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65 Cards in this Set
- Front
- Back
What is a decision?
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A choice made between two or more available alternatives.
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These decisions are routine and repetitive, and the organization typically develops specific ways to handle them.
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Programmed Decisions
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One-shot decisions that are less structured than programmed decisions.
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Nonprogrammed decisions
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What kind of decision is used if when having to decide if operations are to be expanded into Africa or not?
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Nonprogrammed decision
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What is the "scope of the decision"?
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The proportion of the total management system that the decision will affect.
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What are the 3 levels of management?
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lower, middle, upper.
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What is the relationship between scope of the decision and level of management?
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The broader the scope of a decision, the higher the level of the manager responsible for making the decision.
(see fig 7-2 pg 158) |
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What is a consensus?
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An agreement on a decision by all the individuals involved in making a decision.
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Will a group always be able to produce a consensus?
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No
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What are the advantages of a consensus?
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It focuses "several heads" on the decisions.
Employees are more likely to be committed to implementing a decision if they helped make it. |
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What is the main disadvantage of a consensus?
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Involves time-consuming discussions relating to the decision, which can be costly to the organization.
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Who are the first element of the decision situation?
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Decision Makers.
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What are the 4 basic orientations that WEAK decision makers have?
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Receptive oriented
Expoitative oriented Hoarding oriented Marketing-oriented |
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What is the group of people called that make the choice of a decision from various alternatives?
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Decision Makers
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Who is Earnest Dale
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He classified weak decision makers
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Who classifiec weak decision makers?
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Earnest Dale
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What type of decision maker wants everyone else make a decision for them?
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Receptive decision maker
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What type of decision maker steals other peoples' ideas and hogs the credit?
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Exploitative decision maker
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What type of decision maker are self-reliant, want little outside help, and want to maintain their present position and status?
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Hoarding decision maker
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What type of decision maker look upon themselves as commodities and try to maked decisions which enhance their value and are very conscious of what others think of their decisions?
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Marketing-oriented decision maker
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What is the type of decision maker that realizes the organization's potential and are largely free of the 4 undesirable desision-making orientations?
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Ideal decision-making orientation
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What is a relevant alternative?
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The decision situation is usually composed of at least 2 relevant alternatives. A relevant alternative is one that is considered feasible for solving an existing problem and for implementation.
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What is an example of Subjective ordering of Alternatives?
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Past experience of the decision maker.
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What is an example of objective Ordering of Alternatives?
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Rate of output per machine.
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What is the last element of the decision situation?
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Choice between Alternatives. Managers usually choose the alternative that maximizes long-term return forthe organization.
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What is a decision?
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A choice of one alternative from a set of available alternatives.
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Define decision-making process
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the steps the decision maker takes to arrive at a choice.
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What are the 5 steps in the decision making process?
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1. ID an existing problem.
2. List possible alternative for solving the problem. 3. Select the most beneficial of alternatives. 4. Implement the selected alt. 5. Gather feedback to find out if the implemented alt is sloving the id'd problem. |
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What is essentially a problem-solving process that involves eliminating barriers to organizational goal attainment?
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Decision Making
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1st step:
What 3 ways are problems ID'd to managers? |
1. Orders issued by managers'
supervisor. 2. Situations relayed to managers by their sub- ordinates. 3. Normal activity of manager themselves. |
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2nd step;
While listing various solutions for solving problems, what are the 5 limitations on the alternatives available? |
1. Authority factor - superior may have told a manager a certain alternative is not feasible.
2. Biological or human factors - human factors within org inappropriate. 3. Physical factors - physical facilities of the organization may be inappropriate. 4. Technological factors - level of technology may be inadequate for certain alternatives. 5. Economic factors - certain alternatives too costly |
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What additional factors can limit a manager's decison alternatives, and what is it called?
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Discretionary Area - 4 areas
1. legal restrictions 2. moral and ethical norms 3. formal policies and rules 4. unofficial social norms |
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How are decisions supported if they are to have a chace of success?
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Implementation. Putting the choice into action.
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What does feedback do?
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Tells managers if the problem is being solved or not and if they need to seek out and implement another alternative.
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What word is the key in discussing decision-making conditions?
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Future
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What are the 3 different conditions under which decisions are made?
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1. Complete certainty
2. Complete uncertainty 3. RISK |
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What is the Complete Certainty Condition?
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This exists when decision makers know exactly what the results of an implemented alternative will be.
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What is a Complete Uncertainty Condition?
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When decision makers have absolutely no idea what the results of an implemented alternative will be.
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What is the Risk Condition?
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When decision makers have only enough information about the outcome of each alternative to estimate how probable an outcome will be.
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What are DEGREES of the Risk Condition?
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The risk condition is a broad one in which degrees of risk can be associated with decisions, The lower the quality of info about the outcome of an alternative, the closer the situation is to complete uncertainty and the higher is the risk in cloosing that alternative.
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Which type of decision-making condition is made in organizations?
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Risk condition
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What are the 2 objective based decision-making tools used by managers?
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1. Probability theory
2. Decision Tree |
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What decision making-tool is used in risk situations in which decision makers are not completely sure of the outcome of an implemented alternative?
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Probability Theory
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What refers to the likelihood that an even or outcom will actually occur?
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Probability
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What is EV?
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Expected Value
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What is I?
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Income
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What is P?
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Probability
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What formula do decision makers generally coose and implement to figure out which alternative has the HIGHEST EXPECTED VALUE?
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EV=IxP
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What is a graphic decision-making tool typically used to evaluate decisions involving a series of steps?
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Decision tree.
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Who is John F. Magee?
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He developed a classic illustration that outlines how decision trees can be applied to a production decision.
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Once various alternatives have been outlined, the financial consequesnce of each different course of action must be compared. What are the 3 steps management must do?
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1. Study estimates of various inputs such as building another larger, smaller, or expanding a smaller plant.
2. weigh the probabilities of facing different product demand levels for various decision alternatives. 3. Consider projected income yields for each decision alternative. |
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What is the expected value of an alternative minus the investment cost?
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Net expected gain.
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Analysis of the ____ ________ ____ for and expected values for each decision alternative helps management to decide on an appropriate choice.
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Net expected gain
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What are advantages to group decisions?
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1. groups can come up with more and better decision alternative than 1 person.
2. When groups make a decision, members of that group tend to support the implementation of the decision better. 3.Groups tend to perceive decisions as threir own, and this ownership perception makes it more likely they will strive to make the decision succeed. |
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What are the disadvantages to group decisions?
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1. Takes longer
2. Cost - because of the length of time to make a decision. 3. Lower quality because the groups decision is tainted by members efforts to maintain friendly relationships within the group. 3. |
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What is Groupthink?
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When the quality of a decision made by a group is compromised to maintain relationships within the group.
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What are 3 processes that assists groups in making decisions?
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1. Brainstorming
2. Nominal group technique 3. Delphi technique |
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What is the 3 part process of brainstorming?
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1. Group members state ideas - no matter how outlandish)
(no comments by members on ideas between steps 1 & 2) 2.Group leader records each idea where group can read it. 3. Ideas evaluated only after all have been recorded. |
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Which group technique is designed to ensure that each group member has equal participation in making the group decision?
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Nominal group technique
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What are the 4 steps of the Nominal group technique?
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1. Each group member writes down individual ideas on the decision or problem being discussed.
2. Member presents individual ideas orally. Ideas are written on a board for all to see and refer to. 3. After all members present ideas, the entire group discusses these ideas simultaneously. Discussions are usually unstructured and spontaneous. 4. When discussion completed, a secret ballot is taken to allow members to support their favorite ideas without fear. The idea with the most votes is adopted and implemented |
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What group process technique does not have group members meeting face to face?
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Delphi Technique
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What are the 5 steps of the Delphi Technique?
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1. Problem is ID
2 Group members are asked to offer solutions to the problem by providing anonymous responses to a carefully designed questionnaire. 3. Responses of all group members are compiled and sent out to all group members. 4. individual group members are asked to generate a new individual solution to the problem after they have studied the individual responses of all the other group members compiled in Step 3. 5. Steps 3 & 4 are repeated until a consensus problem solution is reached. |
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What is a disadvantage of brainstorming?
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Wasting the groups time on ideas that are widely impractical.
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What is a disadvantage of the nominal group technique?
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No way of knowing why the group voted the way it did.
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What is a disadvantage of the Delphi technique?
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Members are unable to ask questions of one another.
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