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61 Cards in this Set
- Front
- Back
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What is decision making under risk? |
Lack of complete certainty regarding the outcomes but an awareness of the probabilities associated with their occurrence - use past experience & research |
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What is decision making under conditions of uncertainty? |
managers don't know the alternatives, potential outcomes, or the probability of the outcomes occurrence |
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What decision making in most common? least common? most difficult? |
mc- decisions under risk lc- decions under certainty md- decision under uncertainty |
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What is groupthink? |
groupthink is when people choose not to disagree or raise objections because they don't want to break up a positive team spirit |
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What is a devils advocate? |
a person with the job of criticizing ideas |
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What is a network organization? |
a collection of independent, mostly single function firms that collaborate on a good or service |
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What is modular network organization? |
temporary arrangements among partners that can be assembled and reassembled to adapt to the environment |
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What is the difference between mechanistic and organic organization? |
Mechanistic- formal structure intended to promote internal efficiency
organic- much less rigid and in fact emphasizes flexibility |
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How do programmed/non programmed decisions and the different decision making conditions relate? |
Under risk- mix of both (you go for the best option under certainty- programmed (know outcome so its easy to choose under uncertainty- non programmed (you have no idea the outcome so you have to make a rational decision, very hard to program)
non programmed- uncertainty and risk programmed- certainty and risk |
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What is decision making under conditions of certainty? |
When the managers know all the available alternative and the outcomes associated with each; no element of chance - just pick the alternative with the best outcome |
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What is key to making good decisions under risk? |
Accurately determining the probabilities associated with each alternative |
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What does the traditional economic model assume about decision-makers? |
1) managers seek to maximize benefits (or minimize costs) 2) managers are completely rational |
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Under what decision-making condition of decisions get made in the traditional economic model? |
Under conditions of certainty |
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Under what behavioral model assume about decision makers? |
- that they have bounded rationality and are satisficing
That decisions are bounded by limited mental capacity and emotions of the manager as well as environmental forces over which the manager has no control; we try to be rational but there are limits equal to satisficing |
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What is bounded rationality? What 3 things bound one's rationality? |
1) limited mental capacity 2) emotional state 3) unforseeability of future events |
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What is satisficing? How does it differ from maximizing? is it irrational? |
Going through each possibility until you can find the best one, it may not be the best but it works. you can go through each option until one works
because pick the first alternative instead of doing thorough and evaluating all the alternatives
not irrational
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What is a heuristic? What are the advantages and disadvantages? |
a labor saving device, a short cut, a mental rule of thumb, keeps it simple
advantages- time saving and may produce more good decisions than bad decisions
disadvantages- if we over rely on them, they can lead to errors (bias) and faulty conclusions |
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What is the availability heuristic? |
used when managers assess the frequency of an event by the degree to which similar events are easily recalled in memory |
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What factors cause you to overestimate the frequency of an event? |
events that evoke emotion are vivid, more recent, easily imagined or specific will be more available in memory |
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What are the advantages of specialized jobs? |
-easy -less skilled employees can be hired - constant repetition of job activity leads to increased productivity - work is performed quicker - less dependent on skills of the worker
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What are the disadvantages of specialized jobs? |
- low motivation - lob job satisfaction - low quality performance - high absentees - high turnover - sabotage and strikes - alcohol/drug abuse |
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What are some problems that can be encountered when using the Delphi technique? |
the design of the questionnaire can limit the results obtained, time-consuming, member interest and motivation may decline if it takes too long |
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What is a profit center and what are its benefits? |
each product is a profit center, each has revenues and expenses so you can which ones are doing better and make decisions, also holds people accountable because you know who is associated with each product |
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What is functional organizational design? How are activities grouped? |
groups jobs according to speciality or function, under each group there are more little groups -specialists |
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What are the advantages of functional design? |
specialized- high level of efficiency and expertise |
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What are the disadvantages of functional design? |
each department has its own goals- hard to coordinate lack of generally trained managers- hard to replace the CEO client can be unsatisfied because you're not focused on the environment |
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When does one use functional design? |
small organizations, stable environment, one or few products, defender strategy |
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What does the term "centralized" and "decentralized" mean as they pertain to delegation of authority? |
- centralized: most of the authority is kept at the top (functional design) - decentralized: more and more authority is being delegated down to lower level managers (matrix design)
product design is someone in the middle of the two. relative not one or the other completely |
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What are the benefits of decentralized organizations? |
- skill level of lower manager improves - motivation of lower manager improves - work load is spread out giving top management more time to plan - problems can be solved right then and there by the lower level managers rather than having to go all the way up |
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When does an organization need to decentralize? |
when it needs to be quicker as it grows and become larger, dynamic environment |
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What is product design? How are activities grouped? |
specialists are grouped together to perform all the activities necessary to produce an individual good or service, each product line is separate division of the company |
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What are the advantages of a product design?
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- coordination - profit centers - good for growth and change - higher customer satisfaction - more generally trained managers |
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What are the disadvantages of a product design? |
- wasteful and inefficient because of duplicating specialists - coordination between products can be difficult - a change in product line can be disastrous - less technical expertise is developed |
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When does one use the product design? |
- large companies - dynamic environment - goals are external effectiveness and customer organization - multiple products |
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What is the purpose of job enlargement? |
to make the job more of a challenge by giving the jobholder a wider variety of tasks to perform |
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What two task characteristics do job enlargement increase? |
skill variety and task identity |
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What is the job of product manager in the matrix design? |
coordination |
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What is the job of a functional manager in the matrix design? |
specializtion- decides which projects the personnel go to - most power |
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Which type of manager has no formal authority in the matrix design? |
project manager- violates the parity of authority and responsibility principle, you're a "manager" but you've got no power |
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What is the basic purpose of brainstorming? |
to generate ideas |
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What are the four rules of brainstorming? |
its about getting ride of peoples inhibitions and allowing them to be creative. there are no bad ideas.
1) criticism is prohibited 2) "freewheeling" is welcomes, the more for the wall idea the better 3) quantity is wanted, don't worry about quality 4) combination and improvement are sought |
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What are the steps in NGT? |
1) 7-9 different individuals are brought together and familiarized with a problem 2) each member is asked to prepare a list of ideas in response to the problem on their own 3) after 10-15 min, member share their ideas in a round robin manner 4) period of structured integration where member openly discuss and evaluate each idea 5) each member votes privately by ranking the ideas in order ( brief discussion of votes outcome( final secret ballot |
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What are operations research techniques? |
techniques that help you evaluate your alternatives more systematically they use numerical quantitative evidence they aid/supplement for managerial decision making - not all problems can be solved using this technique - decisions made are only as good as the date put in |
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What are operations research techniques designed to do? |
to reiterate a systematic way of evaluating alternatives under conditions of risk |
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When does a manager use individual decision making rather than group decsision making? |
- limited time - decision makes has all the relevant knowledge and expertise - sure your employees will accept the decision - conflict among other members - there is not a shared goal among everyone in the organization |
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What leads to greater acceptance and better implantation of the decision? |
group decision making |
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Where of you have greater creativity? five individuals generating ideas alone or five individuals gnerating ideas as a group? |
five individuals generating ideas alone |
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Who is more efficient in the long run/short run for decision making? |
long run- group short run - individuals |
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Rank decision making: |
1) best member in the group 2) groups 3) average individual in the group |
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What is the unity of command? Why does one try not to violate this? |
part of chain of command ( only supposed to report to one manager) but when your managers manager bypasses command and gives you orders, you have two bosses.
it puts stress and conflict on the employee about which thing to do first |
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What is job enrichment? How is it different from job enlargement? |
movement backwards towards craft jobs, the worker is given more interesting, meaningful and challenging work to peform and given more control
in increases job depth not just job breadth |
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What are the advantages of job enrichment? |
- high motivation - high job satisfaciton - high quality job performance - low turnover - low absenteeism |
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What are the 3 moderators that influence the effectiveness of job enrichment? |
1) knowledge and skill: ability 2) growth need strength, motivation to do it 3) "context" envioronmental satisfactiona |
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What is task identity? |
the extent to which employees do an entire or whole piece of work and clearly identify with the results of their effort & take pride in it
-INCREASES SKILLED VARIETY |
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What is matrix design? |
combination of functional and product deign- have high tech products that go obsolete quick so experts that can get it down quickly |
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What are the advantages of matrix design? |
- specialization without a loss of coordination - career paths - minimizes duplication of specialists - flexible/responsive |
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What are the disadvantages of matrix design? |
- multiple bosses - stress/strain on employees - employee loyalty difficult - top management loses control - power struggles - people do it because they have to not because they want to |
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When does one use the matrix design? |
- large companies - dynamic environment - high tech products - goals and creativity and inovation and deadlines - prospector strategy |
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What is the relationship of span of control and organization height? |
narrowed span- height on management control higher wider span- height on management is shorter |
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What is autonomy? |
the extent to which employees have a major say in scheduling their work, selecting the equipment and methods they will use, checking their own work and deciding which procedure to follow |
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Which types of decisions are made irrationally? |
non programmed |
