition and judgment are required
What characterizes non-programmed decisions?
Judgment and creativity are involved
At which level are non-programmed decisions usually taken according to the text?
Top management level
What is involved in the second step of the decision making process according to the text?
Carefully defining a problem
What does Janis’s Theory of Groupthink refer to?
A distorted style of thinking that renders group members incapable of making rational decisions.
What is one disadvantage mentioned in relation to Group Decision Making?
Difficulty in reaching a consensus
What is the main focus of managerial decision making?
Choice of alternative
What characterizes non-programmed decisions?
Poorly structured and new
At which levels are non-programmed decisions usually taken?
Higher levels
What is involved in the second step of the decision making process?
Identification of alternative solutions
What does the Bounded Rationality model emphasize?
Decision making under constraints
What is the Illusion of control in decision making?
Inflated confidence in one's ability to control outcomes
What are the advantages of Group Decision Making?
Enhanced acceptance and commitment to decisions
Which type of decision making involves routine, well-structured decisions?
Programmed Decisions
What is the focus of the Political model of decision making?
Influence, power, and conflict in decision processes
What is the last step in the decision making process?
Implementing the decision
What is used for programmed decisions?
Decision rules and set procedures
What is involved in the first step in the decision making process?
Problem identification and diagnosis
What is the main focus of managerial decision making?
Identification of alternative solutions
At which levels are non-programmed decisions usually taken?
Top management
Which type of decision making involves routine, well-structured decisions?
Programmed decisions
What characterizes non-programmed decisions?
Poorly structured and new
What is involved in the second step of the decision making process?
Identification of alternative solutions
What does the Bounded Rationality model emphasize?
Impact of organizational politics on decision making process
What is the Illusion of control in decision making?
Overestimating one's ability to control events
What is the first step in the decision-making process?
Problem identification and diagnosis
What type of power plays an important role in the decision-making process according to the text?
Expert power
What are the advantages of Group Decision Making?
Increased speed of decision-making process
What is one of the characteristics of groupthink according to Janis’s Theory?
Close-mindedness and stereotypes about the group
What type of power plays an important role in the decision-making process according to the text?
Coercive power
What does the Escalation of Commitment Model focus on?
Understanding why people continue to pursue a failing course of action
What is one advantage of group decision making mentioned in the text?
Larger pool of information
What does the Bounded Rationality model emphasize?
"Imperfect" form of rationality due to time constraints
What is one assumption of Rationality according to the text?
Managers carefully define a problem and have a clear goal
What is one disadvantage mentioned in relation to Group Decision Making?
Satisficing rather than maximizing resulting from the levelling effect
What characterizes non-programmed decisions according to the text?
They involve intuition and judgement
What is involved in the first step in the decision making process according to the text?
Defining a problem carefully and having a clear goal
Which model concentrates on how managers actually behave in practice when making decisions and recognizes limitations?
Bounded Rationality model
What is used for programmed decisions according to the text?
Routine, well-structured procedures
Study Notes
Decision Making Models
- The Illusion of Control is a phenomenon where individuals overestimate their ability to control events.
- The Bounded Rationality model emphasizes cognitive limitations and imperfect information in decision making.
- The Political model of decision making focuses on the impact of organizational politics on the decision-making process.
- The Escalation of Commitment Model is focused on the tendency to continue investing in a decision despite negative outcomes.
Decision Making Process
First Step: Problem Definition
- The first step in the decision-making process involves defining the problem or opportunity.
Second Step: Identifying Options
- The second step involves identifying alternative solutions or options.
Last Step: Implementing and Reviewing
- The last step in the decision-making process involves implementing the chosen option and reviewing its effectiveness.
Decision Types
- Programmed decisions involve routine, well-structured decisions, often using standard procedures and rules.
- Non-programmed decisions require judgement and creativity, and are typically made at higher levels of the organization.
Group Decision Making
- Group decision making has several advantages, including diverse perspectives and shared responsibility.
- One disadvantage of group decision making is the potential for groupthink, characterized by a lack of critical thinking.
Power and Decision Making
- Organizational politics and power play an important role in the decision-making process.
- The type of power that plays an important role in decision making is organizational politics.
Other Key Points
- Managerial decision making involves making decisions that affect the organization as a whole.
- Rationality assumes that decision makers have complete and perfect information, which is not always the case.
Test your knowledge of managerial decision making with this quiz. Explore the two main types of decisions, programmed and non-programmed, and their characteristics. Understand the integral link to planning and the role of decision making at different levels of the organization.
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